§761.406. Types of debt settlement.
7 C.F.R. § 761.406
Compromise. The Agency may compromise a debt owed to the Agency if the requirements of this subpart are met and:
The borrower pays a lump sum as a compromise for the remaining unsecured debt; and
The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt.
Adjustment. The Agency may settle a debt owed to the Agency through an adjustment agreement if the requirements of this subpart are met and:
The borrower agrees to pay the adjustment amount for a period of time not to exceed 5 years; and
The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt; and
The borrower provides documentation that funds are, or will be, available to pay the adjustment offer through its term.
Cancellation. The Agency may cancel a debt owed to the Agency if the requirements of this subpart are met and the application and supporting documents indicate that the borrower is unable to pay a compromise or adjustment offer.
Notes, amendments, and revision history
Source
Source: 85 FR 36691, June 17, 2020, unless otherwise noted.
Authority
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
Source
Source: 72 FR 63285, Nov. 8, 2007, unless otherwise noted.