Hello,
I am appearing in court Tuesday for the second time now due to a judgement which resulted in the freezing of my bank account. The account contained my student loans. AT first thought I knew it was a wrongful seizure, and after some researching I was right. I had intermingled my tax return with the student loans. But the good thing is I withdrew, on the day of transfer of student loans, all of my tax return money.
I did pretty well at the first hearing. I collected at least 20 documents, summaries, statements, as well as documents proving that my student loans were applied for, disbursed and wire transferred to bank account. I also provided cashier check reciepts, and withdrawal receipts reflecting the date that I withdrew all of my tax return money. Which consequently was 2 hours before the wire transfer of student loan was finalized and recognized on my account. Of course the lawyer for the collection agency denied that student loans are not exempt from garnishment. I was prepared for that as well, and brought a document from indanalawyers.com recognizing a case where student loans were recognized as exempt as well as student loans being deposited into a personal account were also, still exempt. The judge was quite surprised as was the lawyer, that I had went to such lengths. The judge then ordered that we meet again Tuesday so the lawyer has time to review my documents.
I have since collected more documents with the cited references that I will present proving that student loans are, in fact, exempt. I just need to know what her (the lawyers) next step will be. I want to be prepared for her next loophole.Also I have looked for laws pertaining to this sort of thing, but my state, Indiana, does not seem to have many laws in this area. I know that some states have laws stating that the balance must be more than 1740. To be garnished, and deposits made within the last 60 days are exempt. I just cannot find anything stating that this is true for Indiana as well. I am wondering if something along these lines could be federal law?
This is not even a large amount of money, but I am just furious that they would do this, when they had not even made an attempt to contact me for payment arrangements regarding this 9 year old debt that I had not even remembered. I believe the amount itself was raised substantially due to the fact of cancellation of a cell company I was unhappy with. Then being transferred from collection agency to collection agency.