[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR30.19]



[Page 95]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 30_CLAIMS COLLECTION--Table of Contents

 

                     Subpart B_Collection of Claims

 

Sec.  30.19  Installment payments.



    The Secretary may enter into a written agreement with a debtor for 

payment of a debt in regular installments if payment in one lump sum, 

either by cash or offset, will cause the debtor extreme financial 

hardship. The debtor must submit sufficient information to determine his 

or her ability to pay. A request by a debtor for installment payment 

will delay initiation of offset under Sec.  30.15 only if the request is 

in writing, is accompanied by a statement with supporting documents 

indicating how the proposed offset would cause extreme financial 

hardship and, unless an extension is granted for good cause, is received 

by the Secretary no later than 15 days (unless otherwise provided by 

statute or regulation) from the date that notice of the proposed offset 

was mailed to the debtor. The Secretary will consider factors such as 

the amount of the debt, the length of the proposed repayment period, 

whether the debtor is willing to sign a confess-judgment note or give 

collateral, past dealings with the debtor and documentation indicating 

that the offset will cause the debtor extreme financial hardship and 

that the debtor will be financially capable of adhering to the terms of 

the agreement. The size and frequency of the payments will reasonably 

relate to the size of the debt and the debtor's present and future 

ability to pay. Whenever feasible, the installment agreement will 

provide for full payment of the debt, including interest and charges, in 

three years or less, and include a security or confess judgment 

provision. The full balance, including accrued interest, charges and 

penalties, will be immediately due and payable if the debtor defaults on 

any installment made pursuant to a repayment agreement. Interest under 

installment agreements will be payable at the applicable rate as 

provided in Sec.  30.13. When a debtor owes several debts and does not 

designate how an installment payment should be applied as among the 

various debts, the payment will be applied in accordance with Sec.  

30.15(f).



(Approved by the Office of Management and Budget under control number 

0990-0148)