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They cannot. Disability cannot be garnished. Check out 5 CFR 581.103 for what sources of income are subject to garnishment.
You will be surprised to say the least.....
A typical VA Disability Compensation payment is not income and is not subject to garnishment. If a former service member was initially awarded military disability retirement (which is income), and the member opted instead for VA Disability Compensation, the amount of the award that could have been taken as disability retirement can be garnished. Most veterans in receipt of Disability Compensation were not previously eligible for military disability retirement as the system discourages it by making it a difficult experience.
5 CFR 581.103 refers to garnishment for enforcement of child support orders. The Treasury Department does enforce child support through their Treasury Offset Program, so this may be applicable. However, for a tax debt 26 USC 6334 specifically provides that VA Disability Payments are exempt from levy.
Technically and legally, no. But, they do try and sometimes are successful until the garnishee files suit to have the judgment garnishment quashed. FYI, Never commingle funds in a bank account when there are monies that are exempt from IRS or state tax agencies or judgment creditors. Always keep exempt funds in a separate account designated as such.
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