[Code of Federal Regulations]
[Title 45, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR30.19]

[Page 93-94]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
PART 30--CLAIMS COLLECTION--Table of Contents
 
                     Subpart B--Collection of Claims
 
Sec. 30.19  Installment payments.

    The Secretary may enter into a written agreement with a debtor for 
payment of a debt in regular installments if payment in one lump sum, 
either by cash or offset, will cause the debtor extreme financial 
hardship. The debtor must submit sufficient information to determine his 
or her ability to pay. A request by a debtor for installment payment 
will delay initiation of offset under Sec. 30.15 only if the request is 
in writing, is accompanied by a statement with supporting documents 
indicating how the proposed offset would cause extreme financial 
hardship and, unless an extension is granted for good cause, is received 
by the Secretary no later than 15 days (unless otherwise provided by 
statute or regulation) from the date that notice of the proposed offset 
was mailed to the debtor. The Secretary will consider factors such as 
the amount of the debt, the length of the proposed repayment period, 
whether the debtor is willing to sign a confess-judgment note or give 
collateral, past dealings with the debtor and documentation indicating 
that the offset will cause the debtor extreme financial hardship and 
that the debtor will be financially capable of adhering to the terms of 
the agreement. The size and

[[Page 94]]

frequency of the payments will reasonably relate to the size of the debt 
and the debtor's present and future ability to pay. Whenever feasible, 
the installment agreement will provide for full payment of the debt, 
including interest and charges, in three years or less, and include a 
security or confess judgment provision. The full balance, including 
accrued interest, charges and penalties, will be immediately due and 
payable if the debtor defaults on any installment made pursuant to a 
repayment agreement. Interest under installment agreements will be 
payable at the applicable rate as provided in Sec. 30.13. When a debtor 
owes several debts and does not designate how an installment payment 
should be applied as among the various debts, the payment will be 
applied in accordance with Sec. 30.15(f).

(Approved by the Office of Management and Budget under control number 
0990-0148)