(a) The Department of Labor agency responsible for collecting the
claim shall afford the debtor the opportunity to repay the debt or enter
into a repayment plan which is agreeable to the agency head (or
designee) and is in a written form signed by such debtor. The head of
the agency (or designee) may deem a repayment plan to be abrogated if
the debtor should, after the repayment plan is signed, fail to comply
with the terms of the plan.
(b) Agencies have discretion and should exercise sound judgment in
determining whether to accept a repayment agreement in lieu of offset.
The determination should balance the Government's interest in collecting
the debt against fairness to the debtor. If the debt is delinquent and
the debtor has not disputed its existence or amount, an agency should
effect an offset unless the debtor is able to establish that offset
would result in undue financial hardship or would be against equity and
good conscience.
