Legal Question in Credit and Debt Law in Virginia

An individual has a checking and savings account at the same institution and has Veterans retirement benefits from military service deposited into their checking account.

If they then transfers some of that money into their savings account, does that money lose its status as exempt from attachment or garnishment?

If the money in the checking account is co-mingled with money from non- exempt sources: does the money from Veterans benefits lose the exempt status?

Thanks Greg


Asked on 10/20/10, 10:25 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

No, the exempt status of such funds is not governed by the kind of account in which they are deposited.

However, if such funds are comingled with other money from non-exempt sources, there's a high probability (in my opinion) that they could lose their exempt status unless their path of deposit and cominglement could be clearly traced and established..

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Answered on 10/26/10, 6:01 am


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