I'm currently paying back my sister's student loan, I receive ssi so I really don't have much money,?

Question

I was trying to help my sister by co-signing on a loan for her. I never imagined that she wouldn't pay it back and leave me with the bill. I receive SSI so I don't have much money to work with so I'm having a hard time paying back the loan. I've been paying the bill since august of last year. She has a job and has not offered to help me pay it. I got a call last night saying that they will take both of us to court and take our wages. I mention this to her and now she is talking about quiting her job so that she won't have to pay anything. And I know that when she does quit her job the company will be on me onto me to pay it. Is there any way that I can fix this problem?

Answer 1

Sounds like shes very spiteful towards you. You'll probably have to change strategy when you confront her if you wanna end this feud.

Answer 2

I agree with the other person's advice about SSI being exempt from garnishment.  Make sure the only deposits that go into your bank account are your SSI checks.  

Send the lender a certified letter informing them that your bank account contains only SSI funds and that they will be violating the law if they attempt to garnish those funds.  Also notify your bank, so that it will reject any attempt to do so.

The company might try to take you to court, but it is possible that a judge would not give them a judgement against you because of your inability to repay it without harm to yourself.  I would definitely seek the advice of a disability rights attorney, or a legal aid attorney.

Good luck

Answer 3

See a lawyer.  Your SSI may be exempt from garnishment (however not helping to pay back may ruin your credit).  Remind your sister that if the loan isn't paid, it will ruin her credit also and if she quits her job, they will just come after her on her next job.  unluckily, you have experienced firsthand why financial experts recommend never co-signing a loan or other credit account.