Are VA benefits exempt?

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Is military disability compensation payments subject to earned wages for the means test; and also can that money be taken?

Asked 10/18/2009 under Bankruptcy | 803 View(s) | More Legal Topics

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The means test excludes money from Social Security or veteran's benefits.  Additionally, federal law generally exempts veteran's benefits from seizure, both before and after receipt by the beneficiary. However, if the benefits are spent on a permanent investment, they are no longer exempt as "veteran's benefits." And, once benefits are paid to the veteran, they may be reached by court order to satisfy the veteran's child support obligations.

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