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Claim of Exemption or Chapter 7 Bankruptcy

by Mo
(Altamonte Springs, FL, Seminole County)

I have a judgement against me from 2016. At the time, I was unemployed. I just got a job 3 weeks ago and attending school. They served my bank with a writ of garnishment but all the funds in there are from my federal student loan disbursement. My bank froze my account. I filed a claim of exemption stating they are federal student loans, creditor denied exemption, and now waiting on a hearing. I contacted a bankruptcy lawyer because I have other unsecured debt and I cannot afford to pay back. I just want to have a fresh start but he informed me that I need to file a claim of exemption for head of household and then we would file a petition for bankruptcy before the hearing and this would be an automatic stay and unfreeze my account causing creditor to cease from collecting my funds. I'm a little confused because these funds are not from income, only from student loans. They have not filed a motion for garnishment on my wages. Lawyer states that Florida law overrules Federal and that federal student loans are not exempt from garnishment in Florida as this is not one of the exemptions listed on the form in Seminole County, FL. Looking for where it states that federal student loans are exempt from garnishment so I can bring this to hearing along with proof of direct deposit funds for this loan coming directly from the institution. If they are not exempt, I will try to file a petition for Chapter 7 bankruptcy as quickly as possible. Given my circumstances, I have been advised I would be eligible to file for Chapter 7 bankruptcy.

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