Can school loans come after my injury settlement if I'm in good standing or forbearance?

Attorney answers (3)

1. Licensed in NJ

   

   Michael DuffyPro

   Philadelphia Bankruptcy Attorney

   Contributor Level 13

   

   EmailVisit website

   2

   Lawyers agree

   Answered December 19, 2011 10:54. If you're not paying your school loans they are entitled to collected from almost any personal asset, with a few exceptions (certain retirement accounts, public benefits, etc.). A personal injury settlement would be subject to their collection efforts. School loan companies are generally good about working out reasonable repayment plans and there are usually several options. I suggest you call them and try to work something out if you're having difficulties.

   Please note: The information provided here is for general informational purposes only and should not be construed... morePlease note: The information provided here is for general informational purposes only and should not be construed as legal advice or legal opinion on specific facts or circumstances. You should consult an experienced attorney concerning your particular factual situation and any specific legal questions you may have. No attorney-client relationship is created merely through the exchange of information via this web site. Michael J. Duffy will not undertake representation of a client without the client first signing a written retainer and representation agreement. less

   • Mark as helpful
   • Flag
2. Licensed in NJ

   

   Scott Goldstein

   Denville Chapter 7 Bankruptcy Attorney

   Contributor Level 8

   2

   Lawyers agree

   Answered December 19, 2011 12:24. If you are not in default of your loans, there is likely nothing in the loan agreement that would entitle the lender to take any money that is not a normal payment. The lender is only entitled to collect per the settlement agreement or, if you are in default, through ordinary means such as garnishment.

   Please note that I am not admitted to practice outside of the States of New York and New Jersey. Anything stated... morePlease note that I am not admitted to practice outside of the States of New York and New Jersey. Anything stated by me in this forum is for general informational purposes and is not intended to be taken as attempting to practice law in any juridiction in which I am not licensed. Further, the reading of these answers is merely for informational purposes only and does not create an attorney-client relationship absent the signing of a retainer agreement. less

   • Mark as helpful
   • Flag
3. Licensed in NJ

   

   John W Hargrave

   Barrington Bankruptcy Attorney

   Contributor Level 4

   1

   Lawyer agrees

   Answered December 21, 2011 16:52. The simple answer to your question is NO. Unless the lender has sued you and gotten a judgment against you they cannot go after the money you receive in an injury settlement. If any creditor has gotten a judgment against you then the money you receive from your personal injury settlement may be in jeopardy. If you are considering filing for bankruptcy talk to a bankruptcy lawyer NOW. You may be able to protect all of the money you will be getting if you file a bankruptcy petition before you receive the money. Whether it is better to file a bankruptcy case now is a very fact sensitive question that should be answered only by an experienced bankruptcy attorney.

   • Mark as helpful
   • Flag