Legal Question in Credit and Debt Law in Utah

Student Loand Problems

My wife took out a student loan in 1988, long before we were married. The school closed 2-3 weeks prior to her receiving her diploma. She was unable to complete the education that she had paid for.

Jump forward to 2001, and we have now received notification of wage garnishment for my wife for this loan. I did some research at the dept of ed website, and it indicates that she is elegible for discharge of this loan and the school is even listed on the site. The collection agency is wanting $5000 down and huge monthly payments.

While we are waiting for the dept of ed, can the collection agency garnish MY wages or bank account ( one that my wife is not on )? HELP PLEASE!!!

Jeff


Asked on 6/20/01, 4:55 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Student Loand Problems

A collection agency cannot garnish an account or wages from a party who is not responsible. If you did not sign any documents you are not personally liable. You must immediately object to the garnishment and request a hearing. You should talk to the attorney for the agency and demand (1) proof of liability on the school loan and (2) explain to the attorney what the facts are.

If you do nothing your wages probably will be garnished and you will then have to fight for their return.

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Answered on 6/29/01, 1:01 pm


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