Question:

I have an account jointly with my wife that the only money that is direct deposited is my monthly disability benefits. North Dakota placed a lien on the account for my wife’s back owed child support. Navy federal refuses to release my funds to me because they are saying they don’t recognize VA funds as protected when federal laws state otherwise. What are my best options to go after not only the bank but also the state of North Dakota?

Jim's Reply:

Your options to "go after" the bank and South Dakota lie somewhere between none and none.

You shared the account with another person and their SSN and the folks who placed a lien on the account would tell you they have no idea of what money belongs to who so they are allowed to and will force a hold on it. I doubt they're interested in hearing your side of the story since they have your money.

Had the account been in your name only and no other deposit than your VA money had ever been put into that account, that money could not have been garnished or if it were you'd have a good argument to have it released. Once the money is blended with other money or the account with another SSN, it's a pretty common practice that the entire account is retained for whatever the hold is all about.

You can speak to a veterans law attorney here https://www.vetadvocates.org/cpages/sustaining-members-directory and see if someone might have a better response but this has been my experience.