question Asking for a friend: Bankruptcy and T&P?

This is a veteran-related question from a JVHV member

greg

Member
Bankruptcy usually doesn't touch your VA T&P disability benefits. They're kinda like this safety net that debt collectors can't collect from. So, if you're in a tight spot and have to declare bankruptcy, you should still see your T&P benefits coming in, no change there.

But, here's a heads-up: it's a smart move to have a cheap consultation with a legal professional, you know, like a bankruptcy lawyer. They can give you the real answer on how this all fits your particular situation.
 

dVet

Member
Board Chair
Bankruptcy usually doesn't touch your VA T&P disability benefits.
The keyword here is usually.

One instance that garnishment can occur is if you owe any federal debt. The VA can hold back (or "garnish") payments from your compensation and pension checks if you owe federal debt. This means if you have an unpaid debt to the federal government, a chunk of your VA payments could be taken to settle that debt.
 
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