Types of debt settlement.

CFR · 2024-01-01 · US · Title 7

(a) (1) The borrower pays a lump sum as a compromise for the remaining unsecured debt; and (2) The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt. (b) (1) The borrower agrees to pay the adjustment amount for a period of time not to exceed 5 years; and (2) The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt; and (3) The borrower provides documentation that funds are, or will be, available to pay the adjustment offer through its term. (c)

official document · source cfr-2024 · id 7:§ 761.406