BVA9502544 
DOCKET NO.  93-05 030     )       DATE
          )
          )

On appeal from the decision of the
Department of Veterans Affairs Regional Office in St. Petersburg,
Florida

THE ISSUE

Waiver of recovery of loan guaranty indebtedness.

ATTORNEY FOR THE BOARD

Christopher P. Kissel, Associate Counsel

REMAND

The appellant had active duty from July 1967 to February 1976.

This matter came before the Board of Veterans' Appeals (the Board)
on appeal from a decision of the Committee on Waivers and
Compromises (the Committee) of the Department of Veterans Affairs
Regional Office in Denver, Colorado, issued in January 1992.  The
appellant  filed a substantive appeal to the Board in March 1992.

In its January 1992 decision, the Committee determined that there
was no fraud, misrepresentation or bad faith involved in the
creation of the indebtedness; however, they concluded that
collection of the loan guaranty indebtedness, in the amount of
$25,355.80 plus interest, would not be against the principle of
equity and good conscience.  The Committee concluded that
collection of the outstanding indebtedness would not "...
seriously impair [the appellant's] ability to discharge [his]
responsibilities to provide basic necessities of life."  Their
conclusion was not reached based on the appellant's actual
financial status; instead, the Committee noted that he had failed
to respond to their request that he submit a Financial Status
Report (VA Form 4-5655).  However, the Board finds no evidence of
record which reflects that such a request was either provided or
communicated to the appellant.  Given the nature of this case,
where the appellant's current financial status is paramount to a
final disposition of his claim, the Board believes that he should
be provided with another opportunity to submit the aforementioned
requested financial information.

Accordingly, to ensure that the Department of Veterans Affairs
(VA) has met its duty to assist the claimant in developing the
facts pertinent to the claim and to ensure full compliance with
due process requirements, the case is REMANDED to the regional
office (RO) for the following development:

1.  The appellant should be provided the
opportunity to submit an up-to-date
Financial Status Report (VA Form 4-5655),
with any additional supporting
documentation regarding income and
expenses.

2.  With respect to the above development,
reasonable and thorough efforts to document
the actions taken should be made.  Also,
any lack of response or failure to
cooperate should be clearly documented in
the record.

3.  After the development requested above
has been completed to the extent possible,
the Committee should again review the
record.  If the benefit sought on appeal
remains denied, the appellant and
representative, if any, should be furnished
a supplemental statement of the case and
given the opportunity to respond thereto.

Thereafter, the case should be returned to the Board, if in
order.  The Board intimates no opinion as to the ultimate outcome
of this case.  The appellant need take no action unless otherwise
notified.

          KENNETH R. ANDREWS, JR.
          Member, Board of Veterans' Appeals

The Board of Veterans' Appeals Administrative Procedures
Improvement Act, Pub. L. No. 103-271, § 6, 108 Stat. 740, ___
(1994), permits a proceeding instituted before the Board to be
assigned to an individual member of the Board for a
determination.  This proceeding has been assigned to an
individual member of the Board.

Under 38 U.S.C.A. § 7252 (West 1991), only a decision of the
Board of Veterans' Appeals is appealable to the United States
Court of Veterans Appeals.  This remand is in the nature of a
preliminary order and does not constitute a decision of the Board
on the merits of your appeal.  38 C.F.R. § 20.1100(b) (1993).