Student loan in collections...can they go after the co-signer's 401k?

[Tuco]

Sup fam,

My brother has a student loan that went to collections that our mom co-signed on. He owes $19k. They got a call yesterday wanting $15k 'immediately' to settle it, and they want info on my mom's 401k....which she "annuitized" (sp?). It's her only source of income and its fixed.

Can they realistically go after her 401k? Or was that just scare tactics?

 

[incogneg]

Sup fam,

My brother has a student loan that went to collections that our mom co-signed on. He owes $19k. They got a call yesterday wanting $15k 'immediately' to settle it, and they want info on my mom's 401k....which she "annuitized" (sp?). It's her only source of income and its fixed.

Can they realistically go after her 401k? Or was that just scare tactics?

Sorry to hear that. Another option is to contact free legal aid resources in your area, they can help with something like that, or for a small fee there's an 'ask a lawyer' website I think. It also depends on if it's a Federal or private loan...

Good luck! The collection agencies tell all kinds of lies, so I wouldn't doubt it.

 

[2211]

I don't think that is legal, but keep in mind that must debt can be negotiate if you know how to play your cards, if they approach you with a discount i bet you can get a much lower price than the one they quote you.

 

[directlive]

I used to work in collections...
The answer is yes and no.
If she has it deposited to a checking or savings account then yes, all accounts like these can be garnished.
If she gets a paper check then no...they have no way of knowing about the paper check.

The Fair Debt Collection Practices Act
Get familiar with this...it's a lot of reading but it's beneficial.
I got in trouble not adhering to this...got called out on it...made me think twice before I said some off the wall stuff.

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.shtm

 

[playahaitian]

I used to work in collections...
The answer is yes and no.
If she has it deposited to a checking or savings account then yes, all accounts like these can be garnished.
If she gets a paper check then no...they have no way of knowing about the paper check.

The Fair Debt Collection Practices Act
Get familiar with this...it's a lot of reading but it's beneficial.
I got in trouble not adhering to this...got called out on it...made me think twice before I said some off the wall stuff.

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.shtm

good stuff

 

[Lick]

Sup fam,

My brother has a student loan that went to collections that our mom co-signed on. He owes $19k. They got a call yesterday wanting $15k 'immediately' to settle it, and they want info on my mom's 401k....which she "annuitized" (sp?). It's her only source of income and its fixed.

Can they realistically go after her 401k? Or was that just scare tactics?

First, do not give out any information about what you have. You are NOT required to give them or anyone info about any retirement accounts. Make payments that you can afford. If the calls trouble you then tell them they cannot call you. Please send letters. Contact legal that practice in this field.
http://www.ftc.gov/os/statutes/031224fcra.pdf
http://www.ftc.gov/os/statutes/2-fedreg.htm

btw... the Goldmens could not mess with OJ's retirement. Nether can they unless you let them.

 

[The Untouchable GDFOLKS]

good thread

 

[JazzyBenz]

Great Info!

 

[TurellSmith]

Where to Get Help
If you need help with a defaulted student loan, contact the Department of Education's Ombudsman at 877-557-2575 or visit its website at www.fsahelp.ed.gov. But first you must take steps to resolve your loan problem on your own (there is a checklist of required steps on the website), or the Ombudsman will not assist you.

http://www.nolo.com/legal-encyclopedia/default-student-loan-29859.html