If my wife has a private student loan that is secured by her only,what can happen to our assets if she defaults?
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If my wife has a private student loan that is secured by her only,what can happen to our assets if she defaults?
We are not able to pay for right now since I lost my job. We try to negotiate with a bank but they just put account in collections. What can they do? Worst case scenario? Can they attach to my wife’s wages or freeze our bank accounts? What roll does community property plays in it?
Asked on August 15, 2011 California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
I am so sorry for your situation. What will happen now is that the collection agency will try and collect from you. Once they realize that it is futile then they will put the matter in to suit and try and sue your wife for the money. Once they place it in suit you may in fact have a better chance of negotiating a payment that you can afford and explaining to the judge the situation at hand. If there is a judgement against your wife then they can indeed garnish her salary and attach anything in her name. Even joint accounts and joint tax refunds. So please do not ignore any legal documents that come to her. Try negotiating the matter with the collection agency. Get supervisors on the phone and not reguar customer service people. They have no real authority. Good luck.
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