Defaulted Student Loans & 401K's
My daughter forged my signature on a student loan years ago. My social security check is being garnished for it, my tax refunds have been taken. My money is safe in a 401K, but if I move it to an IRA, am I right to assume it will be taken as well? I was told so by a paralegal. I refuse to press charges against my daughter b/c of my young grandchildren. If I did, then the department of education says they would stop garnishment and take it out of my name. They know that I did not sign it, since I sent them proof of my signatures, and writing samples. Because I told them I wouldn't press charges, they denied my request for a loan discharge due to identity theft. What other options do I have? My life savings is at stake, and I need to withdraw the money ASAP. But I'm afraid that once I do and put it in my checking account that the Dept. of Ed. will take it. What are my options? I don't want my grandchildren to see their mother locked up in jail. At the same time, I need to keep a roof over my head. I need to get my money out of my 401K without it being taken for a student loan I never signed for or authorized.
1 Answer from Attorneys
Re: Defaulted Student Loans & 401K's
You may have some options which could possibly meet your needs, but you should consult with an attorney who is experienced in this kind of law. For a free and confidential consultation please contact my office.