My friend is filing a chapter 7 petition this Monday. She receives disability and President Obama approve and $250 check for those on disability. Well my friend got a letter saying her check entire check is being garnished for a student loan and will be mailed this Monday )the same day she is filing her chapter 7 bk. Doesn't the automatic stay entitle her to stop this gaarnishment and receive a refund if it is still sent out?
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If they mail it the same day that she files it probably won't stop the transaction not without her fighting it.May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed. -
Is she in default of her SL?
She is probably subject to a treasury offset. If the refund is garnished after she files, she may get it back, if it is garnished before, probably not.
Has she thought about consolidating her SL through the William Ford program?
IF she has federally backed loans, she may be able to get out of default or rehabiliate her loans through WF.
I have posted some info in the SL forum regarding this program, search for my posts in the SL program to find some helpful links and info.Comment
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