Revised April 10, 2015
VI.iv.3.1.aDefinition: Garnishment
A garnishment is a legal procedure, authorized by a court order, by which a creditor can collect what a debtor owes by reaching the debtor's property when the debtor does not possess the property.
VI.iv.3.1.bLegal Authority for Garnishing VA Benefits
There is no statutory prohibition against the garnishment of military retired pay (MRP) when the Veteran is in receipt of Department of Veterans Affairs (VA) disability compensation.Under Public Law 95-30 , a Veteran’s disability compensation may be garnished in order to pay alimony or child support pursuant to a court order only if the Veteran receives disability compensation in lieu of an equal amount of MRP, in accordance with a total or partial MRP waiver. In these cases, under 5 CFR 581.103, finance activity and the Veterans Service Center (VSC)
- withhold disability compensation, and
- make a payment in compliance with the garnishment order for certain categories of payees.
Reference: For more information on the responsibilities of finance activity and the VSC see, M21-1, Part VI, Subpart iv, 3.2.
2Processing a Garnishment Order
This topic contains instructions for processing a garnishment order that involves a Veteran who is receiving disability compensation in lieu of MRP, including
- actions to take upon receipt of a garnishment order
- finance activity responsibilities with regard to garnishment orders
- VSC responsibilities with regard to garnishment orders
- responsibility for making delinquent and recurring payments and notifying the Veteran, and
- handling changes in the amount of disability compensation or MRP.
Revised March 9, 2026
VI.iv.3.2.aActions to Take Upon Receipt of a Garnishment Order
Upon receipt of any court garnishment order involving a Veteran who receives VA disability compensation in lieu of MRP, deliver a copy of the court order to the local Finance Officer (FO).
VI.iv.3.2.bFinance Activity Responsibilities With Regard to Garnishment Orders
The table below describes the actions an FO takes when processing a garnishment order.
| Stage | Description |
|---|---|
1 | The FO reviews the claims folder to determine initial withholding activity under 5 CFR 581.103. |
2 | The FO
|
3 | Under either of the following circumstances, the FO refers the garnishment order to District Counsel:
|
4 | The FO takes the actions described in the table below and works with District Counsel to resolve any questions that arise. Important: If the FO referred the garnishment order to District Counsel in Stage 3, the FO takes the actions described in the table below after District Counsel has completed its review of the order and provided guidance to the FO. If the garnishment order … Then the FO … |
involves a dependent on the Veteran’s award | forwards the order to the VSC. |
does not involve a dependent on the Veteran’s award | arranges withholding and payment from the Veteran’s award via the Enterprise Management of Payments, Workload, and Reporting for VA (eMPWR-VA). |
VI.iv.3.2.cVSC Responsibilities With Regard to Garnishment Orders
When a VSC receives a garnishment order from an FO because the order involves a dependent on a Veteran’s award, the authorization activity processes the garnishment as an award allotment in the Veterans Benefits Management System - Awards (VBMS-A) by selecting GARNISHMENT PROCESSED in the ALLOTMENT screen under the DECISION tab.Decision notice must be sent separately to the Veteran and to the dependent. The decision notice must inform them, in addition to the required elements discussed in M21-1, Part VI, Subpart i, 1.B.1.b and M21-1, Part VI, Subpart i, 1.B.4.a, that
- they may appeal to the Board of Veteran’s Appeals regarding the
- withholding accuracy, and
- effective date, but
- they may not appeal the provisions or legality of the garnishment order.
Important : A garnishment is a legal procedure authorized by a court order that stipulates the amount to be paid to a specific payee. Therefore, a fiduciary must not be appointed for garnishments paid on behalf of a minor.Reference: For more information on processing garnishments in VBMS-A, see the _VBMS Awards User Guide. _
VI.iv.3.2.dResponsibility for Making Delinquent and Recurring Payments and Notifying the Veteran
If the garnishment order mandates a specific amount be paid (a delinquent payment) with
- no recurring payments, the FO * makes the delinquent payment, and * notifies the Veteran, or
- recurring payments, the FO
- makes the delinquent payment
- awards recurring payments via eMPWR-VA, and
- notifies the Veteran.
VI.iv.3.2.eHandling Changes in the Amount of Disability Compensation or MRP
If VA is garnishing a Veteran’s disability compensation, and the amount of disability compensation or MRP to which the Veteran is entitled changes (for reasons other than a cost-of-living adjustment), the authorization activity reviews the claims folder to determine if action to adjust the garnishment may be necessary. If adjustment of the garnishment is necessary
- download relevant documentation from the Veteran’s eFolder, and
- e-mail the documentation to the local FO.
Note: Complete all actions locally even if the garnishment order was originally processed elsewhere.
End of Part VI, Subpart iv, Chapter 3