7 CFR 1752.19: Debt settlement.

Debts will not be settled directly by the Agency if:

(a) Referral to the Office of Inspector General and/or to Office of General Counsel is contemplated or pending because of suspected criminal violation;

(b) Civil action to protect the interest of the Government is contemplated or pending;

(c) An investigation for suspected fiscal irregularity is contemplated or pending;

(d) The Borrower is uncooperative in resolving the delinquency or the Agency has reason to believe the Borrower is not acting in good faith; or

(e) The debt has been referred to the Department of Justice, such as in bankruptcy proceedings.