QUESTION
Can the bankruptcy trustee or creditors seize his back pay so he will not receive it at all?
Asked on Aug 28th, 2017 on Bankruptcy - Oregon
More details to this question:
My husband and I have filed Chapter 7 on 8/14. Our meeting of the creditors was on 10/2. We got a call from VBA stating my husband’s new VA rating would be in within 20-30 days. If he is approved for his claim, he will be receiving a lump sum around $50,000.
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Veterans' benefits are exempt in bankruptcy. This means that your husband's veterans' benefits can't be seized by the trustee or his creditors. Neither the current payments nor any back pay. In Ohio, even bank accounts containing funds from the veterans' benefits are exempt although it can be challenging to prove how much of the money is veterans' benefits and how much comes from non-exempt sources.
Answered on Nov 02nd, 2017 at 2:01 AM
1 Award
Call an attorney ASAP.
Answered on Nov 02nd, 2017 at 1:59 AM