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Repayment of a Loan Prior to Death

Situations where loan repayment occurs prior to death



A person can choose to repay all or part of the debt and accrued interest at any time.  The Commission has the discretion to accept repayments by instalments or lump sums.

Additionally 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 the value of the loan.  Any nominated amount may still be recovered from the sale of the property if the outstanding loan is more than the sale price less the nominated amount.

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.