7 CFR 1403.15 - Discharge of debts.
(1) When an obligation or part thereof is discharged in bankruptcy;
(2) When an obligation or part thereof is the subject of a final judgment entered by a court of competent jurisdiction which is adverse to CCC;
(3) When a debt or part thereof is compromised and paid, the amount of such compromise;
(1) The delinquent debt is owed by an entity which has been liquidated or dissolved and no legal remedy is feasible.
(2) The delinquent debt is owed by an individual who:
(i) Is declared legally insane or incompetent;
(ii) Possessed of no assets or other means of payment; and
(iii) Possessed of no reasonable prospects of being able to pay the debt in the future.
(3) The delinquent debt was incurred by an individual who is deceased, and from whose estate recovery cannot be made.
(d) Debts discharged in accordance with this section may be reported to the Internal Revenue Service pursuant to § 1403.19.