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VA Debt




Debt to the government is very serious business.

First, the terms. Most debt is created by overpayment. Overpayment may occur through an error by you or by the government. Either way, it doesn't matter. Once an overpayment is alleged and the government believes that a debt has been created, they will notify you that they want their money back right now.

That a debt was created because of government error does not absolve you of the debt. In most cases, the government will insist you pay the debt once it is established.

The usual routine that occurs is that the veteran will find a letter in his or her mail that notifies them of the alleged debt.

The letters I've seen are often vague with few facts and a few are very precise and state the case clearly.

All of these notices will demand payment in full. They will also notify you of your rights of appeal.

This is the moment most veterans make their first and most damaging mistake...they don't read the letter.

The veteran has numerous rights of appeal. All options for the veteran are "timely". This is very simple to understand; The veteran must take precise actions within clearly defined time periods.

If the veteran does as instructed, there is a greater opportunity to interrupt the debt collection process. Following the instructions and acting within the defined time periods will put the veteran in charge of the entire process. Anything less defaults to the government and the veteran will find that he or she will have almost no control.

For example, the veteran may receive a notice that an overpayment has occurred due to both a pension payment and a compensation payment being made to the vet for a period of time.

The notice will talk about the overpayment and that the government wants a repayment.

There will be a notice that informs the veteran that should he or she disagree with any of this, they may appeal. Appeals must be in writing and must be properly worded.

An appeal letter must be mailed within 30 days of receipt of the notice of the debt. That is the Notice of Disagreement (NOD) that tells the government that you are disagreeing with their proposal.

The letter must state that, "I am notifying you that I disagree with your notice of (date)."

Further, your letter should tell the government that "I request that you make no changes to my payments until such time as all my appeals are exhausted. I wish for a personal hearing before you to review and discuss this matter."

Then you should state, "I request that my issues are reviewed by the Committee on Waivers and Compromises as soon as practicable. It is my desire that this alleged debt be waived in total as any attempt to collect from me will result in severe hardship that will be harmful to my health."

Once you have that letter written, it must be mailed via certified mail, return receipt requested. The letter should be as brief as possible. This is not the time to present your case that the debt is wrong, this letter is only to exercise all your rights.

You will have plenty of time to argue your case once you post this letter. The Committee wil want a financial statement from you and thete may be a long delay prior to a personal hearing. You bought all this time by your swift response.

DO NOT call the toll free number. DO NOT query the IRIS system. DO NOT run around seeking help from everyone you can think of.

There is only one step to take: Write the letter and get it posted in certified mail. Then wait. Nothing more.

Should you not do this, the system is as automatic as a row of dominoes falling over. The Regional Office that notified you of the debt will turn the case over to The Debt Management Center.

At that moment you've reached a special level of Hell guaranteed to make the first dealings with your Regional Offices look warm and friendly.

You'll discover that the Debt Management Center (DMC) believes that because the RO gave them your case for resolution (collection) that you owe the money. As far as they're concerned, that decision was made at the RO. If you now choose to disagree, the DMC will tell you to deal with your RO. Your RO will tell you that it's in the hands of the DMC.

What happens then?

The DMC begins to deduct all they are able to from your monthly check. If you aren't cooperating with extra payments and communicating effectively, they may quickly sell your account to a contracted debt collection agency.

The collection agency is allowed to begin to add late fees and a whopping interest to past due amounts. It isn't uncommon for that interest to exceed 20% and more...much more.

When you get the notice, read it carefully, write the letter.

You may have created a debt when;

You "double dipped";

Concurrent Receipt

You are a Fugitive Felon



Student Loan Debt for the Permanently and Totally Disabled veteran

In August 2008, the Higher Education Opportunity Act (HEOA) made changes to the Higher Education Act that establish a separate process for determining whether certain veterans are totally and permanently disabled.

Veteran borrowers will be considered totally and permanently disabled for purposes of this discharge if the veteran provides documentation from the U.S. Department of Veterans Affairs showing that the veteran has been determined to be unemployable due to a service-connected condition.




Debt
(Also see Garnishment)

Debt to the government is very serious business.

