[Code of Federal Regulations]

[Title 44, Volume 1]

[Revised as of October 1, 2006]

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]