Will Bankruptcy Chapter 7 stop garnishing of my Social Security Disability Check? My house was foreclosed and sold for $50,000. I t was valued at $94,000. Now the department of treasury garnishes my check. The house came of of my credit in January 2012.
2 Answers from Attorneys
You probably had some kind of government-backed loan. The answer (probably) is NO, bankruptcy would not discharge the debt.
The actual answer is probably yes, it is dischargeable. Just because it is government backed does not mean it is not dischargeable. There are a few exceptions but this does not sound like one.
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