What can be garnished? I am on assistance and I am a full-time student

[amb123]

I have a medical bill that is a few years old in the collections process and was contacted by someone recently that told me that if I couldnt make a payment they were looking into garnishment. A few of my friend's have had their checking/savings accounts drained because of medical bill collections so I am nervous of this as well. I have no income. I am on assistance and I am a full-time student getting student loans. Most of that money goes directly to my school but some gets deposited into my bank account for living expenses. My question is, can the people trying to collect on my medical bill take the money from my student loans or not?

Thank you.

[AFFA]

I wish to inform you that your bank account may be garnished. In this regard the money from any source in the bank account will be under garnishment procedure. If you are having student loan then that loan amount may be deposited directly with school fees account. Further for your personal expenses you may keep money in cash form so that bank freeze does not affect it. Further your state laws will determine garnishment procedure and your rights.

AFF

[goddessoflubboc]

They have to get a judgement first, meaning they have to take you to court. Has that happened? Have you put any money in the account other than your school money? Does any of it come from private loans?

[amb123]

As far as I know I have not received any court papers only collection notices from various debt collection companies. I only received a grant (which goes to the school first), a subsidized loan (which goes in next), and finally an unsubsidized loan (which goes in last, and what ever is left over from that I get sent- usually every two-three months). The only other deposits not more than $100 that have been made to the account are from out-of-state relatives on birthdays, Christmas, etc... Whenever any money is in the account I always take it out right away just to be on the safe side.

I did not think the money from government loans could be touched but I guess I was wrong.

Thank you to all that have responded.

[sandyclaus]

Originally Posted by amb123 As far as I know I have not received any court papers only collection notices from various debt collection companies. I only received a grant (which goes to the school first), a subsidized loan (which goes in next), and finally an unsubsidized loan (which goes in last, and what ever is left over from that I get sent- usually every two-three months). The only other deposits not more than $100 that have been made to the account are from out-of-state relatives on birthdays, Christmas, etc... Whenever any money is in the account I always take it out right away just to be on the safe side. I did not think the money from government loans could be touched but I guess I was wrong. Thank you to all that have responded.

In what state do you reside? The collection and garnishment laws vary by state as to the amounts allowed to be garnished. There are even some states where bank accounts actually can't be touched unless it's for child support.

[amb123]

sandyclaus:

I am in North Dakota.

[sandyclaus]

Originally Posted by amb123 sandyclaus: I am in North Dakota.

North Dakota has a $7,500 exemption on bank accounts (the first $7,500 can't be touched).

And with the exception of some government benefits (such as SSI/SSDI, VA Disability benefits, or government pensions), the rest of the income you receive is fair game for collections.