How to Fill Out VA Form 5655 for Debt Relief

VA Form 5655: How to Fill Out the Financial Status Report and Request Debt Relief

VA Form 5655, officially called the Financial Status Report (FSR), is the form you submit to the VA Debt Management Center (DMC) when you cannot repay a VA debt in full and need to request a waiver (debt forgiveness), a compromise offer (paying less as a settlement), or a repayment plan of five years or longer. The form documents your complete financial picture—income, expenses, assets, and debts—so VA can determine what you can realistically pay.

What Is VA Form 5655 Used For?

VA Form 5655 is used to request three specific types of debt relief from the VA Debt Management Center: a waiver, a compromise offer, or an extended repayment plan. The form gives VA a complete picture of your household finances so the Committee on Waivers and Compromises (COWC) can decide your request fairly.

VA debt can come from several sources. The most common are:

• Benefit overpayments — You received more disability compensation, pension, or education benefits than you were entitled to.

• Health care copay debt — You owe unpaid VA medical copayments.

• Home loan debt — You defaulted on a VA-backed mortgage.

When the VA sends you a debt letter, you have options. You can pay in full, dispute the debt, or request relief. If you cannot pay the full amount, VA Form 5655 is your primary tool for requesting a reduction, forgiveness, or a longer payment timeline.

What veterans should do next: If you received a VA debt letter and cannot pay in full, download VA Form 5655 immediately. The time limit to request a waiver is one year from the date of your first debt letter.

Who Must Submit VA Form 5655?

You must submit VA Form 5655 if you want to request a waiver, a compromise offer, or a repayment plan that lasts five years or longer. If you can repay your debt in less than five years, you can set up a repayment plan without this form by contacting the DMC online, by phone, or by mail.

You also need to submit a new VA Form 5655 whenever your financial situation changes—for example, if you lose your job or get a new one. VA wants current information to make accurate decisions about your debt relief request.

Who Qualifies for Debt Relief?

You qualify to request VA debt relief if you owe a debt to the VA and can demonstrate that repayment would cause financial hardship. The VA evaluates your entire household financial situation, including your spouse’s income and expenses if you are married.

You do not need a service-connected disability rating to request debt relief. Any VA debtor—Veteran, surviving spouse, dependent, or caregiver acting on behalf of a debtor—can submit VA Form 5655.

Important: The Committee on Waivers and Compromises has the authority to grant or deny waiver and compromise requests. If your request is denied, you have appeal rights under 38 CFR Parts 19 and 20.

How to Fill Out VA Form 5655: Section-by-Section Guide

The form is divided into several sections. Fill out every section completely. An incomplete form will delay processing.

Section I: Personal Identification

Enter your full name, Social Security Number (SSN), VA file number, date of birth, and current mailing address. Include your telephone number and email address so VA can contact you with questions.

Common mistake: Leaving the VA file number blank. If you have a VA file number, include it even if you also list your SSN. This helps VA match your form to your debt record quickly.

Section II: Income

Report all sources of monthly income for you and your spouse. Include:

• VA disability compensation and pension

• Social Security benefits

• Military retirement pay

• Wages from employment

• Self-employment income

• Rental income

• Unemployment benefits

• Workers’ compensation

• Any other regular income

What counts as income: Gross income before taxes and deductions. VA wants to know what you actually receive each month.

Section III: Expenses

List your average monthly living expenses. Include:

• Rent or mortgage payment

• Utilities (electricity, gas, water, trash)

• Food and groceries

• Transportation (car payment, insurance, gas)

• Medical expenses (out-of-pocket costs, prescriptions)

• Child care or dependent care

• Insurance premiums (health, life, auto)

• Phone and internet

• Clothing and personal care

• Other necessary expenses

Common mistake: Underreporting expenses. Be honest about what you actually spend. VA needs an accurate picture to make a fair decision.

Section IV: Discretionary Income

Subtract your total monthly expenses from your total monthly income. This is your discretionary income—the money you have left after covering basic needs. VA uses this figure to determine what you can reasonably pay toward your debt.

If your discretionary income is zero or negative, explain that in your personal statement. This is strong evidence that repayment would cause financial hardship.

