It is especially important that any statement also be included regarding the reservation of the Government's right to collect from other obligors. It is important where there is a coobligor that care be taken to insure that the compromise is handled so as not to legally release other debtors. The Chief of the Fiscal activity will advise a debtor when a compromise offer is considered frivolous and is rejected. The Chief of the Fiscal activity will not refer a compromise offer to the Committee on Waivers and Compromises when it is determined that the offer is frivolous or there is reason to believe that the offer is not made in earnest. In such cases, the debtor should be informed that the offer is returned as not being realistic when compared with the amount of the debt and ability to pay.
Entitlement is charged equivalent to the amount written off when an education debt is compromised.
Basic loan entitlement is reduced by entitlement used to obtain a direct, guaranteed or insured housing loan. If the loan is defaulted and VA incurs a loss on such a loan, a debt is established against the veteran. When the debt is compromised, the amount compromised must be paid in full to restore previously used entitlement. Any funds submitted as compromise offers will be returned or refunded to the remitter if the compromise offer is rejected.