What happens at the Day 61 deadline in the debt management process?

At the Day 61 deadline in the debt management process, the issuance of a second billing notice and demand letter is a critical step. This action serves to formally remind the debtor of their outstanding payment obligation and prompts them to take immediate action to avoid further penalties or potential escalation of the debt recovery process.

This second notice indicates that the debtor has not responded to the initial notice and reinforces the seriousness of the situation. It is designed to encourage payment before additional actions are taken, such as referring the debt to the Treasury or pursuing more severe recovery methods.

Sending this notice helps to ensure that the debtor is fully aware of the consequences of continued non-payment, which could include further financial obligations or implications. The process is meant to provide clarity and a final opportunity for resolution before moving forward to more stringent measures.