; and (B) by adding at the end the following new paragraph: (2) The Secretary may only deduct under paragraph (1) an amount of the indebtedness of a veteran, the estate of a veteran, or a spouse or child of a veteran who is deceased if the indebtedness is a result of one or more of the following: (A) An error made by the veteran, estate, spouse, or child, as the case may be. (B) Fraud perpetrated by the veteran, estate, spouse, or child, as the case may be. (C) A misrepresentation made by the veteran, estate, spouse, or child, as the case may be. (3) (A) The Secretary may not deduct under paragraph (1) from any payment made under chapter 11 or 15 of this title more than the lessor of— (i) 25 percent; or (ii) such other percent as the Secretary determines, pursuant to a request made under subparagraph (B), is the greatest percent that would not cause a hardship to the recipient of the payment. (B) A person whose future payments are to be reduced under paragraph (1) may request, via the administrative process prescribed under subsection (c), the Secretary make a determination under subparagraph (A)(ii) of this paragraph. (4) The Secretary may not deduct under paragraph (1) any amount relating to an indebtedness that was incurred by a veteran more than five years previously. (5) The Secretary may not deduct under paragraph (1) any amount relating to an indebtedness while the existence or amount of such indebtedness is being disputed under subsection (c). (6) The Secretary may not deduct under paragraph (1) any amount if the Secretary determines that the cost that would be incurred by the Department to recover such amount would exceed the amount to be recovered. . (2) Due process (A) Minimum period for notice and secondary review Subsection (b) of such section is amended— (i) by amending paragraph (1) to read as follows: (1) has made reasonable efforts to notify such person of such person's right— (A) to dispute through prescribed administrative processes the existence or amount of such indebtedness