How can I protect joint assets ifI’m being sued for a defaulted student loan?
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How can I protect joint assets ifI’m being sued for a defaulted student loan?
Before I got married I took out a federal student loan, which is now in default. I was just served a summons. I also received a financial statement to fill out. The house is in both our names; I don’t work and my husband is permanently disabled. When filling out the financial statement do I have to put his information too? Can they put a lien on our house or take the checking account? Can he take my name off the checking account now? I’ve tried to work with the agencies through the years but would only take payment in full. Now I owe alot more.
Asked on July 17, 2011 under Bankruptcy Law, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In most States in this country, there is a provision for the filing of a "Homestead Exemption" by an owner of a home to protect his or her wonership interests from creditos up to a certain dollar amount. Some States in this country have automatic "Homestead Exemption" laws precluding a creditor from taking equity out of a person's home up to a certain amount. The laws of each State in this country vary on the subject.
Additionally, some States have laws that the spouse of the other who is obligated on the debt claimed is not obligated to have her or his share of the community assets used to pay the debt if the obligation for the debt arose before marriage. If the obligation of the one spouse who is being sued upon arose after marriage, the assets of the marriage in some States under community property laws may be subject to only one-half of the obligation.
It sounds as though you need to consult with a good debt collection defense lawyer to resolve your situation.
You need to answer the summons with a pleading in court or you will lose by default. Perhaps working out a payment plan may help?
Good luck.
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