It appears that your income is exempt, but that does not mean that your bank account cannot be garnished. If the creditor gets a judgment then it can garnish your bank account and then you would have to go in and prove your exemption. In the meantime your bank account will be frozen, and you will have additional expenses. You should consult with bankrutptcy counsel right away. Good luck!
This general response is not intended to be legal advice because I don't have all the facts. The particular facts in each instance will change the recommendation significantly. Any statements made in your posting on Avvo are not protected by the attorney-client privilege because they are shared with third parties. I require a written contract for legal services, so an attorney-client relationship may not be presumed merely by my response to an Avvo posting.
Talk to a debt collection attorney right away -- your assets can indeed be seized under the right circumstances.
In no way am I offering you legal advice, and in no way has my comment created an attorney-client relationship. You are not to rely upon my note above in any way, but insted need to sit down with counsel and share all relevant facts before receiving fully-informed legal advice. If you want to be completely sure of your rights, you must sit down with an experienced criminal defense attorney to be fully aware of your rights.
Generally, VA comp and Social Security are exempt from garnishment: http://www.consumer.ftc.gov/articles/0114-garnishing-federal-benefits
At any rate, it is rarely a good idea to have a judgment on your record. Consult a consumer lawyer in your area to best protect your rights. A good source for a list of consumer lawyers is the NACA website:
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