[Code of Federal Regulations]
[Title 29, Volume 4]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR1450.12]

[Page 83]
 
                             TITLE 29--LABOR
 
         CHAPTER XII--FEDERAL MEDIATION AND CONCILIATION SERVICE
 
PART 1450_COLLECTIONS OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Subpart B_Administrative Offset_Consumer Reporting Agencies_Contracting 
                             for Collection
 
Sec.  1450.12  Collection in installments.

    (a) Whenever feasible, and except as otherwise provided by law, 
debts owed to the United States, together with interest, penalties, and 
administrative costs as required by this regulation should be collected 
in full in one lump sum. This is true whether the debt is being 
collected by administrative offset or by another method, including 
voluntary payment. However, if the debtor is financially unable to pay 
the indebtedness in one lump sum, payment may be accepted in regular 
installments. FMCS will obtain financial statements from debtors who 
represent that they are unable to pay the debt in one lump sum. If FMCS 
agrees to accept payment in regular installments it will obtain a 
legally enforceable written agreement from the debtor which specifies 
all of the terms of the arrangement and which contains a provision 
accelerating the debt in the event the debtor defaults. The size and 
frequency of installment payments should bear a reasonable relation to 
the size of the debt and the debtor's ability to pay. If possible, the 
installment payments should be sufficient in size and frequency to 
liquidate the Government's claim in not more than 3 years. Installment 
payments of less than $50 per month will be accepted only if justifiable 
on the grounds of financial hardship or some other reasonable cause.
    (b) If the debtor owes more than one debt and designates how a 
voluntary installment payment is to be applied as among those debts, 
that designation must be followed. If the debtor does not designate the 
application of the payment, FMCS will apply payments to various debts in 
accordance with the best interests of the United States, as determined 
by the facts and circumstances of the particular case, paying special 
attention to applicable statutes of limitations.