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what does va benefit related indebtedness mean

by Mr. Darius Moen II Published 3 years ago Updated 2 years ago
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Beneficiaries who receive an indebtedness notice from VA stating that an overpayment has taken place have 60 days to submit a Notice of Disagreement with evidence stating why the overpayment information is incorrect. It is important to work with VA in this initial notification period before the debt moves to the next level.

To the best of his or her knowledge, the veteran loan applicant must record benefit-related indebtedness if: - An overpayment of VA education, compensation, or pension benefits occurred. - A VA education loan or direct VA home loan was defaulted. - Payment of a claim on a prior guaranteed home loan resulted in VA loss.

Full Answer

How to verify VA benefits?

You can also use this tool to check the status of a claim or appeal for other benefits like these:

  • VA health care
  • GI Bill or other education benefits
  • Veteran Readiness and Employment (VR&E)
  • A home loan Certificate of Eligibility (COE)
  • A Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant
  • Life insurance
  • A pre-need determination of eligibility to be buried in a VA national cemetery

Are VA benefits considered taxable income?

Disability benefits you receive from the Department of Veterans Affairs (VA) aren’t taxable. You don’t need to include them as income on your tax return. Tax-free disability benefits include: disability compensation and pension payments for disabilities paid either to veterans or their families; grants for homes designed for wheelchair living

What happens if I owe the VA money?

Understanding VA Foreclosures

  • When Foreclosure Is a Risk. The important thing to remember about VA loans is that the Department of Veterans Affairs (VA) doesn’t actually lend the money for VA loans.
  • VA Foreclosure and the SCRA. ...
  • When VA Foreclosure Hits. ...
  • Bottom Line. ...

What conditions qualify for VA disability benefits?

You may be able to get VA disability benefits for conditions such as:

  • Chronic (long-lasting) back pain resulting in a current diagnosed back disability
  • Breathing problems resulting from a current lung condition or lung disease
  • Severe hearing loss
  • Scar tissue
  • Loss of range of motion (problems moving your body)
  • Ulcers
  • Cancers caused by contact with toxic chemicals or other dangers

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How do I know if I have a VA indebtedness?

You can also check your VA debt balance by phone:For VA benefit debts, call our Debt Management Center at 800-827-0648 (or 1-612-713-6415 from overseas). ... For VA health care copay debt, call our Health Resource Center at 866-400-1238 or 800-698-2411. ... If you have hearing loss, call TTY: 711.

What happens when you owe the VA money?

The VA may withhold future benefits or send this to a collection agency. The VA can also garnish wages or file a suit in federal court. They are also able to withhold approval on a VA home loan. If you receive Social Security benefits, the VA may withhold these as well.

Do you have to pay back VA disability?

The VA calculates VA disability back pay based on your disability effective date, not on your application or approval date. You may also receive back pay if the VA approves your previously denied claim after a review or an appeal.

Why did I get a debt letter from the VA?

VA officials did not say how many veterans are impacted. The VA has begun sending out debt notification letters to affected veterans and will withhold debts from benefit payments beginning Jan. 1, 2022, if veterans do not make payment arrangements before that date, according to the release.

How do I get my VA debt forgiven?

You can request a waiver if you can't afford to repay your full debt balance—even with smaller monthly payments over time. We may grant a waiver for part or all of a VA debt. If we grant your waiver request, you won't have to repay the amount we agree to waive.

Can the VA ask for money back?

A veteran can request a VA overpayment waiver within 180 days from the date of VA's overpayment notice. If the waiver is requested within 30 days of the notice, VA should stay its collection of the debt until the request is resolved.

What is the VA 5 year rule?

The VA disability rating 5-year rule states that the U.S. Department of Veterans Affairs (VA) cannot reduce a veteran's disability rating if it has been in place for five years or more unless the condition shows sustained improvement over time. In this situation, the veteran's rating is considered a stabilized rating.

How long until VA disability is permanent?

Your condition is static (unchanging); Your condition has “persisted without material improvement for a period of five years or more” (i.e., stabilized rating); The “disability from disease is permanent in character and of such nature that there is no likelihood of improvement;”

Can I sell my VA disability payments?

The VA, which paid nearly $21.3 billion for disability compensation and pensions last year, prohibits the direct sale of its benefits. The agency also is barred from paying pensions or disability benefits to anyone other than a veteran, family member or legal guardian.

Can the VA take money from my bank account?

Generally no, debt collectors can't take your Social Security or VA benefits directly out of your bank account or prepaid card.

What is VA overpayment?

A VA overpayment is when a Veteran receives more VA benefits than he or she is entitled to and therefore must pay that extra money back to the Department of Veteran Affairs.

How do I know if my VA overpays?

The letter won't say how much the VA claims they overpaid you. A few weeks later you'll receive a notice from the VA Debt Management Center (DMC), which will tell you how much the VA believes was overpaid to you and notifies you that your forthcoming benefits will be withheld until the overpayment is paid back.

What happens when VA receives information from other federal agencies?

When this happens, a notice will be sent to the beneficiary explaining that a potential discrepancy was found, with a proposed reduction or discontinuance of benefits.

What happens if you can't resolve your debt?

If the debt cannot be resolved, it will be turned over to the Department of the Treasury for forced collection. In some cases, overpayments can be waived.

Can you waive eBenefits fraud?

Intentional fraud will not be waived. Veterans and other beneficiaries should check their eBenefits account to make sure the information is correct, and they should report any information that should be updated as soon as possible. This can either be done on the eBenefits web portal, or by calling 800-827-1000.

Can you get overpaid for VA benefits?

While most of the time there are no consequences, that is often not the case with VA benefits. There are any number of life events that can result in an overpayment to the VA, and these can result in changes in the amount of benefits you are entitled to receive. It is important to let VA know whenever there is a change that could impact your ...

What are the benefits of being a veteran?

Treat illnesses and injuries. Prevent future health problems. Improve your ability to function. Enhance your quality of life. All Veterans receive coverage for most care and services, but only some will qualify for added benefits like dental care. The full list of your covered benefits depends on:

What is VA approved walk in clinic?

This may include care at a VA-approved: Walk-in retail health clinic for minor illnesses like a sore throat or earache. Urgent care facility for more pressing (but not life-threatening) illnesses or injuries that require treatment like splinting, casting, or wound care.

Do veterans need to complete a financial assessment?

This will depend on factors like your income level, disability rating, and military service history. Most Veterans need to complete a financial assessment when they enroll. This helps us determine if you qualify for free VA health care. Learn more about VA copays.

Do you have to pay a VA copay if you live in Alaska?

You don't need us to approve (or "preauthorize") your care before you get treated, and. You don't need to pay a VA copay. If you live in A laska. You may be able to receive care through an Indian Health Service facility or Tribal Health facility even if you're not an eligible American Indian or Alaska Native Veteran.

What is VA Form 8937?

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What is a VA form 0748?

The form letter from the DMC should be accompanied by VA form 0748, which is a Notice of Rights and Obligations that explains the claimant’s options for appealing and requesting a waiver of a debt. If you dispute the debt, you must explain in writing why you dispute the validity of the debt or the amount of the debt.

Is receiving mail from the VA good news?

Receiving mail from the Department of Veterans Affairs (VA) may be a source of excitement for some folks, particularly when they are waiting for news of an initial VA decision. However, once a claimant is getting the correct monthly benefit, correspondence from the VA is generally not good news. Unfortunately, there are times when ...

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