Section 1018.51 - Reasons for compromising a claim(a) A claim may be compromised for one or more reasons set forth below:(1) The full amount cannot be collected because:(i) The debtor is unable to pay the full amount within a reasonable time; or(ii) The debtor refuses to pay the claim in full, and the Government is unable to enforce collection in full within a reasonable time; or(2) There is a real doubt concerning the Government's ability to prove its case in Court for the full amount claimed, either because of the legal issues involved or a bona fide dispute as to the facts; or(3) The costs of collecting the claim do not justify the enforced collection of the full amount. The Board shall apply this reason for compromise in accordance with the guidelines in 31 CFR 902.2 .(b) The Board shall determine the debtor's inability to pay, the Government's ability to enforce collection, and the amounts which are acceptable in compromise in accordance with the Federal Claims Collection Standards, 31 CFR part 902.(c) Compromises payable in installments are discouraged, but, if necessary, must be in the form of a legally enforceable agreement for the reinstatement of the prior indebtedness less sums paid thereon. The agreement also must provide that in the event of default:(1) The entire balance of the debt becomes immediately due and payable; and(2) The Government has the right to enforce any security agreement.58 FR 7749, Feb. 9, 1993, as amended at 81 FR 8852 , Feb. 23, 2016 As amended at 81 FR 8851 , 2/23/2016