Debt compliance

Infinance,the termdebt compliancedescribes variouslegalmeasures taken to ensure thatdebtors,whether individuals,businesses,orgovernments,honor theirdebtsand make an honest effort to repay the money that they owe. Generally regarded as a subdivision oftax law,debt compliance is most often enforced through a combination ofauditsand legal restrictions. For example, a provision of theFederal Debt Collection Procedures Act of 1990states that a person or organization indebted to the United States, against whom a judgmentlienhas been filed, is ineligible to receive a governmentgrant.Noncompliance, depending on severity and frequency, may be punished byfineor evenincarcerationindebtor's prison.