Legal Question in Credit and Debt Law in Illinois

I co-signed on a student loan several years ago for a former friend. He has never paid a dime back so I was making payments on it until about 8 months ago. I have recently been getting phone calls from either a debt collection agency, or an attorneys office representing the loan company or the collection agency. I know that they can get a judgment to drain my bank accounts, and garnish my wages, but can they also put a lien on my home? The house is owned in my trust. I am married. If I take myself off of our bank accounts and leave only my wife on them, will this avoid them getting that money? I have also moved much of our savings into cash in a safe deposit box. Will that keep it safe, or can the judgment allow them to enter that and confiscate any cash in there? Can they liquidate stock I own?


Asked on 1/09/11, 10:33 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

If a judgment is entered against you, the creditor would be able to obtain any non-exempt assets (do an internet search for "exempt assets illinois" to see what is exempt--everything else is non-exempt). A judgment creditor can also garnish your wages. Be careful with conveying assets, it might be considered a fraudulent conveyance to avoid or hinder a creditor. There are very rare instances when student loans can be discharged in bankruptcy, so you might contact a bankruptcy attorney in your area for further guidance and advice.

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Answered on 1/17/11, 8:47 am


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