Advisory - Oregon Protects Electronic Deposits Of Va Benefits From Garnishment

[slangpdx]

Just found out there is a state law, new possibly, that protects up to $2500 of certain electronic deposits including VA benefits from garnishment. At a Chase branch I filled out an affidavit and it covers all accounts. Bank officer said they could also use it to trace and protect checks deposited also, which was what I had.

[jbasser]

That is nice but remember it is all protected under federal law. That takes precedence over state law.

J

[slangpdx]

If there is a federal law can you tell me what it is?

thanks

[carlie]

If there is a federal law can you tell me what it is?

thanks

Here's the law and a link for you.

Just FYI - if your issue involves alimony or child support - it will depend on the judge.

If your issue involves you owing the gooberment money, they can collect it thru a proposal

to reduce.

Title 38 USC 5301

5301. Nonassignability and exempt status of benefits

http://www.gpo.gov/fdsys/pkg/USCODE-2010-title38/pdf/USCODE-2010-title38-partIV-chap53-sec5301.pdf

Here's another link that might be of interest.

http://www.va.gov/DEBTMAN/components/landing2_relatedlinks.asp

Debt Management

[Chuck75]

In may states, the divorce courts rulings side step federal law, and include VA compensation as income for purposes of establishing child support, and other divorce related items. It will take state law changes to stop the practice, and the changes aren't likely to occur. Other liens, etc. do fall under federal and state law. The most egregious violations seem to have been via VA Fiduciaries, appointed by the VA to handle a veteran's money when the VA rules (or even proposes) that a veteran is "incompetent". Banks are also at fault for turning over funds in excess of what the laws allow/require. It can be time consuming and difficult to get the funds returned when this occurs. It may become more of a problem when "direct deposit" is required, since the VA then has an easy way to obtain account details, etc.

Edited May 7, 2012 by Chuck75