[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR11.50]

[Page 125]
 
              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. 11.50  Standards for compromise of debts.

    (a) Compromise. (1) A debt may be compromised if:
    (i) The debtor is not able to pay the full amount within a 
reasonable period of time;
    (ii) If the debtor refuses to pay the debt in full and the Agency is 
unable to enforce collection within a reasonable time by enforced 
collection proceeding;
    (iii) If there is real doubt concerning the Agency's ability to 
prove its case in court for the full amount claimed;
    (iv) If the cost of collecting the debt does not justify the 
enforced collection of the full amount;
    (v) If, in connection with statutory penalties or forfeitures 
established as an aid to enforcement and to compel compliance, the 
Agency's enforcement policy will be adequately served by acceptance of 
the sum to be agreed upon; or
    (vi) For other reasons deemed valid by the ACO after consultation 
with the General Counsel. The Standards set forth in 4 CFR 103.3 through 
103.9 should be used.
    (2) Inability to pay. If a debtor is unable to pay the full amount 
of the debt within a reasonable time or if the debtor refuses to pay and 
the Government is unable to collect the amount of the debt through 
enforcement proceedings then the Agency may compromise the claim either 
in whole or in part. The ACO may require that the debtor provide sworn 
information as to assets, actual or potential sources of income, 
liabilities and other financial data. The standards set forth in the 
GAO, Department of Justice guidelines prescribed in 4 CFR 103.2 should 
be used.
    (3) Compromises payable in installments will not normally be 
permitted by the Agency only if the debtor shows that full, immediate 
payment is impossible.
    (4) Litigative probabilities. If there is a bona fide dispute as to 
facts or if there is a valid legal defense raised which may limit or 
eliminate the possibility of recovery, then the Agency Collections 
Officer may, after receiving a legal analysis from the General Counsel, 
compromise the action in whole or in part.
    (b) Documentary evidence of compromise. No compromise of a debt 
shall be final or binding on the Agency unless it is in writing and 
signed by the appropriate officer who has authority to compromise the 
claim pursuant to this subpart.
    (c) Authority. Only the ACO may compromise debts of more than 
$2,500. Debts of $2,500 or less may be compromised by the ACO or the 
DCO. Debts exceeding $100,000 or such other limit prescribed by the 
Attorney General in accordance with 31 U.S.C. 3711(a)(2) may be 
compromised only after approval by the Department of Justice in 
accordance with 4 CFR 103.1(b).

[49 FR 38267, Sept. 28, 1984, as amended at 53 FR 47212, Nov. 22, 1988; 
57 FR 54715, Nov. 20, 1992]