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#430613 - 09/28/05 06:55 PM Exempt from garnishment?
Anonymous
Unregistered

Are VA disability checks exempt from garnishment just like social security checks? If you have a cite that would be great! Thanks!

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#430614 - 09/28/05 08:03 PM Re: Exempt from garnishment?
Just Jean Offline
Platinum Poster
Joined: Feb 2002
Posts: 582
USA
Probably depends on state law. In some states, we have to accept the garnishment, hold the funds, notify the customer and then they can request a hearing and explain to the Court that all their funds come from their federal disability or retirement payments. After that, we may be ordered to give the customer back the funds.

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#430615 - 09/29/05 12:59 PM Re: Exempt from garnishment?
Anonymous
Unregistered

Thanks anyway, but I found my answer. 38 USC 5301 states: "(a) Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. The preceding sentence shall not apply to claims of the United States arising under such laws nor shall the exemption therein contained as to taxation extend to any property purchased in part or wholly out of such payments. The provisions of this section shall not be construed to prohibit the assignment of insurance otherwise authorized under chapter 19 of this title, or of servicemen’s indemnity. For the purposes of this subsection, in any case where a payee of an educational assistance allowance has designated the address of an attorney-in-fact as the payee’s address for the purpose of receiving a benefit check and has also executed a power of attorney giving the attorney-in-fact authority to negotiate such benefit check, such action shall be deemed to be an assignment and is prohibited."

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