Legal Question in Bankruptcy in Michigan

Student Loans- Garnish wages

1. Can you add a non-federal student loan to a bankruptcy file? Loan did not come from Department of Education, it's more like a personal loan.

Example.(Microsoft IT Skills Career Loan)

2. Does the state of michigan require wage garnishment if filing chapter 13 bankruptcy?


Asked on 12/14/00, 12:45 pm

1 Answer from Attorneys

Don Darnell Darnell & Lulgjuraj, P.C.

Re: Student Loans- Garnish wages

To your first question, student loans are not dischargable in bankruptcy. However, what defines a "student loan" is really your question. A student loan, for purposes of bankruptcy, is either federally gauranteed, or a non-profit lending institution.

With regard to your second question, an order for wage withholding is not required, but may often help in selling the "plan" to the trustee.

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Answered on 12/16/00, 8:54 am


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