Results 1 to 2 of 2
  1. #1
    Join Date
    Apr 2009
    Posts
    1

    Default Non-Bankruptcy Exemptions, Clarification Please

    My question involves bankruptcy in the state of: KS

    My question revolves around whether my student loan money will be absorbed during bankruptcy proceedings, this could hinder my ability to continue attending college. I haven't received my book on chapter 7 yet and I plan on doing a lot of research before I dive into this, but I was wondering if someone could clarify how non-bankruptcy exemptions work. I am currently unemployed also if that makes the question any easier.

    As you may know Kansas requires you follow their own exemptions, but from what I have seen you also are guaranteed non-bankruptcy exemptions when filing in these states. The one that pertains to my question is USC 1095a(d):

    "(d) No attachment of student assistance
    Except as authorized in this section, notwithstanding any other provision of Federal or State law, no grant, loan, or work assistance awarded under this subchapter and part C of subchapter I of chapter 34 of title 42, or property traceable to such assistance, shall be subject to garnishment or attachment in order to satisfy any debt owed by the student awarded such assistance, other than a debt owed to the Secretary and arising under this subchapter and part C of subchapter I of chapter 34 of title 42."

    I was just wanting someone to clarify that this money intended for college (federal Stafford loans only, no private) would be safe or if I missed something and am going to end up between a rock and a hard spot.

    Thank you for your time.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Non-Bankruptcy Exemptions, Clarification Please

    You should be able to avail yourself of that exemption from garnishment in bankruptcy, but you're generally better served by not having a pot of cash sitting in a bank account when you file so you don't have to explain.

    1. Sponsored Links
       

Similar Threads

  1. Chapter 7: California Bankruptcy Exemptions
    By oaktree68 in forum Bankruptcy Law
    Replies: 1
    Last Post: 09-12-2010, 10:49 AM
  2. Chapter 7: Requirements and Exemptions for Chapter 7 Bankruptcy
    By MeitHed in forum Bankruptcy Law
    Replies: 1
    Last Post: 09-29-2006, 06:23 PM
  3. Chapter 7: Exemptions in Chapter 7 Bankruptcy
    By szarmadzag in forum Bankruptcy Law
    Replies: 1
    Last Post: 11-08-2005, 05:26 PM
  4. Bankruptcy Issues: California Bankruptcy Exemptions
    By CAB in CA in forum Bankruptcy Law
    Replies: 2
    Last Post: 10-31-2005, 01:02 PM
  5. Chapter 13: Chapter 13 bankruptcy exemptions
    By jeremy24175 in forum Bankruptcy Law
    Replies: 1
    Last Post: 10-30-2005, 04:50 PM
 
 
Sponsored Links

Legal Help, Information and Resources