§ 831.1404 Financial hardship

5 CFR 831.1404Financial hardship may be deemed to exist in—but not limited to—those situations where the annuitant from whom collection is sought needs substantially all of his/her current income and liquid assets to meet current ordinary and necessary living expenses and liabilities.

5 CFR 831.1404(a)(a) Considerations. Some pertinent considerations in determining whether recovery would cause financial hardship are as follows:

5 CFR 831.1404(a)(1)(1) The individual's financial ability to pay at the time collection is scheduled to be made.

5 CFR 831.1404(a)(2)(2) Income to other family member(s), if such member's ordinary and necessary living expenses are included in expenses reported by the annuitant.

5 CFR 831.1404(b)(b) Exemptions. Assets exempt from execution under State law should not be considered in determining an individual's ability to repay the indebtedness, rather primary emphasis shall be placed upon the annuitant's liquid assets and current income in making such determinations.