Debt Collecting

by Jassica
(Royal Oak, Michigan, United States)

Will debt collectors, especially credit card collectors, garnish or take your student loan refund check if you are a student? They refund check doesn't go to your bank but goes to your house.

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Jan 24, 2012
Debt Collecting

Before a debt collector can take money from your bank account (levy) the collector must sue you first and win the lawsuit. Then the collector can ask the court for permission to levy against your bank account, garnish your wages, or put a lien on an asset you may own. So, any checks you may deposit in your bank account, including a student loan refund check, would be at risk once the collector has permission to levy. If you cash the refund check without depositing it once the collector has permission to levy, then the money won't be in your account so it can't be taken.

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