First, the terms. Most debt is created by overpayment. Overpayment may occur through an error by you or by the government. Either way, it doesn't matter. Once an overpayment is alleged and the government believes that a debt has been created, they will notify you that they want their money back right now.

That a debt was created because of government error does not absolve you of the debt. In most cases, the government will insist you pay the debt once it is established.

The usual routine that occurs is that the veteran will find a letter in his or her mail that notifies them of the alleged debt.



The letters I've seen are often vague with few facts and a few are very precise and state the case clearly.

All of these notices will demand payment in full. They will also notify you of your rights of appeal.

This is the moment most veterans make their first and most damaging mistake...they don't read the letter.

The veteran has numerous rights of appeal. All options for the veteran are "timely". This is very simple to understand; The veteran must take precise actions within clearly defined time periods.

If the veteran does as instructed, there is a greater opportunity to interrupt the debt collection process. Following the instructions and acting within the defined time periods will put the veteran in charge of the entire process. Anything less defaults to the government and the veteran will find that he or she will have almost no control.

For example, the veteran may receive a notice that an overpayment has occurred due to both a pension payment and a compensation payment being made to the vet for a period of time.

The notice will talk about the overpayment and that the government wants a repayment.

There will be a notice that informs the veteran that should he or she disagree with any of this, they may appeal. Appeals must be in writing and must be properly worded.

An appeal letter must be mailed within 30 days of receipt of the notice of the debt. That is the Notice of Disagreement (NOD) that tells the government that you are disagreeing with their proposal.

The letter must state that, "I am notifying you that I disagree with your notice of (date)."




Further, your letter should tell the government that "I request that you make no changes to my payments until such time as all my appeals are exhausted. I wish for a personal hearing before you to review and discuss this matter."

Then you should state, "I request that my issues are reviewed by the Committee on Waivers and Compromises as soon as practicable. It is my desire that this alleged debt be waived in total as any attempt to collect from me will result in severe hardship that will be harmful to my health."

Once you have that letter written, it must be mailed via certified mail, return receipt requested. The letter should be as brief as possible. This is not the time to present your case that the debt is wrong, this letter is only to exercise all your rights.

You will have plenty of time to argue your case once you post this letter. The Committee wil want a financial statement from you and thete may be a long delay prior to a personal hearing. You bought all this time by your swift response.

DO NOT call the toll free number. DO NOT query the IRIS system. DO NOT run around seeking help from everyone you can think of.

There is only one step to take: Write the letter and get it posted in certified mail. Then wait. Nothing more.

Should you not do this, the system is as automatic as a row of dominoes falling over. The Regional Office that notified you of the debt will turn the case over to The Debt Management Center.

At that moment you've reached a special level of Hell guaranteed to make the first dealings with your Regional Offices look warm and friendly.

You'll discover that the Debt Management Center (DMC) believes that because the RO gave them your case for resolution (collection) that you owe the money. As far as they're concerned, that decision was made at the RO. If you now choose to disagree, the DMC will tell you to deal with your RO. Your RO will tell you that it's in the hands of the DMC.

What happens then?

The DMC begins to deduct all they are able to from your monthly check. If you aren't cooperating with extra payments and communicating effectively, they may quickly sell your account to a contracted debt collection agency.

The collection agency is allowed to begin to add late fees and a whopping interest to past due amounts. It isn't uncommon for that interest to exceed 20% and more...much more.

When you get the notice, read it carefully, write the letter.

You may have created a debt when;

You "double dipped";
Concurrent Receipt

You are a Fugitive Felon

Fugitive Felon

Fugitive Felon

Fugitive Felon






Student Loan Debt for the Permanently and Totally Disabled veteran

In August 2008, the Higher Education Opportunity Act (HEOA) made changes to the Higher Education Act that establish a separate process for determining whether certain veterans are totally and permanently disabled.

Veteran borrowers will be considered totally and permanently disabled for purposes of this discharge if the veteran provides documentation from the U.S. Department of Veterans Affairs showing that the veteran has been determined to be unemployable due to a service-connected condition.