Here is another great question that came in recently:  Can creditors go after a VA disability check? Generally, certain types of income are protected or “exempt” from bill collectors, such as social security and disability payments. Each state’s exemptions are a bit different, In Illinois, VA disability is also protected, but you need to be careful!

Here is my answer:

Generally, no, the creditors cannot sieze your VA Disability money. However, you need to be sure that no other money goes into that account. If it is mixed or “commingled” with the VA funds they could try. It is important to discuss your whole financial situation with a bankruptcy lawyer to discuss your options to stop the collections, and to see whether it may be necessary to file bankruptcy.

If you need to file for bankruptcy, those protections still apply.

Daniel J. Winter
BankruptcyLawChicago.com
djw@DWinterLaw.com
312-789-9999