# Justice Manual § 4-3.400: Consummation of Compromise of Claims of the United States—Generally

> Federal · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/JM_S4-3.400

## Section

- **Citation:** Justice Manual § 4-3.400
- **Heading:** Consummation of Compromise of Claims of the United States—Generally
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** DOJ Justice Manual / Title 4: Civil / 4-3.000 - Compromising And Closing / Justice Manual § 4-3.400

## Text

When a claim of the United States is compromised, the compromise should be effected and evidenced in the manner provided in this section and those that follow. No further evidence of settlement should be required, although a written settlement agreement between the debtor and the United States Attorney should be prepared. The scope of the compromise should be specifically limited to the immediate subject matter of the claim which was in fact compromised. In no case should a general release be issued to the debtor, since it is not possible to know whether the debtor owes debts to other agencies such as the Internal Revenue Service. If a compromise cannot be effected without the execution of a release, the release should be narrowly drawn, limited to the specific debt that is compromised, and should contain a specific reservation of the United States' right to proceed against other obligors.

If the compromise is made for the purpose of clearing title to a particular property, the release executed should be limited to the release of the United States' judgment lien or right of redemption as to that specific property. No release of a lien or a right of redemption should be executed without some appropriate consideration, even if the claim is questionable.

If a compromise is effected with less than all obligors, care should be taken to reserve the United States' right to proceed against, or collect from, the others. A covenant not to sue, containing a specific reservation of such right, is preferable to a release (even when specifically limited) in this situation.

[updated April 2018]

## Nearby sections

- [Justice Manual § 4-3.100 Pursuit of Claims Against Individuals](https://www.frixlaw.com/law-library/statutes/JM_S4-3.100.md)
- [Justice Manual § 4-3.110 Delegations of the Attorney General's Authority to Compromise and Close](https://www.frixlaw.com/law-library/statutes/JM_S4-3.110.md)
- [Justice Manual § 4-3.120 General Redelegation of the Attorney General's Authority to Compromise and Close](https://www.frixlaw.com/law-library/statutes/JM_S4-3.120.md)
- [Justice Manual § 4-3.200 Bases for the Compromising or Closing of Claims Involving the United States](https://www.frixlaw.com/law-library/statutes/JM_S4-3.200.md)
- [Justice Manual § 4-3.210 Compromising Claims Against a Going Business Concern](https://www.frixlaw.com/law-library/statutes/JM_S4-3.210.md)
- [Justice Manual § 4-3.220 Claims in Conjunction With Bankruptcy Code Proceedings](https://www.frixlaw.com/law-library/statutes/JM_S4-3.220.md)
- [Justice Manual § 4-3.230 Bases for Closing Claims Arising Out of Judgments in Favor of the United States by Returning Those Claims to the Client Agencies](https://www.frixlaw.com/law-library/statutes/JM_S4-3.230.md)
- [Justice Manual § 4-3.300 Memoranda by United States Attorney Explaining the Compromising or Closing of Claims Within the United States Attorney's Authority](https://www.frixlaw.com/law-library/statutes/JM_S4-3.300.md)
- [Justice Manual § 4-3.320 Memoranda Containing the United States Attorney's Recommendations for the Compromising or Closing of Claims Beyond His/Her Authority](https://www.frixlaw.com/law-library/statutes/JM_S4-3.320.md)
- [Justice Manual § 4-3.400 Consummation of Compromise of Claims of the United States—Generally](https://www.frixlaw.com/law-library/statutes/JM_S4-3.400.md)
- [Justice Manual § 4-3.410 Prohibition on Confidential Settlements](https://www.frixlaw.com/law-library/statutes/JM_S4-3.410.md)
- [Justice Manual § 4-3.412 Dismissal Where Suit Has Been Filed](https://www.frixlaw.com/law-library/statutes/JM_S4-3.412.md)
- [Justice Manual § 4-3.420 Consummation of Compromise of Judgments in Favor of the United States](https://www.frixlaw.com/law-library/statutes/JM_S4-3.420.md)
- [Justice Manual § 4-3.430 Payment of Compromises—Compromise Payable by Client Agency or Insurer](https://www.frixlaw.com/law-library/statutes/JM_S4-3.430.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/JM_S4-3.400. Check the current official text before relying on it. Not legal advice.