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CalAttorney2
CalAttorney2, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 10238
Experience:  I am a civil litigation attorney representing individuals and businesses.
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I am collecting a retirement check from the state of New

Customer Question

I am collecting a retirement check from the state of New Jersey. I am being sued as co signer of a student loan that is in default. Can they touch my bank accounts?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  CalAttorney2 replied 1 year ago.

Unfortunately, in New Jersey, private retirement funds are not exempt from collections/garnishment (see generally: http://www.debtsettlementlawyers.com/resources/debt-settlement/debt-collection/new-jersey-wage-garnishment.htm - this is not the case in other states, but unfortunately it is true in NJ).

This means that your creditor can reach those assets.

THey can only reach these assets once they actually get a judgment against you. This means it is going to be important to file an answer to the complaint and to defend the action. https://www.judiciary.state.nj.us/prose/10554_ans_cmplt.pdf

Expert:  CalAttorney2 replied 1 year ago.

Depending on your total financial portfolio, it may be worth speaking with a bankruptcy attorney (even if you don't think that you need to file bankruptcy now, it may be worth talking to a lawyer to discuss options as good pre-bankruptcy planning is the best way to help you maximize the benefit that you will receive from potentially filing for bankruptcy protection. While it is possible to file for bankruptcy without a lawyer (see: http://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney) I do not recommend it as it is very easy to overlook something critical, and you will get much more out of your bankruptcy by working with an attorney than trying to do it yourself (most bankruptcy attorneys don't charge very much for the value that you get - it is a good investment).

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