Does anyone know if there is a Federal Statue that states VA benefits cannot be garnished?

Question

My boyfriend recently had a creditor freeze his bank account when his VA benefits were deposited 1st of the this month, so know he has no access to any money nor will the checks he wrote to pay bills with go through. Can anyone help?

Answer 1

Federal statutes generally prohibit the garnishment of VA benefits to satisfy debts owed to private individuals. The sole exception is that VA disability compensation received in lieu of waived military retired pay can be garnished in order to satisfy court-ordered child support and alimony obligations. In such cases, only a portion of a VA compensation award representing the amount of retired pay which has been waived can be garnished. Although I cannot tell you today in how many cases we are implementing a garnishment order, a VA survey in 1992 indicated only 93 garnishment orders were received during the preceding year.


Sounds like the problem isn't that they garnished the VA benifit; they attached the bank accouont; a different problem.

Check with the bank

Answer 2

September 24, 2007
FDIC Tells Congress: Garnishment of Consumer Bank Accounts Containing Social Security Funds Is A Problem
FDIC General Counsel Sara Kelsey addressed the Senate Finance Committee on "The Impact of Garnishment on Social Security Benefits." FDIC recognizes that Federal benefit payments are an important -- and often the sole -- source of income for many Americans. Actions that limit access to these funds can result in hardship and expense for the benefit recipients. Banks usually freeze deposit accounts when they receive a garnishment order, even if the account contains Federal benefit payments.

Under federal law, the following types of federal benefit payments are protected from garnishment or attachment by creditors: Social Security benefits, Supplemental Social Security benefits, Veterans Administration (VA) benefits, civil service retirement benefits, military retirement annuities, and railroad retirement benefits. Many state laws conflict with this protection. Banks, out of caution, freeze the funds and wait for a hearing to sort out the legal status of the funds.

Most benefit payment recipients are unaware of this legal protection from garnishment. FDIC is engaged in an awareness campaign on this issue.

http://lawprofessors.typepad.com/banking/2007/09/fdic-tells-cong.html

Answer 3

Under federal law, several types of federal benefit payments are protected from garnishment or attachment by creditors. These include Social Security benefits, Supplemental Social Security benefits, Veterans Administration (VA) benefits, civil service retirement benefits, military retirement annuities, and railroad retirement benefits. While each type of benefit is protected under its own respective statute, these laws typically provide that the benefits are not subject to execution, levy, attachment, garnishment, or other legal process.

Specifically, it's 38 USC 5301 which says that attaching VA benefits is prohibited.

Talk to the bank. They are (or should be) aware of this law. (Suggestion: take your cell phone with you when you go, and snap pictures of everyone you talk to, and it will make them more amenable to doing the right thing.)

Answer 4

VA compensation can only be garnisheed to pay child support when a former member of the Armed Forces, who has waived all or a portion of military retired or retainer pay in order to receive the compensation, and then only the amount of VA compensation that represents the military retired pay or retainer pay that has been waived is subject to garnishment for child support.

By statutory authority, military retired pay and retainer pay is subject to garnishment for child support. (42 U.S.C. § 659(h)(1)(A)(II). )

Section 5304, of title 38, United States Code, prohibits a retiree from receiving retired pay and compensation at the same time. Because military retirees are required to waive
their military retired pay in order to receive VA compensation, this cannot be sheltered from the garnishment that would otherwise occur.

Therefore, VA compensation can be garnisheed pursuant to a court order to pay child support or alimony, but only when a veteran receives the compensation in lieu of military retired pay with a partial or total waiver. (42 U.S.C. § 659(h)(1)(A)(V) and 5) C.F.R. 581.103(c)(7).

Disability compensation is the only VA benefit subject to
garnishment for child support. (42 U.S.C. § 659(h)(1)(B)(iii) and 5 C.F.R §581.104(b).)

When a garnishment order is received by a VA regional office, it is referred to the district counsel. The district counsel is responsible for reviewing the order and preparing a memorandum explaining the legal basis for any further action and the amount of the garnishment that is to be established.

The memorandum is forwarded to adjudication, where an award withholding the garnishment amount is processed. Garnishment of VA compensation is not subject to the advance notice required for other types of benefit reductions and can be implemented upon receipt.

The veteran may appeal to the Board of Veterans’ Appeals only those issues involving VA’s implementation mechanics. The provisions or inherent legality of the garnishment order are under the jurisdiction of the issuing court.

The Defense Authorization Acts of 2003 and 2004 created combat-related special compensation (CRSC) and concurrent retirement disability payments (CRDP), and the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 eliminated the phase-in period for CRDP for retirees who are receiving 100 percent VA compensation.

Answer 5

contact the VA and have them send the checks directly to your bf. once they are deposited they aren't VA benefits anymore so if the creditor got the bank to freeze the account then its legal and has nothing to do with VA benefits.

bottom line if you don't pay your debts people will come after you.

Answer 6

The fault of the auto industry isn't in its worker's benefits. The fault lies at the top, with all the goodies that the executives have allowed for themselves...the jets, the champagne lunches, the unlimited expense accounts...and spending like drunken sailors...much like our federal government is now doing. It's poor planning on the auto industries top officials. And it's their reliance on credit, instead of old fashioned horse sense (spend only when you've got it). And the states relied too much on the federal governments handouts. Now that the feds have cut back, the states have to cut out things that they got used to having...which they didn't need in the first place. I think if someone has a retirement benefit, they should retain it, no matter where they worked. And if the state & federal workers have to give up their retirements, then it should start at the top, with our president. After all, if you want people to accept what you're pushing, then you need to be the first role model, showing everyone that you're willing to live with it too. I agree with the military being protected. Hepcat...thank you for your service. It's easy to say "take their bennies away", until you realize the faces (and the families) behind the average American worker. <*)))><

Answer 7

your boyfriends bank should be well aware of the federal law, he should go down to the bank branch with proof that the funds in the account are VA benefits and demand immediately to release the account or face federal fines and then go to the state banking authority

Answer 8

If he froze the account into which the benefits were deposited, that is NOT the same as garnishment. It appears from the link below that VA benefits can be garnished only for child and/or spousal support.

http://www.military.com/benefits/military-pay/military-garnishment

Answer 9

I use to work in an area of the bank that was responsible for putting freeze on accounts. And I know that they can even garnish someones unemployment check too! I believe it is up 25%? Yes..thats a tough situation you have here, and legally he can be garnished even VA!

Hope things work out okay!

Answer 10

i did not know that anyone could do that ezcept for the IRS