Most likely, you should be able to get at least some of your funds back. No funds may be seized or garnished unless the creditor first obtains a judgment against you. If you never had notice of the lawsuit which resulted in judgments against you, you may have recourse under the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. §§501-597b.
Even if the SCRA does not apply to your situation, you may have a claim for wrongful garnishment. A creditor may not usually garnish the entirety of your bank account, because a percentage of your earned wages are usually exempted in order to cover your living expenses. (See Citation.) Additionally, there may be an applicable exemption based on the fact the money came from military disability benefits. Prior to any funds being seized, you should’ve been served with this form [PDF], and as you will see on page two, there is an exemption for Veterans.
Answered on Aug 19th, 2013 at 10:20 AM