BVA9505268 DOCKET NO. 93-12 275 ) DATE ) ) On appeal from the decision of the Department of Veterans Affairs Regional Office in Chicago, Illinois THE ISSUE Waiver of recovery of loan guaranty indebtedness. REPRESENTATION Appellant represented by: AMVETS ATTORNEY FOR THE BOARD Barry F. Bohan, Counsel INTRODUCTION The appellant served on active duty in the United States Navy from October 1968 to May 1970. This appeal arose from a September 1992 decision of the Committee on Waivers and Compromises of the Department of Veterans Affairs Regional Office in Chicago, Illinois (VARO) which denied the appellant's request for waiver of recovery of loan guaranty indebtedness in the amount of $6,998.25. REMAND The appellant is seeking waiver of recovery of charged loan guaranty indebtedness in the amount of $6,998.25. A waiver of recovery of loan guaranty indebtedness may be authorized in a case in which collection of the debt would be against equity and good conscience. 38 U.S.C.A. § 5302(b) (West 1991); 38 C.F.R. § 1.964 (1993). "Equity and good conscience" involves a variety of elements. Particular emphasis, however, is placed upon the elements of the fault of the debtor and undue hardship. 38 C.F.R. § 1.965 (a)(1),(3) (1993). In essence, however, "equity and good conscience" means fairness to both the appellant and to the government. A review of the evidence contained in the appellant's loan guaranty file indicates that he purchased a house in Kankakee, Illinois for $12,500 in February 1978, using a mortgage loan which was guaranteed, in part, by VA. 38 U.S.C.A. §§3701 et seq. (West 1991). He defaulted on his monthly mortgage payments starting in April 1990. A Judgment of Foreclosure and Sale was entered against the appellant in the Circuit Court of the 21st Judicial Circuit, Kankakee County, Illinois, in February 1991, and the property was sold for $7,185.00 at a Sheriff's Sale in July 1991. In August 1991, the lender filed a claim under the loan guaranty, which was satisfied, in part, by VA. The appellant was charged with responsibility for loan guaranty indebtedness in the amount of $6,998.25. In January 1992, the appellant wrote to VARO, requesting a waiver of the charged loan guaranty indebtedness. In essence, he claimed that he was without fault in the creation of the indebtedness because he had been laid off from his job. He also contended, in substance, that repayment of the charged indebtedness would cause him financial hardship. The September 1992 decision which forms the basis for this appeal denied the appellant's request in large measure because he had not furnished a Financial Status Report (VA Form 4-5655) and the extent of his financial hardship, if any, could therefore not be determined. In a June 1993 informal presentation, the appellant's accredited representative requested that this case be remanded to VARO because the appellant's local representative had not been given an opportunity to review the case and provide assistance to the appellant. The Board believes that further development, to include submission by the appellant of a Financial Status Report, would be helpful in this case. The Board wishes to emphasize that the appellant bears some responsibility in the development of his claim. Wood v. Derwinski, 1 Vet.App. 190, 193 (1991). The case is therefore REMANDED to VARO for the following actions: The appellant should be contacted, through his representative, and should be furnished with a Financial Status Report (VA Form 4- 5655), which he should be instructed to complete and return within sixty (60) days. The completed Financial Status Report should be associated with the appellant's claims folder. After the above development has been completed, VARO should readjudicate the appellant's claim. If the claim remains denied, the case should be returned to the Board after compliance with all requisite appellate procedure. The purpose of this REMAND is to procure clarifying data. The Board intimates no opinion as to the ultimate conclusion warranted, pending completion of the requested development. No action is necessary on the appellant's part until he receives further notice. 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) (1994).