What is the minimum dollar amount for a debt to be eligible for referral to the U.S. Treasury?

What is the minimum dollar amount for a debt to be eligible for referral to the U.S. Treasury?

• A. $10.00
• B. $25.00
• C. $50.00
• D. $100.00

Answer: (B)

The minimum dollar amount for a debt to be eligible for referral to the U.S. Treasury is $25. This threshold is established to ensure that only debts of a significant enough value are processed through the Treasury for collection actions. Slightly lower amounts might not justify the administrative costs associated with pursuing recovery through federal channels, which is why the $25 minimum is a practical standard. This amount represents a balance between efficiency in debt collection practices and the need to focus resources on recoverable debts. Thus, debts of $25 or more can be officially recognized and acted upon in accordance with federal debt collection policies.

The minimum dollar amount for a debt to be eligible for referral to the U.S. Treasury is $25. This threshold is established to ensure that only debts of a significant enough value are processed through the Treasury for collection actions. Slightly lower amounts might not justify the administrative costs associated with pursuing recovery through federal channels, which is why the $25 minimum is a practical standard. This amount represents a balance between efficiency in debt collection practices and the need to focus resources on recoverable debts. Thus, debts of $25 or more can be officially recognized and acted upon in accordance with federal debt collection policies.