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johngibson15219, Attorney
Category: Bankruptcy Law
Satisfied Customers: 159
Experience:  Admitted to Pennsylvania Bar 1980. I'm familiar with the new law.
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38 USC 5301 states that the VA disability can not be assigned

Resolved Question:

38 USC 5301 states that the VA disability can not be assigned to creditors and has some very specific language in it. When filing bankruptcy, for the purposes of VA disability which statute would be applied, 11 U.S.C. 1325(c) or 38 USC 5301?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  johngibson15219 replied 7 years ago.
VA disability payments fall within your bankruptcy exemptions. You may use them to fund a Chapter 13 Plan but I don't think the Trustee is able to attach them despite 1325(c)'s express language.
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