Can the government take a home from me if I owe federal student loans that are under an income based repayment plan?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can the government take a home from me if I owe federal student loans that are under an income based repayment plan?
I have a toddler and would love to become a homeowner.
Asked on February 20, 2018 under Bankruptcy Law, Florida
Answers:
Eric Olsen / HELPS Nonprofit Law Firm
Answered 6 years ago | Contributor
The simple answer is no. There is no income tax from an inheritance. It is not the practice of student loans to file lawsuits, only garnish 15% of wagers or social security. Garnishment of ss can almost be stopped for lower income persons. Your inheritance will not affect your qualifications for income contingent repayment for a zero dollar payment
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
So gifts and inheritance are not typically considered "income" but it all depends on how the IRS will view the sale and the resultant money. If you are selling then immediately buying that can also influence the outcome tax wise. The government will not "take" your home but your income may be adjusted for the year that this all happens. An accountant is best to tell you how this will all work and a consultation with one will be invaluable to you in planning this all. Also, understand that your income could be readjusted for this one year and then adjusted again the following year. The one time influx of money does not throw you out of the program. 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.