Will LFO billing statements automatically recommence once a payment is received on a bill that was previously determined to be "stale" and the LFO Override Flag set to N (No)?

No.  Courts must change the LFO Override Flag from N (No) to B (Bill).

Accounts receivables with no payments since January 2006 were placed in a billing override status.  These bills would not be included in the bi-monthly LFO statement preparation and mailing.  When a payment is received on an overridden account, the court must make changes to the Case Obligation Screen (COS) in order to trigger the LFO billing statement sent by the AOC.  

For the AOC to generate statements, the Case Obligation Status Screen (COS) must include the following information:

Payment Amount
Frequency = M (Monthly)
Payment Start Date
If the Payment Start Date is a future date, the case is not eligible until after that date.
Collection Status Code = L (LFO Billing)
LFO Ovride = B  

Note: Some of the delinquent collection status codes (S,1,2,3,N) also permit LFO billing.

Additional information may be found in the Overview of LFO Billing Process in the JIS Online Manual.  

RN id: 2193