Protection afforded Veterans and their VA benefits.

Know your Rights!

VA benefits are protected from creditors, taxation, and other legal processes.

With the extremely long delay in obtaining VA benefits from the VA, many veterans face tremendous and crippling medical bills.

This blog will help you know your rights, and protect your VA benefit payments. Please see Threats and constant calls from creditors and even advice from non-VA accredited attorneys may compel veterans to make unwise decisions regarding their VA benefits.

One of my veterans desperately e-mailed me stating his bankruptcy attorney was going to include his VA disability payments as an asset that a hospital could collect and garnish. This advice is incorrect. The veteran just wanted to have the creditor stop calling.

Unfortunately, it appears the bankruptcy attorney does not know that VA benefits (disability payments included) are protected. Congress protects VA benefits in order to provide care of the disabled veteran and the veteran’s family. A disabled veteran receives VA benefits because he was disabled serving our country.

The law office of Robert B Goss, understands VA benefits are protected, and this is why you need a good VA accredited attorney to assist you with your VA disability benefits.

Congress’ protection includes veteran’s VA benefits, any proceeds received from Service Members Group Life Insurance, or from Veterans Group Life Insurance policies payments. Congress’s provided this protection in 38 U.S.C. § 5301(a), 42 U.S.C. § 659(h)(1)(B)(iii) and 38 U.S.C. §1970(g).

This protection of VA benefits as codified in 38 U.S.C. § 5301(a) includes protection once the monies are deposited into a bank “either before or after receipt by the beneficiary.”

VA Overpayments
There are exceptions, including VA overpayments to a veteran. In the case of an overpayment the VA is allowed to recoup this money. Child support is another area allowing garnishment. The Supreme Court of the United States ruled that states have a right to collect child support through court orders in Rose v. Rose, 481 U.S. 619 (1987).

Any property purchased with VA disability payments may lose their tax-exempt protection.

VA Benefits deposited in banks:
This protection of VA benefits as codified in 38 U.S.C. § 5301(a) includes protection once the monies are deposited into a bank “either before or after receipt by the beneficiary.”

Congress provided further protection once VA benefits/disability payments are deposited in banks. In addition to VA benefits having protection, Social’s Security benefits, and other federal benefit payments deposited in banks are also protected.

To avoid creditors from garnishing bank accounts, Congress requires any credit agency trying to freeze a veterans VA disability benefits to follow the procedures in 31 CFR part 212 (2011). Essentially, this law states a debt collector must verify that no VA benefit have been deposited in the bank in the last 2 months. Thus the veteran has protection for 2 months worth of VA disability payments.

Texas specific protection:
Additionally, for Texas residents, the Texas Constitution makes it illegal for a creditor to garnish your wages. The Law Office of Robert B. Goss has successfully fought and reversed out of state (Ohio) wage garnishment orders
Homestead protections. The state of Texas offers the best protection for veterans by protecting their homestead and many assets.

For 100% disabled veterans, including TDIU, Property Tax exemptions exist – -you must apply.

Our goal at the Law Office of Robert B. Goss, is to assist veterans and their families. This information is intended to help you our veterans and their families avoid unscrupulous debt collectors or agree to an incorrect legal agreement in bankruptcy court.

If you are looking for assistance with your VA disability claim, please contact The Law Office of Robert B. Goss, P.C. at

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