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Recovery of Debt Prior to Death of Debtor

Situations where debt recovery occurs prior to death



The Commission has the discretion to seek debt recovery before a person's death where:

  • the pensioner sells or disposes of the property used as security, or
  • a property settlement occurs.
Example of debt recovery prior to death

A farm property is devalued placing full recovery in jeopardy. Sale of part of the property may be sought to ensure the prospects of future full recovery are assured.    

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Debt recovery limits

If DVA is given prior notice of the sale or disposal of a property, the maximum amount of debt payable by a person is limited by the guaranteed amount. If the value of the estate less the guaranteed amount is less than the value of the loan, only the difference between the value of the estate and the guaranteed amount can be recovered.

Recovery of debt after pension loans scheme ceases to operate


Ongoing payments under the scheme cease from the pension payday after

  • a request to withdraw from the scheme is made; or
  • the scheme ceases to operate because debt exceeds the maximum loan available

If a pensioner withdraws from the pension loans scheme, they can either:

  • repay the debt in full;
  • repay part of the debt and accrued interest at any time; or
  • defer recovery from their estate until after their death.
Separation of Pension Loans Scheme couple

If a couple separate permanently, the debt may be recovered when the property settlement occurs or at an appropriate time dependent on the circumstances of the case.

Section 52ZK VEA - Effective date of withdrawal from scheme

Section 52ZKA VEA - Repayment or recovery of debt after scheme ceases to operate

VEA ? (go back)

According to Section 179 of the VEA, the Commission is a body corporate under the name of Repatriation Commission.



The Department of Veterans' Affairs.

A guaranteed amount is the minimum amount (if any) that a pension loan scheme participant or their estate is entitled to retain from the proceeds of the enforcement of a charge on their assets by the Commonwealth. Any guaranteed amount is to be specified by the participant in the scheme.