Liens on SS back pay

Date: Wed, 12/22/2010 - 04:34

Submitted by anonymous
on Wed, 12/22/2010 - 04:34

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Total Replies: 2

Liens on SS back pay

My friend cosigned for his daughter's student loans which she defaulted on. He was sued by the state and the case was dismissed without prejudice because he became disabled after he signed the loans. He now is going to get back pay from social security/disability in an amount larger than the loans. That money has to be paid back to the long-term disability insurers. If he deposits the ss check and it takes a month to get the amount from the LTD people, can the loan people freeze the account and take the money?

If these were federal student loans and they find out the money

If these were federal student loans and they find out the money is there, they could. It's unlikely they would have that quick of a turn around (30 days), however. If it's a huge concern, he could always deposit the money onto a pre-paid credit card. That way he would have access to it, if needed and there would be no danger of having an account levied.

lrhall41

Submitted by OhioGal1 on Wed, 12/22/2010 - 06:01

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Few things wrong with this....only private loans have cosignors,

Few things wrong with this....only private loans have cosignors, so the state is not involved. Plus with private loans there is no provision for disability and you still can and will get sued. If this was a PLUS loan taken out by the parent for the student (the paarent is the primary, no cosignor involved) they can garnish without a court order and they rarely sue. Sounds like the whole story is not being told.

lrhall41

Submitted by SOAPLADY on Wed, 12/22/2010 - 14:05

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