True or False: Debts in Currently Not Collectible (CNC) status are still eligible for collection by the U.S. Treasury.

True or False: Debts in Currently Not Collectible (CNC) status are still eligible for collection by the U.S. Treasury.

• A. True
• B. False
• C. Only if they surpass a certain amount
• D. Only after a review is conducted

Answer: (B)

Debts in Currently Not Collectible (CNC) status are considered uncollectible at that particular moment due to various reasons, such as the financial hardship of the individual or the unsuitability of collection efforts at that time. When a debt is classified as CNC, it means the agency has determined that pursuing further collection actions would not result in recovery. In this case, the statement is indeed false because once a debt is in CNC status, it is generally removed from the active collection processes, and thus, the U.S. Treasury does not pursue it. While it may be reassessed in the future, the CNC status serves to indicate that collection efforts will not be ongoing at the present time. Therefore, the correct understanding of CNC status is that the debts are no longer actively eligible for collection until there is a significant change in circumstances that prompts a reevaluation.

Debts in Currently Not Collectible (CNC) status are considered uncollectible at that particular moment due to various reasons, such as the financial hardship of the individual or the unsuitability of collection efforts at that time. When a debt is classified as CNC, it means the agency has determined that pursuing further collection actions would not result in recovery.

In this case, the statement is indeed false because once a debt is in CNC status, it is generally removed from the active collection processes, and thus, the U.S. Treasury does not pursue it. While it may be reassessed in the future, the CNC status serves to indicate that collection efforts will not be ongoing at the present time. Therefore, the correct understanding of CNC status is that the debts are no longer actively eligible for collection until there is a significant change in circumstances that prompts a reevaluation.