Are You Receiving “Protected” VA Benefits?
Attention veterans who are receiving VA disability pensions!
If, like me, you are receiving a VA disability payment each month, that payment is protected from any garnishment from creditors. It may even be immune to IRS garnishment. However, a recent case notes a trap for you.
One veteran deposited his checks into his bank account, which was his only income. At some point, creditors attempted to garnish his bank account. The veteran argued that these funds were protected.
The court allowed the garnishment. Funds deposited in a bank or investment account can be garnished by creditors regardless of the type of income that produced the savings.
If you are receiving a VA disability pension and owe creditors or the IRS money, you may be better off simply cashing your checks and using the money to buy things or to purchase bank checks for payments to vendors. Keep this in mind.
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