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