Trump Signs Bill Protecting Disability Payments for Veterans Who Declare Bankruptcy

[longknife]

The Honoring American Veterans in Extreme Need, or HAVEN, Act extends the same protection for veterans disability payments that's afforded Social Security disability payments: By law, debtors are now not allowed to count these benefits as disposable income subject to seizure during a bankruptcy.

Something I didn’t know. I thought retirement and disability payments are untouchable. Anyone have more information about that?


More of this @ Trump Signs Bill Protecting Disability Payments for Veterans Who Declare Bankruptcy

 

[RodISHI]

Federal law protects your Social Security disability checks from debt collectors, but not from the federal government itself. However, by law, you must be left with $750 per month in benefits after any government seizure.

 

[whitehall]

I thought it was a given that banks couldn't attach Veteran disability benefits. I'm glad the President made it official though. I wonder why no other administration (or Congress) delt with it in the past.

 

[Daryl Hunt]

I thought it was a given that banks couldn't attach Veteran disability benefits. I'm glad the President made it official though. I wonder why no other administration (or Congress) delt with it in the past.

It is. And has been for almost as long as the Bankruptcy laws have existed.

See 38 U.S.C. § 5301

This is another case of Rump grabbing headlines doing nothing and claiming some elses thunder. Creditors could NEVER attach the disability money from anyone. What it means is that it can be used to determine your total income when applying for Chapter 7 versus Chapter 13. If your total income percentage exceeds a certain amount then you have the ability to pay your creditors back in 3 to 5 years and you aren't eligible for a Chapter 7 and must apply for a Chapter 13 which is a reorganization of those debts. The same applies to the standard Disability pay for civilians as well.

The EO does exactly nothing except con you Rump Fanatics into a Frenzy.