My daughter never made any payments i cant reach her she ran away with her boyfriend, would not making any payments on the loan be considered fraud? well i am familiar with the exemptions under Texas law, the thing is that I have been renting my home i don't own another home I live in an apartment, The mortgage in home is payed for. My concern is can the debt collector appoint someone to garnish the payments the tenants make to me? No attorney i have talked to has been able to either answer this for me or helped at all, I know wages cant be garnished but what could they do to intercept those payments? Basically what is asking is can i rent my home if i have this judgment against me? What would be the consequences?
Wages actually CAN be garnished for student loan debt, even in Texas. Not paying back the loan would not be considered fraud, it doesn't sound like you took out the loan without intending to pay it back.
Do you still declare your home your homestead? As I'm sure you probably know, creditors cannot generally not get liens on someone's homestead in Texas. If the home is not your homestead, the creditor will probably try and get a lien on your property.
The main thing you would have to worry about is the creditor garnishing your bank account. Once the rent money hits your bank account, the creditor can seize it. You should try and work out an arrangement with the student loan company.
The information provided in this post is not "legal advice." Rather it is general information on common legal issues. If you have questions concerning your specific situation, it is always best to consult an attorney in your area.
If you are renting out your home then it is likely not a homestead. A creditor can sell non-exempt property to pay off the judgment with a writ of execution. Yes they can also intercept rent payments if they really got aggressive. One way they could do this by appointing a receiver who could take over your mail and take the payments because rent payments are not protected. Also private student loan lenders can garnish wages if the loan was guaranteed by the State of Texas or Federal government.
If you still have a homestead exemption on this property then you should move back in and not rent it out so there is no question that is is your homestead and protected against this creditor. If you own the property without a homestead exemption the creditor will likely find it and will most likely try to have it sold with a writ of execution.
My comments are not legal advice and are for informational purposes only.
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