Collection Actions: 10.2.12 Installment Plans and Other Compromises
Installment repayment plans are specifically authorized if the debtor documents an inability to pay in a lump sum.254 The regulation provides that the amounts and schedule of payments should bear a reasonable relation to the size of the debt and the debtor’s ability to pay.255 The regulations require that installment agreements provide for payment in full within three years, or less when possible.256