Frequently asked questions of the Financial Services Division

Table of Contents

• Estate Recovery
  • What is the Estate Recovery Program?
  • What is the Medicaid Estate Recovery Program?
  • Who is affected by the Estate Recovery Program?
  • How does the Estate Recovery Program work?
  • What types of property are subject to recovery by the state in the Estate Recovery Programs?
  • Are there exemptions from Estate Recovery?
  • What if I believe an estate qualifies for an exemption?
  • What types of debts are collectable through the Estate Recovery programs?
  • What are the time limitations the state has to pursue recovery against an estate?
  • How do I know if the state has a claim against an estate?
• Missouri Incarceration Reimbursement Act (MIRA)
  • What is MIRA?
  • Who is affected by MIRA?
  • What are the recoverable assets under MIRA?
  • Does the court take into consideration obligations to support dependents in an action brought under MIRA?
• Child Support
  • What is the role of the Attorney General's Office in child support matters?
  • How does the Attorney General get involved in child support cases?
  • What types of child support enforcement does the Attorney General's Office handle?
  • What types of modification actions does the Attorney General's Office handle?
  • What do I do if I need information on my case while it is referred to the Attorney General?
  • What do I do if I am not happy with the actions taken by my caseworker?
• Bankruptcy
  • Can I discharge a child support debt?
  • Can I discharge a student loan debt owed to the State of Missouri?
  • Can I discharge a penalty?
• General Collection
  • What type of collection work does the Attorney General do?
  • Does the Attorney General handle student loan recoveries?
  • What do I do if I have a delinquent debt that has been referred to the Attorney General for collection?
  • Can I set up a payment plan to pay my debt to the state?
  • What information should I have when I call the Attorney General about my debt?
• Service on State Agencies
  • What are the addresses that should be used when serving a state agency?

Estate Recovery

What is the Estate Recovery Program?

The Estate Recovery Program seeks recovery from the probated estates of people who are deceased and who were recipients of aid or assistance from the Missouri Department of Social Services, Missouri Department of Health and Senior Services or the Missouri Department of Mental Health.

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What is the Medicaid Estate Recovery Program?

The federal government mandates that states have in place a process to recover moneys paid out under the Medicaid program from deceased recipients of Medicaid. The Attorney General's Office handles more than 2,400 cases a year dealing with Medicaid recoveries.

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Who is affected by the Estate Recovery Program?

The Medicaid Estate Recovery program affects all estates of persons age 55 or older who have received Medicaid services; or individuals under the age of 55 who were an inpatient in a nursing facility, intermediate care facility for the mentally retarded, or other medical institution if the individual was required to spend for costs of medical all but a minimal amount of his income for personal needs.

For other debts owed, the State may pursue estate recovery regardless of the age of the individual or the types of services provided.

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How does the Estate Recovery Program work?

For the Medicaid Estate Recovery Program, the Office of Attorney General works with the Department of Social Services to identify potential estates to file a claim against seeking recovery of the state debt. The Attorney General also works with other state agencies to file claims in the probate estates of individuals who owe that agency a debt. Methods of recovery are the same as those listed above for the Medicaid Estate Recovery Program.

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What types of property are subject to recovery by the state in the Estate Recovery Programs?

Any property, such as real estate, monies or personal property, that a person owns at the time of death in his or her name is subject to recovery through the estate recovery program.

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Are there exemptions from Estate Recovery?

Missouri law provides that estate recovery claims shall not be filed if:

By federal mandate, the Medicaid Estate Recovery Program provides that no recovery shall be had when the deceased leaves a surviving spouse, minor child under the age of 21-years-old or leaves a child of any age who is blind or is disabled. The federal government also requires states to waive recovery if recovery would cause undue hardship as determined by the state.

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What if I believe an estate qualifies for an exemption?

If you believe that an estate qualifies for an exemption, please contact the Attorney General's Office and include the name of the estate, the Social Security Number of the deceased, your relationship to the deceased, and the reason for the exemption:

When making this request, please provide as much detail and any documentation such as disability awards with your request.

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What types of debts are collectable through the Estate Recovery programs?

Public assistance benefits paid to or on the behalf of an individual become a state debt owed from that person's estate upon his or her death including, but are not limited to, Medicaid payments made to nursing homes, hospitals, home health care workers and physicians; general relief payments; and blind pension payments.

Also recoverable are the cost of services provided to inpatients at Department of Mental Health facilities including daily rate charges and cost of medical treatment and outpatient services such as counseling and treatment.

Lastly, any debts owed to any state agency either because of a judgment or demand from the agency survives after death and may be recovered against the debtor's estate.

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What are the time limitations the state has to pursue recovery against an estate?

By state law, the state may pursue recovery at any time after an estate has been opened to seek recovery on a state debt.