Section V: Assets

List all assets you own:

• Bank accounts (checking, savings, CDs)

• Retirement accounts (401(k), IRA, Thrift Savings Plan)

• Vehicles (cars, trucks, motorcycles, boats)

• Real estate (primary home, rental property, land)

• Stocks, bonds, and investments

• Cash on hand

• Personal property of significant value

Include the current value of each asset, not what you paid for it.

Section VI: Debts and Liabilities

List all outstanding debts:

• Credit card balances

• Medical bills

• Personal loans

• Car loans

• Student loans

• Other VA debts

• Any other financial obligations

For each debt, include the creditor name, total balance owed, and monthly payment amount.

What Documents Do You Need?

Gather these documents before you start filling out VA Form 5655. Having them ready speeds up the process and reduces errors.

Required Documents

• Proof of income: Recent pay stubs, VA award letters, Social Security statements, or bank statements showing deposits.

• Proof of expenses: Bills for rent/mortgage, utilities, medical expenses, and other regular payments.

• Asset documentation: Bank statements, retirement account statements, vehicle titles, property tax assessments.

• Debt documentation: Statements for credit cards, loans, and other debts showing balances and minimum payments.

• Personal statement: A written explanation of why you are requesting debt relief.

Personal Statement Requirements

When you submit VA Form 5655, you sometimes need a personal statement explaining your situation.

• For a compromise offer: Explain why you are asking to pay less than the full amount. State the one-time amount you are offering as full payment.

• For a waiver: Explain why you feel you should not have to repay the debt. Share information not already in your VA records. You can also request an oral hearing.

If you submit your request online, the VA online form includes a section for your personal statement. If you submit by mail, write your statement in a separate document and include it with your form.

How to Submit VA Form 5655

You can submit VA Form 5655 online or by mail. The online method is faster and reduces the risk of lost paperwork.

Option 1: Online Submission (Fastest)

Go to VA.gov and access the Financial Status Report online form. The online form walks you through each section and includes space for your personal statement. You can submit supporting documents electronically.

Best for: Veterans with benefit debt (disability compensation, pension, education benefits) who want the quickest processing time.

Option 2: By Mail

Download and print VA Form 5655. Fill it out completely, sign it, and write your personal statement in a separate document. Mail everything to:

U.S. Department of Veterans Affairs
Debt Management Center
PO Box 11930
St. Paul, MN 55111

Option 3: In Person (For Health Care Copay Debt Only)

If your debt is for VA health care copays, you can submit your completed form and personal statement to the business office or health administration office at your nearest VA medical center.

Best for: Veterans with copay debt who prefer to submit paperwork in person or want to speak with a VA representative directly.

Decision Tree: Which Submission Method Should You Use?

VA Debt Relief Options: Waiver, Compromise, and Repayment Plans

VA Form 5655 supports three different types of debt relief. Understanding each option helps you decide which to request.

Waiver (Debt Forgiveness)

A waiver asks VA to forgive your debt entirely. If granted, the debt is cancelled, and you owe nothing. Waivers are typically granted when repayment would cause financial hardship or when there is a legal or equitable reason the debt should not be collected.

Deadline: You must request a waiver within one year from the date you received your first debt letter.

Best for: Veterans whose income and assets are insufficient to repay the debt without hardship.

Compromise Offer (Reduced Settlement)

A compromise offer asks VA to accept a lower, one-time payment as full settlement of the debt. If accepted, you pay the agreed amount, and the remaining balance is forgiven.

Best for: Veterans who have some ability to pay but cannot afford the full balance.

Repayment Plan (5+ Years)

If you need more than five years to repay your debt, you must submit VA Form 5655 to request an extended repayment plan. VA will review your income and expenses to determine a reasonable monthly payment.

Best for: Veterans with steady income who can afford to pay something but need more time.

Comparison Table: VA Debt Relief Options

VA Form 5655 Processing Time

VA Form 5655 processing typically takes 60 to 90 days from the date the Debt Management Center receives your completed form. Complex cases involving large debts, missing documentation, or requests for oral hearings may take longer.

What Affects Processing Time?

• Completeness of your form: Missing information causes delays.

• Supporting documentation: Incomplete financial records slow review.

• Personal statement quality: A clear, detailed statement helps VA decide faster.

• Current DMC workload: Processing times vary depending on volume.

• Oral hearing requests: If you request a hearing, add time for scheduling.

