If my wife has a private student loan that is secured by her only,what can happen to our assets if she defaults?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my wife has a private student loan that is secured by her only,what can happen to our assets if she defaults?
We are not able to pay for right now since I lost my job. We try to negotiate with a bank but they just put account in collections. What can they do? Worst case scenario? Can they attach to my wife’s wages or freeze our bank accounts? What roll does community property plays in it?
Asked on August 15, 2011 California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your situation. What will happen now is that the collection agency will try and collect from you. Once they realize that it is futile then they will put the matter in to suit and try and sue your wife for the money. Once they place it in suit you may in fact have a better chance of negotiating a payment that you can afford and explaining to the judge the situation at hand. If there is a judgement against your wife then they can indeed garnish her salary and attach anything in her name. Even joint accounts and joint tax refunds. So please do not ignore any legal documents that come to her. Try negotiating the matter with the collection agency. Get supervisors on the phone and not reguar customer service people. They have no real authority. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.