financial aid

by scott
(kansas)

I have an attorney threatening to sue me over 175 dollars cable bill from four and half years ago. He has been sending letters to my parents because he doesn't know where i live. I'm on disability and have not be able to work because i can't stand for more than five to ten minutes at a time( I have sleep apnea and diabetes with recurring infections).
I have been living off my disability and financial aid for the last four years. I'm worried this attorney will garnish my bank account, in the next month, where i keep my financial aid funds and disability checks. I need that money to buy school books, school supplies, and other living expenses. Under the law would they be allow to take funds from my bank account where my financial aid; student loans, grants,federal work study, and scholarship money will be deposited.

Comments for financial aid

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Jul 25, 2010

Garnishment of student aid money
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

Although the attorney is not legally entitled to collect on the past due debt you owe by taking your disability payments, my sources indicate that the attorney can take any financial aid money that may be sitting in your bank account.

Given that the amount that you owe to the cable company is so small, why do you not simply pay it (or borrow the money from your parents to pay it)? Paying the debt seems preferable to the hassle of being sued and then having to hire an attorney to defend you (or having to defend yourself if the lawsuit is filed in small claims court) and running the risk of the court awarding the attorney a court judgment against you. Should that happen, the attorney will almost certainly ask the court for permission to collect on the judgment by taking money from your bank account. Meanwhile, your credit history will be more damaged than it already is due to the past due debt that you owe because now it will include a court judgment. Having such negative information in your credit history is likely to affect your ability to get future credit (including student loans) and insurance and may impact your ability to get a good job and rent a place to live in the future.

If you want additional advice and if you believe that your debt collection rights are being violated in some way, I suggest you contact a consumer law attorney in your area who handles debt collection problems. Find out how to get FREE or low cost legal advice about debt collection from a consumer law attorney here.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

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