(a) General. Any indebtedness of a veteran or the indebtedness of the spouse shall be waived only when the following factors are determined to exist:
(1) Following default there was a loss of the property which constituted security for the loan guaranteed, insured or made under chapter 37 of title 38 United States Code;
(2) There is no indication of fraud, misrepresentation, or bad faith on the part of the person or persons having an interest in obtaining the waiver; and
(3) Collection of such indebtedness would be against equity and good conscience.
(b) Spouse. The waiver of a veteran's indebtedness shall inure to the spouse of such veteran insofar as concerns said indebtedness, unless the obligation of the spouse is specifically excepted. However, the waiver of the indebtedness of the veteran's spouse shall not inure to the benefit of the veteran unless specifically provided for in the waiver decision.
(c) Surviving spouse or former spouse. A surviving spouse of a veteran or the former spouse of a veteran may be granted a waiver of the indebtedness provided the requirements of paragraph (a) of this section are met.
(d) Preservation of Government rights. In cases in which it is determined that waiver may be granted, the action will take such form (covenant not to sue, or otherwise) as will preserve the rights of the Government against obligors other than the veteran or the spouse.
(e) Application. A request for waiver of an indebtedness under this section shall be made within one year after the date on which the debtor receives, by Certified Mail-Return Receipt Requested, written notice from VA of the indebtedness. If written notice of indebtedness is sent by means other than Certified Mail-Return Receipt Requested, then there is no time limit for filing a request for waiver of indebtedness under this section.
(Authority: 38 U.S.C. 5302(b))
(f) Exclusion. Except as otherwise provided in this section, the indebtedness of a nonveteran obligor under the loan program is excluded from waiver.
(Authority: 38 U.S.C. 5302 (b) and (c))
[39 FR 26400, July 19, 1974, as amended at 44 FR 59907, Oct. 17, 1979; 57 FR 33875, July 31, 1992; 58 FR 3840, Jan. 12, 1993]
Notes of Decisions
Cited in
11
cases, 1991–1996 · leading case:
Butts v. Brown, 5 Vet. App. 532 (Vet. App. 1993).
Butts v. Brown, 5 Vet. App. 532 (Vet. App. 1993).
“§ 5302 (b) and 38 C.F.R. § 1.964 (a), in making a discretionary determination on an application for a waiver of indebtedness to a VA debtor, Smith (Barbara) v.”
Smith v. Derwinski, 1 Vet. App. 267 (Vet. App. 1991).
“§ 3102 (b); 38 C.F.R. § 1.964 (a)(2) (1990). The statutory phrase “equity and *279 good conscience,” without any other limiting or definitional statutory provisions, effectively commits decisions on requests for waivers to the discretion of the Secretary.”
Schaper v. Derwinski, 1 Vet. App. 430 (Vet. App. 1991).
“§ 5302 (b)) and 38 C.F.R. § 1.964 (a) (1990). Section 3102(b) and (c) provided at the time of the application for, and RO denial of, a waiver and until the enactment of section 311 of Pub.”
Parker v. Brown, 9 Vet. App. 476 (Vet. App. 1996).
“§ 5302 (b); 38 C.F.R. § 1.964 (a) (1995). In making this determination, consideration will be given to the following elements: (1) fault of the debtor; (2) balancing of faults between the debtor and VA; (3) undue hardship; (4) whether collection would defeat the purpose of the…”
Stone v. Derwinski, 2 Vet. App. 56 (Vet. App. 1992).
· cites it 2× “§ 5302 and 38 C.F.R. §§ 1.964 and 1.965 (1991). Travelstead v.”
Travelstead v. Derwinski, 1 Vet. App. 344 (Vet. App. 1991).
“§ 3102 (1988) and 38 C.F.R. §§ 1.964 and 1.965 (1990). This Court was originally asked to review the denial of appellant’s application for a waiver of the debt established against appellant pursuant to the VA home loan agreement that he signed in 1984.”
Bahnmiller v. Derwinski, 923 F.2d 1085 (4th Cir. 1991).
· cites it 2× “” 38 C.F.R. § 1.964 (a)(2). “Reasonableness and moderation” are the overriding considerations when considering a waiver request.”
East v. Brown, 8 Vet. App. 34 (Vet. App. 1995).
“§ 5302 ] and 38 C.F.R. §§ 1.964 and 1.965 (1990). Travelstead v.”
Kaplan v. Brown, 9 Vet. App. 116 (Vet. App. 1996).
· cites it 2× “§ 5302 (b); 38 C.F.R. § 1.964 (a)(3). The phrase “equity and good conscience means arriving at a fair decision between the obligor and the government.”
Elkins v. Derwinski, 2 Vet. App. 422 (Vet. App. 1992).
“§ 5302 (b)) and 38 C.F.R. § 1.964 (a). At the time of the application for, and VARO denial of, a waiver, section 3102(b) provided as follows: With respect to any loan guaranteed, insured, or made under chapter 37 of this title, the [Secretary] may waive payment of an…”
Green v. Derwinski, 1 Vet. App. 570 (Vet. App. 1991).
“The statute provided that two requirements must be met: (1) that the veteran not be guilty of “fraud, misrepresentation, material fault, or lack of good faith” in the creation of the debt, and (2) that collection of the debt by the VA would be “against equity and good…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.