Disabled vets have had it tough in enough ways without roadblocks to bankruptcy making it tougher. (Photo: Shutterstock)
In 2005, an overhaul of bankruptcy law shut injured veterans out of protections granted to those receiving disability payments from the Social Security Administration.
Instead, payments to disabled vets from the Department of Veterans Affairs and Department of Defense were classified as disposable income, which meant that they were legally required to use that income to pay off credit card bills, car loans and other consumer debt.
But, according to a Wall Street Journal report, that's about to be rectified with the passage of a bill that "excludes disability payments from the Department of Veterans Affairs and Department of Defense to veterans or their dependent survivors from the classification of disposable income."
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
