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Bankrupt vets can lose their disability benefits. This new effort would protect them.

from Military Times Rebootcamp

Two senators just introduced a bill designed to shield veterans' disability benefits from debt collectors. When a disabled vet declares bankruptcy currently, the law allows debtors to count a veteran's disability benefits as disposable income, allowing them to seize the benefits. Yet, Social Security disability benefits are exempted by law from being lumped into a person's disposable income in bankruptcy filings, and disability benefits in any form aren't taxable and therefore generally not considered disposable income. more


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