Legal Question in Credit and Debt Law in North Carolina

No. You are the owner, not your mother, and the government or lender cannot seize the assets. In any event, life insurance owned by your mom might be exempt, meaning it cannot be taken if a judgment is obtained.

I do not handle student loans, but if mom took this out for you, why are you allowing this to occur? You got the benefit of the education, not mom. You ought to see what can be done to try and help mom out by repaying the loan and getting it out of default.

This is mom's issue and I cannot ethically speak about mom's problems with you. I also do not know if mom is in NC or not. I am only licensed in GA, PA & NC. I suggest that mom speak to an attorney that handles educational student loans and have the attorney review her paperwork.

If this was a federal government student loan, then it is generally not dischargeable in bankruptcy absent hardship. And the feds can garnish wages, although you mom is not employed. I am uncertain as to whether unemployment benefits can be garnished. That is why she needs to speak with an attorney who can review her paperwork. Many attorneys offer free consults and case reviews.