QUESTION
What can the collection take as a student loan payment?
Asked on Dec 16th, 2011 on Bankruptcy - North Carolina
More details to this question:
I'm the cosigner of my daughter's student loan which is $18k. Since my daughter can't pay, the debt collection agency is coming after me. I can't pay it on their terms, What will they come after; car, home, SSI/Pension, IRS return - for resolution?
2 ANSWERS
I general, the collection agency would have to sue you and obtain a judgment before they are able to commence an execution against your assets. In the state of New York, certain types of income are exempt from seizure. Be aware that it is important to identify whether the loan in question is a 'private loan' or whether it is federally guaranteed. There may be a way to negotiate repayment terms that are agreeable to both you and the collection agency.
Answered on Dec 20th, 2011 at 12:30 PM
Business Bankruptcy Attorney serving Raleigh, NC
at
J.M. Cook, P.A.
Update Your Profile
The lender can seek a judgment against you as co-signer. If they do so, they can enforce that judgment by having the Sheriff sell your property. You have the right to exempt certain assets from collection.
Answered on Dec 20th, 2011 at 11:26 AM