Compromise and adjustment.

CFR · 2024-01-01 · US · Title 7

Nonjudgment debts may be compromised or adjusted upon application of the debtor(s), or if the debtor is an individual and unable to act, upon application of the guardian, executor, or administrator of the debtor's estate. (a) (1) The debt or any extension thereof on which compromise or adjustment is requested is due and payable under the terms of the note or other instrument, or because of acceleration by written notice, prior to the date of application for settlement. (2) The period of time during which payments on adjustment offers are to be made cannot exceed five years without the approval of the Administrator. (3) Efforts will be made to avoid applications for settlement in which debtors offer a specified amount payable upon notice of approval of the proposed settlement. (b) (1) The debtor's total present income from all sources will be determined. In addition, careful consideration will be given to the probable sources, amount, and stability of income to be received over a reasonable period of years. For individuals, public welfare assistance and pensions, including old age pensions and pensions received by veterans for pensionable disabilities will not be considered as sources of funds with which to make compromise and adjustment offers. (2) The debtor's operation and maintenance expenses, and, in the case of individuals, probable living expenses. (3) The priority of payments on debts to third parties. (4) When the debtor is largely dependent on income from an occupati

official document · source cfr-2024 · id 7:§ 1956.124