If a waiver of overpayment has been denied, can the debtor still offer a compromise settlement?

The rationale behind the correct answer is that even if a waiver of overpayment has been denied, the debtor still has the option to propose a compromise settlement. This means that the debtor can negotiate a lower amount to resolve their debt instead of paying the full amount owed. This provision is part of the policies that allow for flexibility in debt resolution processes, recognizing that the debtor's financial situation might warrant a settlement that differs from the original debt due to various factors such as financial hardship.

Other choices suggest limitations or conditions such as needing a change in circumstances or waiting a specific period, but in fact, the opportunity to offer a compromise settlement exists regardless of the waiver's status, thus allowing debtors to seek an agreement that may be more manageable for them.