Answer:
Your best course of action is to consult counsel. Just like Social Security benefits, these may be "attachable", depending on the source of the levy.
For veterans benefits, look to 38 USC Section 3501, which states in part:
(a) Payment of benefits due or to become due under any law administered by the Secretary [of Veterans Affairs] shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. The preceding sentence shall not apply to claims of the United States arising under such law nor shall the exemption therein contained as to taxation extend to any property purchased in part or wholly out of such payments.
On a related note, the IRS can levy some types of social security income. See this link http://www.irs.gov/businesses/small/article/0,,id=100539,00.html for info on that.
First published on BankersOnline.com 3/10/03
print
share