Bad Debt Scenario – Refund in Error

If a refund was issued to a non-custodial person (NCP) or other state in error (because the balances were incorrect), restore the balances, modifying or restarting the Income Withholding Order (IWO) as necessary. If a custodial person (CP) bad debt had previously occurred as a result of the refund, the overpayment will be recovered automatically as the case balances are collected.