What you should do next: Submit your form as soon as possible. The one-year waiver deadline is strict. Missing it may eliminate your ability to request debt forgiveness.

Common Mistakes to Avoid When Filing VA Form 5655

Avoid these errors to prevent delays or denials.

1. Leaving Sections Blank

Every section must be completed. If a section does not apply to you (for example, if you have no rental income), write “0” or “N/A.” Leaving it blank may cause VA to consider your form incomplete.

2. Underreporting Income or Assets

VA cross-references your reported information with other federal records. Underreporting can result in denial or even fraud allegations. Report all income and assets, even if you think they are not relevant.

3. Forgetting the Personal Statement

A personal statement is required for waiver and compromise requests. Without it, your request may be denied. Explain your situation in detail—job loss, medical emergency, family hardship, or any other circumstance that affects your ability to pay.

4. Missing the One-Year Waiver Deadline

The deadline to request a waiver is one year from the date of your first debt letter. Do not wait. If you miss the deadline, you lose the ability to request forgiveness.

5. Not Submitting a New Form When Circumstances Change

If your financial situation changes after you submit your form—for example, you lose your job—you must submit a new VA Form 5655. VA makes decisions based on current information. An outdated form may lead to an incorrect decision.

6. Failing to Sign the Form

An unsigned form is invalid. Sign and date your VA Form 5655 before submitting it.

7. Not Keeping a Copy

Always keep a copy of your completed form and all supporting documents. If there is a dispute later, you will need proof of what you submitted.

What Happens After You Submit VA Form 5655?

After the DMC receives your form, here is what happens:

1. Initial review: DMC staff check that your form is complete and includes all required documentation.

2. Committee review: The Committee on Waivers and Compromises (COWC) reviews your financial information, personal statement, and supporting documents.

3. Decision: The COWC grants, denies, or partially grants your request.

4. Notification: You receive a written decision explaining the outcome and the reasons.

5. Implementation: If approved, VA adjusts your debt (forgiveness, reduced balance, or new payment plan).

If your request is denied, you have options. You can request reconsideration by the COWC or file a Notice of Disagreement (VA Form 10812) with the Board of Veterans’ Appeals (BVA).

Appeals Process for VA Debt Relief Decisions

If VA denies your request for a waiver or compromise, you have the right to appeal.

Option 1: Reconsideration by COWC

You can ask the Committee on Waivers and Compromises to reconsider your case. Provide new evidence or explain why the original decision was incorrect. This is the fastest appeal option.

Option 2: Notice of Disagreement (NOD)

File VA Form 10812, Notice of Disagreement, directly with the Board of Veterans’ Appeals (BVA). The BVA is an independent body that reviews VA decisions.

Deadline: You have one year from the date of the COWC decision to file a Notice of Disagreement.

Option 3: Appeal the Underlying Debt Decision

If you believe the debt itself is incorrect (not just the relief decision), you can appeal the underlying benefit decision. This is a separate process and may require filing a Supplemental Claim or requesting a Higher Level Review.

State Differences in VA Debt Relief

VA debt relief is a federal program, so the rules are the same across all 50 states. However, some differences exist.

Geographic Income Thresholds

VA uses geographic means test thresholds for certain health care copay exemptions. These thresholds are based on Department of Housing and Urban Development (HUD) low-income limits for your area. Veterans in high-cost states may qualify for copay exemptions at higher income levels than veterans in lower-cost areas.

Regional Hardship Patterns

Research shows that veterans in the South report higher rates of severe financial strain compared with veterans in other regions. This may affect how VA considers hardship claims, though the legal standards remain consistent nationwide.

State-Level Veterans Benefits

Some states offer additional financial assistance to veterans beyond VA benefits. These programs vary widely. Check with your state’s department of veterans affairs or a local Veterans Service Organization (VSO) to learn what is available.

Latest Rule Changes Affecting VA Form 5655 and Debt Relief (2026)

Stay informed about recent changes that may affect your request.

Updated Form Revision

VA Form 5655 was last revised in January 2024 . Always use the current version. Older versions may be rejected.

Online Submission Improvements

VA has streamlined the online submission process for medical debt relief. The online form now includes integrated personal statement sections and faster document upload.

