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Student Loan Debt Issues with debt arising from student loans and education expenses.

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Old 09-01-2009, 08:43 AM
clevas88 clevas88 is offline
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Question Student Loan Garnishment - Just Laid Off
My question involves collection proceedings in the State of: Missouri

For the past year or so, my paychecks have been garnished for a student loan debt. Last week, I was laid off from my job, but I will be receiving severance pay which I plan to deposit to my checking account. I am also filing for unemployment. Can the creditor make garnishments from my bank account now? Some people have said they can't, some have said they can freeze or totally wipe out your accounts. I would rather try to work something out with them, but I doubt it'll get me anywhere. Any info/advice would be greatly appreciated. Thank you!
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Old 09-01-2009, 10:13 AM
LawResearcherMissy LawResearcherMissy is offline
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Default Re: Student Loan Garnishment - Just Laid Off
Unemployment may only be garnished for child support/alimony. You'll need to alert your bank and the creditor that the money deposited is from UI.

Your severance is another matter. You might consider depositing that elsewhere.
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