I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation.
VA disability payments cannot be garnished to pay a judgment, and neither can Social Security or retirement payments when you start receiving those. Under Minnesota law, up to $390,000 in equity in your home is exempt from being taken to pay a judgment. Minn. Stat., Section 510.02. What that means is, unless you have significant other assets lying around, there is no way to collect a judgment from you. You are what's called "judgment proof."
The statute of limitations here is six years, so it's not too late for them to sue. They can spend thousands of dollars suing you, but they don't have any way of getting paid unless you inherit or win a large sum of money. And what that means is that you can offer them essentially any amount you want, letting them know that they will not get anything it they take you to court. You also have the ability to refuse to pay anything. They CAN still sue you, but they can't force you to pay the judgment unless you have a house with more than $390,000, a fancy car, or bank accounts with cash in them.
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