If a veteran both challenges the validity of a debt assessed by the Department of Veterans Affairs (VA) and, in the alternative seeks waiver of such debt, must VA first fully adjudicate the debt validity issue, and the veteran exhaust all appeals on that issue, before waiver may be considered?

Held:

When a veteran both challenges the validity of a debt and seeks waiver of the debt, the Regional Office must first fully review the debt’s validity and, if the office believes the debt to be valid, prepare a written decision fully justifying the validity of the debt.  At that point, the veteran’s request for waiver should be referred to the Committee on Waivers and Compromises.  If waiver is denied, the veteran must be informed of his or her right to appeal both decisions to the Board of Veterans Appeals.