Question:
I'm 100% service-connected. If I purchase vs lease a car; will the IRS or any creditors be able to make me sell my asset, to satisfy any outstanding taxes, if the purchase is made with VA. disability pay?
Jim's Reply:
Your question is much more complex than you realize. In a nutshell, VA disability pay can not be garnished to pay for debt.
But VA disability pay may be clawed back if you owe federal debt (IRS, student loans) and it may be apportioned if you owe child support or alimony.
So far as any automotive purchases or leases or rentals go, your method of payment won't have anything to do with any financial transaction in the future. If you fall behind on payments, the vehicle may be repoed no matter how you've paid for it.
I don't know that anyone can make you sell existing assets to pay taxes. That's a new one on me and you'd have to consult a tax lawyer to be sure but that doesn't sound realistic. Otherwise, make the best deal you can, keep timely with payments and you won't have any problems.