Newman v. Veterans Administration (In Re John)

MEMORANDUM AND DECISION

EDWARD D. HAYES, Bankruptcy Judge.

This action was brought by the debtor seeking an Order of the Court finding that the Veterans Administration, hereinafter referred to as VA, could not continue to withhold the periodic disability payments until the amount equals the lump sum disability severance pay which he received from the United States Army for the same disability. He also seeks to have the liability to repay the lump sum payment declared a debt dischargeable in bankruptcy.

The facts have been stipulated and the parties have submitted briefs. From the stipulations,…