Can a collection agency put a hold on money received from the VA?

UPDATED: Apr 9, 2012

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Can a collection agency put a hold on money received from the VA?

My husband was a 100% disabled veteran when he passed away 5 years ago. I found out that he had gotten a credit card in both our names. I did not know he had done this until I started to get collection calls. Went to court once and they ruled for the colection agency and at that time I told them I had no way to pay. I still don’t yet they are now going after money I have recently received from the VA. They have put a hold on this money which I just found out about. It is my understanding that they are not allowed to touch these funds. Now I have to go back to court.

Asked on April 9, 2012 under Bankruptcy Law, Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If there is a judgment against your husband where the credit card company has placed a levy on some benefits he is receiving from the Veteran's Adminsitration, the levy may be improper in that the proceeds could be exempt from levy if such are for a pension and the like.

Howver, if the checks have been cashed and placed in your husband's own personal  bank account, then any exemption from a levy has been lost. I suggest that you consult with an attorney that practices in the area of consumer law to assist you further in your matter concerning the exemption issue.


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