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Code of Federal Regulations Title 7. Agriculture § 7.761.406 Types of debt settlement

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) Compromise. The Agency may compromise a debt owed to the Agency if the requirements of this subpart are met and:

(1) The borrower pays a lump sum as a compromise for the remaining unsecured debt;  and

(2) The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt.

(b) Adjustment. The Agency may settle a debt owed to the Agency through an adjustment agreement if the requirements of this subpart are met and:

(1) The borrower agrees to pay the adjustment amount for a period of time not to exceed 5 years;  and

(2) The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt;  and

(3) The borrower provides documentation that funds are, or will be, available to pay the adjustment offer through its term.

(c) 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.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.761.406 Types of debt settlement - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-761-406/

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