How can I protect joint assets ifI’m being sued for a defaulted student loan?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 9 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.

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption