I have student loans that I defaulted on. Whose assets can they seize?

I am trying to work out a payment plan with the collection agency, but the minimum payment they are asking for is higher than our rent and it just isn't possible. I have been a stay at home Mom and caregiver to another. I thought they were in deferment, I would have never just not paid. Anyway, because I won't make the payments they want, they told me they will send an asset ???person to seize my assets. Now, I have nothing, really, not even a car, but my Mother has money in joint accounts with my name on it. Should we worry? Also, my husband is trying to buy a house, will it effect that at all? Would it be smart for us to get separated? And lastly, I have heard that people can go to jail over this...is it true? I am actively looking for a job, but even so, I don't think I'll be able to make enough to make the payment. I am so scared...what is going to happen???
Answer:   They will take your income tax refund every year. You can never get another check from the government. They can even take away your Social security when you are old. When you are working, they can garnish 15% of your wages forever. You will never get a credit card, a mortgage or a car loan.

Your joint account with your Mom--your asset--its gone.
Your husband is liable for your debts. Separation wont do it. His assets are in the game.

They can't put you in jail. Yet. But with the Bozo's you have in Washington--they love the money for the corporations. The corporations contribute to their campaigns. You don't...

You better fix this. Or you'll have to do what I did. (see below)

Check out the websites below. The first one tells you why this happened. The second one would be a better place to post your question. It's all about people in exactly your situation.

I know all this because it happened to me. I moved out of the country and live someplace else now with a brand new financial life.

Good luck.
Sounds like someone needs to get a job with that degree.
Get your mom's money back in her name alone and get her to give you Power of Attorney. If the account is in both names, the law sees it as being yours since the account is "joint and several".

They can't touch anything that is not yours. They're not interested in chattel just assets that can be easily converted to cash.

Your credit history will have no impact on your husband's ability to get financing. Just don't apply with him.

Don't worry about going to jail. It can't happen. No crime has been committed. If being a little tight on cash were a crime, we'd all be in the pokey.
It might be to late for your mother to pull her name off but they will go after your account. Now they have told you this she may not be able to. Yes, it will affect your husband buying anything and separating won't do it you would have to divorce and only then it's possible the debt would be yours sole but I doubt it. You won't go to jail but you will be really really broke and this debt right now will be your husbands also.
If you can afford to buy a house, you can pay this bill. Better tell mom to make that account in her name only, or they can take all the cash there also. You do not say where you live, they cannot just come and take from you, they need to go to court and get a order from a judge. You have to be notified of the hearing and I bet if you go and show proof that you can make smaller payments the judge will order that to happen. Don't let them bully you. In fact, if you are in the USA, tell them they are using harrassment tactics and you are going to sue them.
yes they will try to get it from your husband, since you are married you are considered "joint" and even though you might have had those school loans long before you met your husband they will take assets (like a house) or so. But usually they won't come take your things it's a scare tactic really. My mom had school loans from the 70's and now that us kids are adults and out of the house she got a job and they just garnish 10% of her paychecks to pay back the loan. But if you and your husband file taxes jointly the might garnish your tax returns. That is why i wouldn't legally marry my boyfriend, because he has 30K$ in school loans still owed from the 80's. And i know that as soon as we file taxes together they will withhold the tax return. But if your mom wasn't a "joint" or co-signer on your school loans she wouldn't be responsible for paying back, but if you have a bank account that is in your name too they might try to make you pay back through that but that is most likely not going to happen.

This is all depending on what state you are in of course. But you know collection agencies are really just a bunch of scare tactics. I wouldn't worry too much about it right now, but when you do get a job expect that they will garnish you wages about 10% or so to help pay back your school loans.

good luck.
Hi there, i'm making student loan payments right now and mine are only about $120 a month for a private college I went too. You should take the money that you want on your house and get caught up on your payments, and put off getting the house for now, then when you are caught up, they will quit threatening you, and you can get back on track with looking at homes. I know this is the american dream as i'm hoping to start looking in a few years. Call them up, let them know your situation, and that you are a stay at home mom. If they are still meanies, then they will probably deduct money from your mom's account as she is a co-signer on the account, so I would let your mom know. If they do that, maybe you can pay your mom back with the smaller amounts. Good luck!!!
If I were you I would take my name off of the bank accounts and if ever asked simply say it wasnt your money and you didnt want them to take your mothers money. They can not take what you dont have -put your car in your husbands name. As long as you send a payment every month even if they send it back you will not go to jail. As you can say you did eveything possible for you to pay it off but they refused your payments.
when and if you get a job, they will keep your tax return every year till your loan is paid off, no matter how much you get back. it happened to a friend of mine, she was getting 3000.00 back for taxes and was gonna buy a car NO...........the government kept it,and did for a few more years after. they will always get their money back.
they did not seize my assets, but 20 years later they did find me and ask that i start paying or they would garnish my wages. loan can only be deferment for a short time. has the account been sent to SallieMae yet?? for collections. As a stay home mom surely you could come up with something to send them every month, you must put something aside for them every month no matter how small the amount. this is a govt loan and you will have to pay sooner or later..
Yours and your co-signer or guarantor.
Beside you yourself, the guarantor will be affected. The banks can't seize anythings that not belong to you. Which meant your husband buying a house have no effect on your loan. Try to transfer the join account to your mom alone.

You will not go to jail for any outstanding loan. The worse is the banks will take up Bankruptcy petition against you.

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