Committee on Waivers and Compromises Policy Updates

The COWC financial policy documents were updated in October 2025 with new formatting and streamlined procedures. The changes are administrative and do not affect the legal standards for waivers or compromises.

Partial Claim Option for VA Home Loans

VA introduced a partial claim option for distressed mortgage borrowers. This allows VA to advance funds to cure delinquency by purchasing a portion of the loan indebtedness—up to 25 percent of the unpaid principal balance. This is separate from VA Form 5655 relief but may provide additional options for veterans facing foreclosure.

Common Questions

What is VA Form 5655?

VA Form 5655 is the Financial Status Report you submit to request a VA debt waiver, compromise offer, or repayment plan of five years or longer. It documents your income, expenses, assets, and debts so VA can evaluate your ability to pay.

Who needs to fill out VA Form 5655?

Any Veteran, dependent, or survivor who owes a debt to VA and cannot repay it in full within five years needs to submit this form. You also need it to request a waiver or compromise offer regardless of the debt amount.

How long does VA Form 5655 take to process?

Processing typically takes 60 to 90 days from the date the DMC receives your completed form. Complex cases may take longer, especially if you request an oral hearing or submit incomplete documentation.

What is the deadline to request a VA debt waiver?

You must request a waiver within one year from the date you received your first debt letter. Missing this deadline may eliminate your ability to request debt forgiveness.

Can I submit VA Form 5655 online?

Yes. The fastest way to submit is through the online form on VA.gov. You can also download the PDF and mail it to the DMC in St. Paul, Minnesota.

What is the difference between a waiver and a compromise offer?

A waiver asks VA to forgive the debt entirely. A compromise offer asks VA to accept a lower one-time payment as full settlement of the debt. Both require VA Form 5655.

Do I need to include my spouse’s income on VA Form 5655?

Yes. If you are married, VA needs to understand your spouse’s financial situation to assess your household finances accurately.

What happens if my VA Form 5655 is denied?

You can request reconsideration by the Committee on Waivers and Compromises or file a Notice of Disagreement (VA Form 10812) with the Board of Veterans’ Appeals. You have one year from the date of the decision to appeal.

Can I request an oral hearing?

Yes. You can request an oral hearing in your personal statement. Include this request in writing when you submit your form.

Where do I mail VA Form 5655?

Mail your completed form and personal statement to: U.S. Department of Veterans Affairs, Debt Management Center, PO Box 11930, St. Paul, MN 55111.

What if I can pay my debt in less than five years?

If you can repay in less than five years, you do not need VA Form 5655. You can request a repayment plan by contacting the DMC online, by phone, or by mail.

Does VA debt relief affect my credit score?

VA debt relief itself does not directly affect your credit score. However, unpaid debts that go to collection or result in wage garnishment may appear on your credit report. Requesting relief can prevent collection actions.

Key Takeaways

• VA Form 5655 is the Financial Status Report required to request a waiver, compromise offer, or repayment plan of 5+ years on VA debt.

• The form documents your income, expenses, assets, and debts so VA can assess your ability to pay.

• Submit the form online through VA.gov for the fastest processing, or mail it to the DMC in St. Paul, MN.

• The deadline to request a debt waiver is one year from the date of your first debt letter.

• A personal statement is required for waiver and compromise requests. Explain your financial hardship clearly and in detail.

• Processing typically takes 60 to 90 days. Incomplete forms cause delays.

• If denied, you can request reconsideration or appeal to the Board of Veterans’ Appeals within one year.

• VA Form 5655 was last revised in January 2024. Always use the current version.

• You do not need a service-connected disability rating to request VA debt relief.

• Keep a copy of your completed form and all supporting documents.

Official Resources

• VA Form 5655 Download Page: VA.gov/find-forms/about-form-5655

• Online Financial Status Report Submission: VA.gov/manage-va-debt/request-debt-help-form-5655

• Options to Request Help With VA Debt: VA.gov/resources/options-to-request-help-with-va-debt

• Request VA Financial Hardship Assistance: VA.gov/health-care/pay-copay-bill/financial-hardship

• VA Debt Management Center: VA.gov/debtman

• Committee on Waivers and Compromises Policy: Department.VA.gov/financial-policy-documents

• Code of Federal Regulations — Waivers: 38 CFR 17.105

• VA Office of General Counsel — Accredited Representatives: VA.gov/ogc/accreditation

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