Legal Question in Credit and Debt Law in California
student defaulted laons and injury claim settlements?
I have been on permenent disability since 1996, but I had a educational laon go into default in 1986. The student laon is currently still in default status yet I need to file a claim for injury related to premises liability. Is it likely that the student loan provider/providers may garnish the claim settlement and if so is there any way to provent the garnishment from occurring. I recently requested permenent disability discharg packet but I am not sure if the time frame will prevent interference from the state educational department?
1 Answer from Attorneys
Re: student defaulted laons and injury claim settlements?
They may be able to go after your settlement. You might be able to protect it with a special needs trust, but that needs to be done at time of settlement.