severance pay

[hyenaboy34]

I was told two years ago from a friend dealing with this situation that if you recieved a medical seperation and got severanced you would have to re-pay that money to the VA. This I know is still in effect but my question is would you have to show proof you spent all that money? My friend had said you had to show bank statements proving all the money had been spent and or out of your account to start the pay back process. Just curious if this is true or not. Getting ready to go to Formal board to fight for more than 10% with three knee sugeries and a code of 5003. Thank you in advance.

 

[Jason Perry]

This is not true. You don't show them anything about how you spent or used the money. They just take the amount you were paid and reduce it by the VA compensation you would otherwise receive each month until a zero balance is reached. Then you start receiving the VA compensation.

Best of luck at the Board!