Student Loan Creditors and Social Security Benefits

Student Loan Creditors and Social Security Benefits
Your creditors cannot garnish your social security benefits directly from the Social Security Administration. But you still want to avoid commingling your social security money with other funds in your bank account. For more information about the commingling issue see my article entitled, “Social Security Benefits and Bankruptcy.”
There is an exception to this, however. If you default on your federal student loans, the United States government can garnish your social security benefits. So the key to protecting your social security benefits is not to be in default. If you are having difficulty paying your student loans, you can contact the United Stated Department of Education and ask about being put on an income based repayment plan. These income based repayment plans can go all the way down to $0.00 per month, subject to annual review. If you are permanently and totally disabled, you may qualify for a Total and Permanent Disability Discharge through the United States Department of Education.
The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.
By: Michael Benkstein, Esq.
Managing Attorney, Bankruptcy Department
The Law Offices of Joumana Kayrouz, PLLC
1000 Town Center
Suite 800
Southfield, MI 48075
(phone) 248-557-3645
(fax) 248-200-0645

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