What happens if we cant pay for my wifes private student loan? 17 Answers as of June 26, 2013

My wife has a private student loan of 12k that secured by her only that was not discharged in the bankruptcy. I lost my job and we are not able to pay. What can bank do? What about community property? Can they attach to her wages or freeze our bank accounts?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
You will not likely be able to discharge the student loans in BK. However, if you file a Chapter 13, you can hold the student loans at bay for 5 years (interest keeps piling up though).
Answer Applies to: Washington
Replied: 8/24/2011
Law Office of John C. Farrell, Jr.
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
If you are in MA then it is not a "community property" state. Student loans are very agressive whne it comes to defaults. They do have the means of levy of bank accounts and wage garnishment.
Answer Applies to: Massachusetts
Replied: 8/21/2011
Lakelaw - Loop Bankruptcy
Lakelaw - Loop Bankruptcy | David Leibowitz
If it is a community debt, then community property is liable. This could be so if you live in Wisconsin, but not in Illinois. I doubt you'll see wage attachments or bank freezes unless you get sued and the loan goes to judgment.
Answer Applies to: Illinois
Replied: 8/20/2011
Heupel Law
Heupel Law | Kevin Heupel
The creditor can garnish wages, bank accounts, and tax refunds in order to collect the debt.
Answer Applies to: Colorado
Replied: 8/19/2011
Ross Smith, Attorney at Law
Ross Smith, Attorney at Law | Charles Ross Smith III
Ohio is not a community property state. So unless you have previously lived in a community property state, you are OK. But your wife has a problem. If she is not working, she should ask for any kind of deferment possible. If that is not possible, she can file a Chapter 13 plan just for the purpose of paying off her student loans. Yes, the student loans are so too subject to the jurisdiction of the Bankruptcy Court. You need to have some ability to pay to file a 13, so a job is usually needed. If you don't communicate and don't pay, that's when bad things happen. Student loans have many really extraordinary means of collecting against your wife. Don't tempt them. Either get into deferment, make a deal to pay, or get into a Chapter 13. Good luck.
Answer Applies to: Ohio
Replied: 8/18/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Student loans are not dischargeable in Bankruptcy. You must contact the company and attempt to use their deferment programs. All student loan companies have programs designed to hold off on payment for people who run into financial hardship. Please contact them immediately.
    Answer Applies to: New Hampshire
    Replied: 8/18/2011
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    Student loans are very difficult to discharge www.mvnlaw.com.
    Answer Applies to: New York
    Replied: 6/26/2013
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Private student loans cannot be discharged in bankruptcy. They can certainly go after her bank accounts and wages.
    Answer Applies to: Georgia
    Replied: 8/17/2011
    Law Office of Raymond J. Dague, PLLC
    Law Office of Raymond J. Dague, PLLC | Raymond J. Dague
    Your various questions about your wife's student loan are a bit complex. You are not responsible for your wife's student loans unless you and she refinance them into a common debt. Don't do that. Also, they can sue her and garnish her wages, but not yours. The best way to protect your money is to have it in your name alone but not in her name. That way the student loan people cannot reach the money in your account. As for your question about community property, New York does not use that legal concept, so that is inapplicable to New York bankruptcy and debtor/creditor cases.
    Answer Applies to: New York
    Replied: 8/17/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Student loans survive bankruptcy. If the debt is reduced to a judgment it can be enforced. There are many kinds of collection procedures, including wage garnishment and bank levy. Try to make a monthly payment settlement offer.
    Answer Applies to: California
    Replied: 8/17/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    The bank can pursue all normal collection actions including filing suit to collect the balance owed. Once the bank obtains a judgment, the bank can issue a garnishment or levy on joint bank accounts. If you have no liability on the debt, it might be wise for you to have your money in separate accounts. Depending on when your wife filed her last case, she may be eligible to file a Chapter 13 case and pay the student loans over a 5 year period of time. If she is able to pay the loans over the 5 years, the bank would be stayed from filing suit, garnishing her wages, or seizing her assets.
    Answer Applies to: Alabama
    Replied: 8/17/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    worse than that.... they do nothing and let the interest accrue so that the debt grows huge. At least try to pay the interest so the debt does not grow. Not likely they will garnish or attach, that requires a lawsuit first.
    Answer Applies to: California
    Replied: 8/17/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Unfortunately, there is not much that can be done about student loans. They are non dischargeable and have to be paid.
    Answer Applies to: California
    Replied: 8/17/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    In the state of Michigan there is no such concept of "community property". The bank can garnish bank accounts and wages.
    Answer Applies to: Michigan
    Replied: 8/17/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    I think a private student loan is discharged and most jurisdictions, as far as I know, allow non-listed creditors to be discharged by simply sending them a notice of the discharge after it happens. If it was an asset case it's all different. If it's not dischargeable under Bankruptcy law, you can ask for extensions and hardship forebearances. I don't know about community property, but they can attach wages and they can free bank accounts. In case it helps in community property, you can put most of the money in an account in your name only and some in hers.
    Answer Applies to: Virginia
    Replied: 8/17/2011
    Grasso Law Group
    Grasso Law Group | Charles Grasso, Esq.
    Work with the lender directly. Explain that you cannot afford the payments and they should be able to either reduce the payments or defer payments.
    Answer Applies to: California
    Replied: 8/17/2011
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney