{"data":{"id":"us/7-cfr-761.406","jurisdiction":"us","citation":"7 CFR 761.406","heading":"Types of debt settlement.","body":"(a) Compromise. The Agency may compromise a debt owed to the Agency if the requirements of this subpart are met and:\n(1) The borrower pays a lump sum as a compromise for the remaining unsecured debt; and\n(2) The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt.\n(b) Adjustment. The Agency may settle a debt owed to the Agency through an adjustment agreement if the requirements of this subpart are met and:\n(1) The borrower agrees to pay the adjustment amount for a period of time not to exceed 5 years; and\n(2) The amount is reasonable based on the Agency's determination of what the borrower can pay to settle the debt; and\n(3) The borrower provides documentation that funds are, or will be, available to pay the adjustment offer through its term.\n(c) Cancellation. The Agency may cancel a debt owed to the Agency if the requirements of this subpart are met and the application and supporting documents indicate that the borrower is unable to pay a compromise or adjustment offer.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE","SUBCHAPTER D—SPECIAL PROGRAMS","PART 761—FARM LOAN PROGRAMS; GENERAL PROGRAM ADMINISTRATION","Subpart F—Farm Loan Programs Debt Settlement"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"4cad02ae64b5de5196ac109937a53a3844b420285d9fdfe6fa1c927d77ec4a2e","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-761.405","next":"us/7-cfr-761.407"},"notice":"GroundRules: Original legal text. Not legal advice."}