---
kind: "section"
citation: "32 C.F.R. § 842.87"
title: "32"
number: "842.87"
heading: "Compromise, termination, and suspension of collection."
url: "https://uscodex.org/cfr/32/842.87"
---

# §842.87. Compromise, termination, and suspension of collection.


This section establishes the guidelines for compromise, termination, or suspension of a claim.

- (a) **Compromise of a claim is allowable when—**
  - (1) **The tort-feasor is unable to pay the full amount within a reasonable time.** (A sworn statement showing the debtor's assets and liabilities, income, expenses, and insurance coverage should be obtained and included in the claim file).
  - (2) The Government is unable to collect a claim in full within a reasonable time even though the enforced collection proceedings are used for collection.
  - (3) **The cost to collect does not justify enforced collection of the full amount.**
  - (4) The government may have difficulty proving its case in court for the full amount claimed.
- (b) Compromise is not allowable when there may be fraud, misrepresentation, or violation of antitrust laws. The Department of Justice must authorize compromise of such claims.
- (c) **Termination of collection is allowable when—**
  - (1) **The government is unable to collect the debt after exhausting all collection methods.**
  - (2) **The government is unable to locate the tort-feasor.**
  - (3) The cost to collect will exceed recovery.
  - (4) **The claim is legally without merit.**
  - (5) **The evidence does not substantiate the claim.**
- (d) **Suspension of collection is allowable when—**
  - (1) **The government is unable to locate tort-feasor.**
  - (2) **The tort-feasor is presently unable to pay but—**
    - (i) **The statute of limitations is tolled or is running anew.**
    - (ii) Future collection may be possible.

## Notes

### Amendments

[55 FR 2809, Jan. 29, 1990. Redesignated at 81 FR 83696, Nov. 22, 2016]

### Source

Source: 55 FR 2809, Jan. 29, 1990. Redesignated at 81 FR 83696, Nov. 22, 2016, unless otherwise noted.

### Authority

Authority: Sec. 8013, 100 Stat. 1053, as amended; 10 U.S.C. 8013, except as otherwise noted.

### Source

Source: 55 FR 2809, Jan. 29, 1990, unless otherwise noted.

### Amendments

[81 FR 83688, Nov. 22, 2016]

### Amendments

[55 FR 2809, Jan. 29, 1990. Redesignated at 81 FR 83696, Nov. 22, 2016]