§ 1506.33. Under what circumstances will USADF compromise a claim?
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/us/cfr/t22/s§ 1506.33·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)USADF may compromise a claim pursuant to this section if the debtor does not have the financial ability to pay the full amount of the debt within a reasonable time, or the debtor refuses to pay the claim in full and the Government does not have the ability to enforce collection in full within a reasonable time by collection proceedings. In evaluating the acceptability of a compromise offer, the CFO may consider, among other factors, the following:
(1)Age and health of the debtor;
(2)Present and potential income;
(3)Inheritance prospects;
(4)The possibility that assets have been concealed or improperly transferred by the debtor;
(5)The availability of assets or income which may be realized by enforced collection proceedings; or
(6)The applicable exemptions available to the debtor under State and Federal law in determining the Government's ability to enforce collection.
(b)USADF may compromise a claim, or recommend acceptance of a compromise offer to DOJ, if:
(1)There is significant doubt concerning the Government's ability to prove its case in court for the full amount of the claim, either because of the legal issues involved or a bona fide dispute as to the facts; or
(2)The cost of collection does not justify the enforced collection of the full amount of the debt. The amount accepted in compromise in such cases will reflect the costs of collection, the probability of prevailing on the legal issues involved, and the likely amount of court costs and attorney's fees in litigation.
(c)To assess the merits of a compromise offer, USADF generally will require a current financial statement from the debtor, executed under penalty of perjury, showing the debtor's assets, liabilities, income and expenses.
(d)Statutory penalties, forfeitures or debt established as an aid to enforcement and compel compliance may be compromised where the CFO determines that the Agency's enforcement policy, in terms of deterrence and securing compliance (both present and future), will be adequately served by accepting the offer.