Compromise offers require consideration of the:
Debtor's ability to repay the entire debt, and
Possibility of adjustment (i.e., current or future), and
Relationship of the compromise offer to the actual overpayment amount, and
Circumstances surrounding any prior compromise settlement, and
An offer which is 80 percent of the debt amount will always be accepted if SSA has
the authority to compromise (GN 02215.100B.).
Regardless of the amount offered, however, a degree of judgment must be used to determine
if the best possible offer has been negotiated and the most reasonable arrangement
Example:Debtor currently receiving benefits of $300 each month. He is overpaid $10,000 and
offers a compromise of $6,000, 60 percent of the debt amount. Since the entire amount
could be recovered within 3 years by adjustment, it would seem reasonable to reject
the compromise offer. On the other hand if the benefit amount is $100 each month,
it might be preferable to accept the compromise offer since it would take 5 years
to equal the $6,000 offer and more than 8 years to recover the entire debt.