When the VA Says You Owe Them: Defending Against Overpayment and Recoupment

Congruence Law, P.C. Helps Veterans Challenge VA Debt and Protect Their Hard-Earned Benefits

For veterans relying on monthly compensation, housing stipends, or pension payments, receiving a debt notice from the Department of Veterans Affairs can be shocking—and confusing. These notices often allege that the VA overpaid you months or even years ago, and now wants thousands of dollars back. But in many cases, the debt is the result of VA error, inadequate notice, or confusing procedural changes, not anything the veteran did wrong.

At Congruence Law, P.C., we help veterans fight back against VA overpayment claims and recoupment actions, pursue waivers based on fairness and financial hardship, and ensure that erroneous debts are properly challenged and resolved.

What Is a VA Overpayment?

A VA overpayment occurs when the VA claims that it paid you more benefits than you were entitled to—often due to:

• Delayed reporting of a change in marital status, dependents, or income

• Concurrent receipt of VA and military retirement or separation pay

• Retroactive rating adjustments

• Education benefits (e.g., VA housing stipend overpayments under the GI Bill)

• Administrative errors or benefit terminations not properly communicated

Once the VA flags an overpayment, it will typically issue a debt notice through the Debt Management Center (DMC), followed by collection efforts—potentially including withholding future VA payments or referring the debt to the Treasury Department.

Legal Rights and Options for Challenging VA Debt

Veterans have the right to contest both the validity of the debt and the requirement to repay it. At Congruence Law, we help clients pursue all available avenues, including:

1. Challenging the Validity of the Debt

We evaluate whether the VA’s debt was based on faulty accounting, miscommunication, or administrative error. If the debt is wrong or duplicative, we file a dispute and demand a full review of the records.

2. Requesting a Waiver of Overpayment

Even if the debt is valid, veterans may request a waiver, arguing that:

• They were not at fault in creating the debt; and

• Repayment would create financial hardship or be against equity and good conscience

We help submit VA Form 5655 (Financial Status Report) along with supporting evidence to demonstrate undue burden.

3. Seeking a Compromise or Repayment Plan

In cases where repayment cannot be avoided, we negotiate reasonable terms that respect your current financial condition.

4. Appealing Through the Board of Veterans’ Appeals (BVA)

If the DMC or local VA office denies the waiver or affirms the debt, we escalate the matter to the BVA, presenting a legal brief and documentation to challenge both the existence and enforceability of the debt.

Our Strategic Approach at Congruence Law, P.C.

We understand the financial, emotional, and legal pressure VA debt imposes—especially when you’ve done nothing wrong. Our team works quickly and systematically to:

• Analyze the origin of the debt and assess for procedural defects

• Gather financial documentation to support waiver or hardship arguments

• Challenge collection efforts that were initiated without notice or opportunity to respond

• Ensure your due process rights are fully protected throughout the appeals process

Common Pitfalls to Avoid in VA Debt Cases

1. Ignoring the Debt NoticeDelay can lead to automatic withholding of VA benefits or referral to federal collections. Responding quickly preserves your rights.

2. Failing to Dispute or Request a Waiver PromptlyVeterans typically have 30 days to request a hearing or challenge collection and 180 days to file a waiver request. We help you meet these deadlines.

3. Submitting Incomplete Financial InformationA strong hardship argument requires full, accurate documentation. We help you build a compelling and compliant financial profile.

4. Assuming You Must Repay Without QuestionMany debts are created through no fault of the veteran. With the right approach, these debts can be reduced, eliminated, or avoided entirely.

Why Work With Congruence Law, P.C.

Our mission is to protect the rights and financial security of the veterans we serve. We understand that you should not be punished for bureaucratic delays or unclear VA guidance. Whether the debt involves compensation, education benefits, or pension payments, we work to ensure fairness, accuracy, and relief.

If you’ve received a debt letter from the VA, don’t navigate it alone. Contact us at veterans@congruence.com for a consultation. We’ll help you evaluate the claim, preserve your rights, and fight back with purpose.