7 CFR § 1956.112 - Debts ineligible for settlement.

---
identifier: "/us/cfr/t7/s1956.112"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1956.112 - Debts ineligible for settlement."
title_number: 7
title_name: "Agriculture"
section_number: "1956.112"
section_name: "Debts ineligible for settlement."
chapter_name: "RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
subchapter_number: "H"
subchapter_name: "PROGRAM REGULATIONS"
part_number: "1956"
part_name: "DEBT SETTLEMENT"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; and 7 U.S.C. 1989."
regulatory_source: "51 FR 45434, Dec. 18, 1986, unless otherwise noted."
cfr_part: "1956"
---


# 1956.112 Debts ineligible for settlement.

Debts will not be settled:

(a) If referral to the Office of Inspector General (OIG) and/or to the OGC is contemplated or pending because of suspected criminal violation, or

(b) If civil action to protect the interests of the Government is contemplated or pending, or

(c) If an investigation for suspected fiscal irregularity is contemplated or pending, or

(d) When a claim has been referred to or a judgment has been obtained by the United States Attorney and the debtor requests settlement, the servicing official will explain to the debtor that the United States Attorney has exclusive jurisdiction over the claim or judgment, and therefore, Rural Devlopment has no authority to agree to a settlement offer. If the debtor wishes to make a settlement offer, it must be submitted with any related payment directly to the United States Attorney for consideration.