Legal Question in Credit and Debt Law in Pennsylvania

I have large student loan debt, mother cosigned, can they seize property given by father's estate?

Asked on 5/13/12, 9:55 am

1 Answer from Attorneys

You do not provide enough information in this post for me to provide an intelligent answer. Who is "they'? Is this a federal student loan or a private lender? Put another way, is this the US DoE? A private lender? Or a debt collector?

Who received property from your father's estate? You? Your mother? If so what was the property? Land? Cash?

What is the status of the student loan? Current? In forbearance/deferrment? Delinquent? How much is owed?

Try re-posting your question with more details and facts.

Your mother co-signing for you was a bad idea. What a co-signer, by signing, says to the lender is that if the primary borrower (you) do not pay then the co-signer (your mother) will pay. Since you are the primary borrower, you need to make sure that your loan is current. If not, the delinquencies go on your mother's credit. Even worse, if the loan is delinquent and she has assets and you don't, they can go after her.

Generally, nobody can seize anything unless and until the lender gets a judgment. If this is in PA, PA provides few exemptions to judgment and no homestead exemption.

I would make an effort to get the loan current. Depending on what kind of loan it is, wage garnishment (or intercept of rax refunds) or garnishment of even federal benefits may be allowed. Student loans are not generally dischargeable in bankruptcy, so that is not an option. Even if it were allowed by one of you, the other party would still owe the debt and be at risk.

Again, try re-posting with more details or see a local attorney that assists with student loans.

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Answered on 5/13/12, 7:04 pm

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