A Student Loan Client -- Your Thoughts.

[anykey]

I am too soon to file a 7. And the thing is- there just is not even $50 left over in a month. I had an appointment to see an atty- but I chickened out. I kept thinking I can not afford to file 13.

[MSbklawyer]

http://www.ed.gov/offices/OSFAP/DCS/forms/disable.pdf

Here you go.

Oh- If you do this- send it certified. They conveniently do not get the first one I sent regular.

Thank You! We're trying that route too.

[walkthaplank]

Another option I thought about was having her declared to be incompetent and arguing to the judge that she just didn't have the capacity to contract for the loans.

Nobody who looked this lady in the eye would have ever admitted her to a school, let alone loaned her money to go. She is visibly crazy. She has all the markers of a brain injury case, but she swears that she isn't.

This was my thinking when i read your initial post. Frankly, if she is that visibly nuts, they don't deserve to get the money back. If *I* lent money to somebody who A) was visibly nuts and B) had no means to repay the loan, I would be the one who was insane expecting to get the money back. Unfortunately the sleazebag who got her to take these loans (just to meet a quota) won't be penalized.

Good luck, you are a good man Charlie Brown!

[rrj]

http://www.ed.gov/offices/OSFAP/DCS/forms/disable.pdf

Here you go.

Oh- If you do this- send it certified. They conveniently do not get the first one I sent regular.

anykey

would that form work if there already garninish someone disablity payments

my sister was approved for disibiltiy and there garnish her payment 120.00 a month, they started it last month

her husband died about 2 years ago. so, her check was cut in half. and her son just turned 18 so she making under half of what she used to

she has alot of little loans and payday advances, her house is upside down

she had heart surgery, stints,, she is on oxgen all day, she still gets around, but there no way she can work,

she needs to file but she has no money for a lawyer,

[jribe]

They are mostly private loans. I thought about that. But since they are private loans, she's not eligible for the income contingent thing.

Another option I thought about was having her declared to be incompetent and arguing to the judge that she just didn't have the capacity to contract for the loans.

Nobody who looked this lady in the eye would have ever admitted her to a school, let alone loaned her money to go. She is visibly crazy. She has all the markers of a brain injury case, but she swears that she isn't.

Most states have some type of law against granting admissions and accepting student loans from a person in this condition. Have you checked her state?

If she is "visibly loopy" as you put it, and can't even get through an interview- how in the world did she get through $8,000 worth of college courses? Either she's not giving you the whole story or there's something else going on?

In my opinion- either go after the school for admitting her; or do the Ch. 7 and let them try and garnish the small amount of money she has. What's the interest rate BTW on an 8k loan at $200 a month? That seems a little off to me..

[HakunaMatata]

While it's time-consuming, evaluating her mental diagnoses timeline and meds may be advantageous in proving her long-term instability and potentially deteriorating condition. Her actions appear to be typical of bipolar disorder.

Has she been regularly treated by a psychiatrist? Was her mental condition more stable when she took the loans and attended school (potentially related to meds or a manic phase)? Did she attend an accredited school? Did she receive passing grades? Have meds been adjusted (or neglected) since she was in school? Is your current assessment of her "visibly crazy" behavior correlated to meds?

You have a challenging case on your hands and I applaud you for exploring it!

[frogger]

A lawyer with a heart. Imagine that..........

Another option I thought about was having her declared to be incompetent and arguing to the judge that she just didn't have the capacity to contract for the loans.

I think that this would be the route I would go with. If you can find any of her family, all it takes is for a couple of them to go along and you can get her declared to be incompetent.

After that, check into getting her in to a supported living program. One of the big nation wide ones is Volunteers of America. They offer several different levels of supported living, and become the payee for the consumer.

I have mixed feelings on letting her go pro se, even if you prepared the paperwork. By you being involved, then it is not a true pro se case. She has had advice and help from a lawyer.

Perhaps this is that one time when you do what your heart says, and not your checkbook. If it is that time, don't worry about the money. You will be rewarded in other ways. But with this, as with all charity work, for it to be true charity, then you never tell others. You do it for the benefit of the other person and the benefit of your heart, not for the public glory.

Good luck, and keep us posted.

[NoMoreCards]

I didn't think that Social Security Disability payments could be garnished, except under a very few exceptions, so I looked it up and this is what I found. I am not seeing where private student loans are in the exception list, but clearly I may be missing something.

I applaud your want and desire to help this person. You are indeed a fine person to even consider helping her pro bono with expenses that would have to be paid. Lawyers are clearly human too!!

________________________________


Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:

* Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;
* Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be levied to collect unpaid Federal taxes;
* Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;
* The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and
* The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.

The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act as long as they are identifiable as Social Security benefits using normal banking practices. For example, only social security benefits are deposited into a particular bank account.

If a creditor tries to garnish your social security check, inform them that unless one of the five exceptions apply, your benefits can not be garnished. You also may want to provide this same information to your financial institution and seek legal assistance if you believe it is needed.

[rrj]

I didn't think that Social Security Disability payments could be garnished, except under a very few exceptions, so I looked it up and this is what I found. I am not seeing where private student loans are in the exception list, but clearly I may be missing something.

I applaud your want and desire to help this person. You are indeed a fine person to even consider helping her pro bono with expenses that would have to be paid. Lawyers are clearly human too!!

________________________________


Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:

* Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;
* Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be levied to collect unpaid Federal taxes;
* Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;
* The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and
* The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.

The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act as long as they are identifiable as Social Security benefits using normal banking practices. For example, only social security benefits are deposited into a particular bank account.

If a creditor tries to garnish your social security check, inform them that unless one of the five exceptions apply, your benefits can not be garnished. You also may want to provide this same information to your financial institution and seek legal assistance if you believe it is needed.

my sister loan was probably over 30 years ago
they are garnishee her disabtly check 130.00 something a month

[NoMoreCards]

Incredible. I figured I was missing something, but it was worth the look. It just don't seem right for someone on SSDI.

[anykey]

anykey

would that form work if there already garninish someone disablity payments

my sister was approved for disibiltiy and there garnish her payment 120.00 a month, they started it last month

her husband died about 2 years ago. so, her check was cut in half. and her son just turned 18 so she making under half of what she used to

she has alot of little loans and payday advances, her house is upside down

she had heart surgery, stints,, she is on oxgen all day, she still gets around, but there no way she can work,

she needs to file but she has no money for a lawyer,

I thought they can only take a % of SSDI over $750.

I am still back and forth with these people- to get this zapped.

I figure it is worth a shot. What is the worst that can happen? If a judge ruled a person permanent and total disabled- then that pretty much denotes the status.