[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR11.35]

[Page 117]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY
 
PART 11--CLAIMS--Table of Contents
 
    Subpart C--Collection of Debts by the Government Under the Debt 
                         Collection Act of 1982
 
Sec. 11.35  Authority of offices to compromise debts or suspend or 
terminate collection action.

    Where it appears that the cost of collecting a debt of $2,500 or 
less will exceed the amount of recovery, the DCO is authorized to 
compromise the debt or to terminate collection action. Further, DCO's 
are authorized to compromise a debt or terminate or suspend collection 
action for debts of $2,500 or less where:
    (a) Debtor cannot be located despite vigorous efforts, including but 
not limited to, use of skip tracing services, have failed to ascertain 
the debtor's current address.
    (b) Debtor is financially unable to pay in full or in part. DCO's 
must obtain a financial statement from the debtor in such cases.
    (c) The debt is without merit or cannot be substantiated by 
evidence. In such cases, debt collection officers should secure the 
advice of counsel. DCO's must document the debt file to show all 
evidence and reasons for compromise or termination of such debts. The 
DCO must prepare a narrative report and forward a copy of the report to 
the ACO.

[49 FR 38267, Sept. 28, 1984, as amended at 53 FR 47211, Nov. 22, 1988]