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7.10.1 Overview may not be possible for the debtor to repay the debt in a lump sum. Every effort should be made to negotiate a full settlement before accepting payment by instalments. If this is clearly not possible, instalments may be accepted and the rate of repayment negotiated taking into account the debtor's financial circumstances. D2708 and D2589 (where appropriate) should be sent to the debtor for completion prior to negotiating an instalment rate. The details provided by the debtor will enable the Department to assess the debtor's financial situation and capacity to repay the debt. The debtor should be asked to repay as much of the debt as possible out of available funds, if they have the capacity to repay a part lump sum. The balance is then recovered by instalments. it is recommended that a recovery plan be used to recover a negative payability, the recovery amount and length of recovery may be calculated by applying the formulated rate calculator. An officer of the Department with appropriate delegations may approve an instalment rate less than either amount in cases of financial hardship. The person's financial details provided on Form D2708 form the basis on which the delegate would approve the reduction. limitation rate may not be realistic after considering the debtor's financial circumstances. Any assessment of the debtor's capacity to repay should take into account the amount of income available after reasonable expenses. the debtor has no independent income or assets, their partner may agree to assist in recovery. This may mean that recovery is not possible at this stage, and the debt may have to be written off or deferred for recovery at a later date.