True or False: If benefit payments are withheld to collect a debt and a timely request for waiver is submitted, the withholding will be suspended.

The correct understanding is that if benefit payments are withheld to collect a debt and a timely request for waiver is submitted, the withholding will indeed be suspended. When an individual submits a request for a waiver of a debt, it indicates that they believe there are valid reasons why the debt should not be collected or that collection wouldn't be appropriate. During the processing of that waiver request, it is typical practice for the withholding of benefits to be put on hold to prevent undue hardship while the request is evaluated.

The rationale is that individuals should not face the consequences of debt collection while they are actively seeking a waiver that may affect the legitimacy or validity of that debt. This aligns with the principles of fairness and due process, ensuring that veterans and others are allowed a fair chance to contest debts that may not be justly owed.

In this case, the response indicating "false" misunderstands the protections afforded to individuals when a waiver is requested. There is a clear procedural protocol in place that ensures withholding is suspended pending the adjudication of that waiver request.