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      How to handle disputed debts

How to handle disputed debts A disputed debt is a bona fide disagreement between the creditor and the committee as to the existence of a debt or the amount owed by the committee. Until the creditor and committee resolve the dispute (assuming the creditor did provide something of value), the committee must disclose: The amount the committee admits it owes;The amount the creditor claims is owed; andAny amounts the committee has paid the creditor. When filing a debt settlement plan, a terminating committee must describe the nature of the dispute and the committee’s efforts to resolve it on Part II of Form 8. The committee may also note that the disclosure of a disputed debt does not constitute an admission of liability or a waiver of any claims the committee may have against the creditor.
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          Debts owed by party committeesEstimating debtsHow to handle unpayable debtsSettling debts for less than the amount owed Need help? Get help from the FEC by phone or email
 Legal citations Regulations 11 CFR 116.10Disputed debts


This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


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