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How do I know if the state has a claim against an estate?

If you have a question as to whether the State has a claim against an estate, you may contact the below address by providing the person's name, last known address,date of birth of the deceased, date of death and identifying numbers such as Social Security numbers or state agency number.

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Missouri Incarceration Reimbursement Act (MIRA)

What is MIRA?

The Missouri Incarceration Reimbursement Act (MIRA) authorizes the state, through the Office of the Attorney General, to seek reimbursement for an inmate's cost of care. MIRA authorizes the state to collect up to 90 percent of the value of an inmate's asset or assets in order to pay for his or her cost of care.

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Who is affected by MIRA?

Any person who is under the jurisdiction of the Missouri Department of Corrections and is confined in any state correctional center or is under the continuing jurisdiction of the Missouri Department of Corrections.

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What are the recoverable assets under MIRA?

MIRA defines assets broadly. This definition includes any money received from a civil judgment and a "stream of income from any source whatsoever." Only $50,000 of the value of an inmate's homestead and $2,500 of wages paid while the inmate is incarcerated are excluded from the definition of asset. The state's right to recover under MIRA has priority over all other liens, debts, or other encumbrances against real property or any other assets which are part of an inmate's estate.

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Does the court take into consideration obligations to support dependents in an action brought under MIRA?

When determining an inmate's liability under MIRA, the trial court takes into consideration any legal obligation to support a spouse, minor children, or other dependents and any moral obligation to support dependents to whom the inmate is providing or has in fact provided support.

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Child Support

What is the role of the Attorney General's Office in child support matters?

The Attorney General's Office provides legal representation to the Family Support Division. Our office is committed to helping custodial parents and their children recover the child support to which they are entitled. When appropriate, the Family Support Division refers matters to the Attorney General. However, this office does not have an attorney-client relationship with individual parties to child support cases.

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How does the Attorney General get involved in child support cases?

We provide legal representation to the Family Support Division on cases referred to us by the Division. If you think that one your case involves an issue appropriate for a referral to Attorney General Koster's office, please ask your child support caseworker.

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What types of child support enforcement does the Attorney General's Office handle?

Pursuant to the referral policy of the Division, our office primarily handles the following types of child support enforcement cases:

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What types of modification actions does the Attorney General's Office handle?

The Family Support Division refers cases to the Attorney General to seek judicial approval on cases where the Division has initiated a modification at the request of a party to a child support case. The Attorney General may also represent the Division in modification cases where the custodian of a child is receiving public assistance. If a parent thinks a modification is appropriate on their case they should contact their caseworker.

Additional information is available online.

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What do I do if I need information on my case while it is referred to the Attorney General?

The Attorney General communicates with the Family Support Division concerning the actions if takes on child support matters referred by the Division. Accordingly, your caseworker will be able to provide you with information about the status of your case even after it has been referred to the Attorney General. Likewise, if you have some information that you think may be helpful, please pass this along to your caseworker and he or she will communicate it to our office.

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What do I do if I am not happy with the actions taken by my caseworker?

The Family Support Division maintains a customer relations unit to handle customer inquiries:

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Bankruptcy

Can I discharge a child support debt?

Under 11 U.S.C. § 523(a)(5), child support is not discharged in bankruptcy.

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Can I discharge a student loan debt owed to the State of Missouri?

Under 11 U.S.C. § 532(a)(8), student loans are generally not discharged in bankruptcy.

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Can I discharge a penalty?

Fines and penalties "payable to and for the benefit of a governmental unit" cannot be discharged through a bankruptcy. 11 U.S.C. § 523(a)(7).

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General Collection

What type of collection work does the Attorney General do?

The Attorney General collects many different types of debts, including fees, penalties, fines, assessments, loans, restitution, costs, and the like, on behalf of dozens of state agencies.

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Does the Attorney General handle student loan recoveries?

Yes, the Attorney General handles student loan recovery on behalf of several state agencies.

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What do I do if I have a delinquent debt that has been referred to the Attorney General for collection?

Contact the Financial Services Division of the Attorney General's Office to discuss this debt.

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Can I set up a payment plan to pay my debt to the state?

Typically, you can do a payment plan. If your debt has been referred to the Attorney General for collection, contact the Financial Services Division to discuss a payment plan.

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What information should I have when I call the Attorney General about my debt?

You will want to know what type of debt it is and the state agency to whom you owe it. If you want to set up a payment plan, you should be prepared to discuss your monthly earnings and expenses.

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Service on State Agencies

What are the addresses that should be used when serving a state agency?

Missouri Rule of Civil Procedure 54.13(b)(4) provides for service on state agencies. The addresses for most agencies can be found through the State of Missouri Web site.

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