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Re: Does anyone know?? Garnishment & Student Loans
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Posted by cddfisher (64.12.96.205) on January 24, 2003 at 16:17:33:
In Reply to: Re: Does anyone know?? Garnishment & Student Loans posted by LadynRed on January 24, 2003 at 10:34:43:
I think my prior reply clarifies it for the original post. The Ladynred reply shows either I or she may not understand the original post. As I understood it, the poster took out a student loan and the money was deposited to his or her account. A judgment creditor then attached those funds. While Student Loan obligations due to creditors are generally not dischargeable in banruptcy absent a showing of undue hardship (11 USC Section 523(a)(8)) that is not the same thing as whether money from student loans deposited to a person's bank account is exempt from garnishment. I am unaware of any such state law garnishment exemption. Garnishment exemptions include SSI, welfare , most wages earned etc. If a person took a student loan and it was deposited to their account and a creditor executed before the borrower could pay the school, I believe that money can be taken by the creditor as it has no exemption under any state law. Regardless, the separate issue is how to get it back. Outside of bankruptcy law, I would not be aware of any method absent a specific state exemption. In Bankruptcy, it is likely the subject of a preferential payment to the attaching judgment creditor so long as the filing is within 90 days of the taking. I would repeat that the poster should really consult an attorney in his or her state that handles consumer bankrupties. They are not that expensive.
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