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Question:

bad creditwill salliemae or bank cards take my money out bank?

Ihavent opened a bank account lately but thinking about it bc I saved a lot. My question is I've owed salliemae for unpaid school loans ( went to medical assisting school few yrs back). Plus I have a few credit cards I stopped paying for about a yr ago. Can they take money out of my bank account for these unpaid loans? what the safest bank? help me pls . Thx *Jen*

Answer:

These collection agencies will soon sue you. They can garnish your wages or go after your assets (bank accounts). Statue of limitations on credit card debt is 7 years (in most states). With student loans, they can come after you for a lifetime.
AGAIN okorder
No creditor has direct power to freeze your bank account and take money out. They'd have to take you to court and win a judgement first. However: For any student loan that's in default, they have direct power to garnish your wages at up to 15% and they can do this without a court order. - For student loans in default, they also have direct power to confiscate both your federal and state tax refunds. - For credit card defaults, neither of the above applies. They'd have to take you to court to garish wages and they cannot touch your tax refunds for credit card debts. They can only freeze your bank accounts if they take you to court and win a judgement. - Student loans will always have to be paid back and you cannot discharge them in bankruptcy. There really is no other solution but to pay them back. If these loans stay in default, the amount you owe will keep going up and can jump to 2 to 3 times of the actual amount that you borrowed.
If they have a legal judgment against you with an attachment to that bank account, of course they can take the money. There is no such thing as a safe bank that will protect you from federal laws.
Catdad has it mostly right. Depending on where the funding came from, student loans can be discharged in bankruptcy, if they are NOT federally funded. Salliemae does loans with both federally privately funded money. As a kicker, if someone dies with a Salliemae loan, the federally funded loans are cleared but the private loans are due from the estate

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