[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR2506.19]

[Page 565-566]
 
                        TITLE 45--PUBLIC WELFARE
 
       CHAPTER XXV--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
 
PART 2506_COLLECTION OF DEBTS--Table of Contents
 
                      Subpart B_General Provisions.
 
Sec. 2506.19  How can I resolve my debt through voluntary repayment?

    (a) In response to a notice of debt, you may propose to the 
Corporation that you be allowed to repay the debt through a voluntary 
repayment agreement in lieu of the Corporation taking other collection 
actions under this part.
    (b) Your request to enter into a voluntary repayment agreement must:
    (1) Be in writing;
    (2) Admit the existence of the debt; and
    (3) Either propose payment of the debt (together with interest, 
penalty charges, and administrative costs) in a lump sum, or set forth a 
proposed repayment schedule.
    (c) The Corporation will collect debts in one lump sum whenever 
feasible. However, if you are unable to pay your debt in one lump sum, 
the Corporation

[[Page 566]]

may accept payment in regular installments that bear a reasonable 
relationship to the size of the debt and your ability to pay. If 
possible, the installment payments should be sufficient in size and 
frequency to liquidate the debt in three years or less.
    (d) The Corporation will consider a request to enter into a 
voluntary repayment agreement in accordance with the FCCS. The Chief 
Executive Officer may request additional information from you, including 
financial statements if you request to make payments in installments, in 
order to determine whether to accept a voluntary repayment agreement. It 
is within the Chief Executive Officer's discretion to accept a repayment 
agreement instead of proceeding with other collection actions under this 
part, and to set the necessary terms of any voluntary repayment 
agreement. No repayment agreement will be binding on the Corporation 
unless it is in writing and signed by both you and the Chief Executive 
Officer. At the Corporation's option, you may be required to provide 
security as part of the agreement to make payments in installments. 
Notwithstanding the provisions of this section, 31 U.S.C. 3711 will 
govern any reduction or compromise of a debt.