Can 401k be offset/garnished to repay defaulted student loans? 6 Answers as of March 24, 2011

Can 401k be offset/garnished to repay defaulted student loans?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
No, but your social security benefits are subject to garnishment. These loans are a huge problem if you don't pay them, The interest will continue to accumulate. The situation just gets worse and worse. Try to make a payment that at least covers the interest so the debt doesn't keep growing.
Answer Applies to: California
Replied: 3/24/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Your 401K is exempt and cannot be garnished.
Answer Applies to: Washington
Replied: 3/23/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
A 401K is exempt from enforcement action in California, except under certain circumstances for child and spousal support (Cal Code of Civil Procedure sections 704.115, 703.070).
Answer Applies to: California
Replied: 3/23/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
I don't think that would be legal
Answer Applies to: South Dakota
Replied: 3/23/2011
The Doan Law Firm
The Doan Law Firm | Shawn Doan
401(k), if properly set up and Erisa qualified, is protected from the reach of creditors.
Answer Applies to: California
Replied: 3/22/2011
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