Cancellation.

CFR · 2024-01-01 · US · Title 7

Nonjudgment debts may be canceled in the following instances: (a) (1) The FmHA or its successor agency under Public Law 103-354 employee in charge of the account furnishes a report and favorable recommendation concerning the cancellation. (2) There is no known security for the debt and the debtor has no other assets from which the debt could be collected. (3) The debtor is unable to pay any part of the debt and has no reasonable prospect of being able to do so. (b) (1) (i) There is no known security; and (ii) An administrator or executor has not been appointed to settle the debtor's estate and the financial condition of the estate has been investigated and it has been established that there is no reasonable prospect of recovery; or (iii) An administrator or executor has been appointed to settle the estate of the debtor; and (A) A final settlement has been made and confirmed by the probate court and the Government's claim was recognized properly and the Government has received all funds it was entitled to, or (B) A final settlement has not been made and confirmed by the probate court but there are no assets in the estate from which there is any reasonable prospect of recovery, or (C) Regardless of whether a final settlement has been made, there were assets in the estate from which recovery might have been affected but such assets have been disposed of or lost in a manner which OGC advises will preclude any reasonable prospect of recovery by the Government. (2) (3) (i) Chapter

official document · source cfr-2024 · id 7:§ 1956.70