No.
Sounds like defaulted abbreviated by reporting creditor.
Yes. A creditor can sue for a debt and if they get a judgment they can use the judgment to garnish the debtor's wages.
Private business cannot garnish your wages. The federal government, state and local government agencies can. Basically, garnishment must be by court order. Thus, the creditor can opt to sue for payment.
Disability does not negate the responsibility to pay for a loan. A defaulted loan can damage your credit and yes, the creditor still expects the money. Sometimes an attorney or Consumer Credit Counselor can help smooth the way when dealing with a creditor.
A creditor can file a lawsuit against a debtor who has defaulted on a contract. But, all Social Security benefits are exempt under federal law from creditor garnishment. This does not mean that if the creditor sues and receives a judgment against the debtor they will not have other means of executing the judgment to recover the debt owed.
No. If a creditor other than the federal government tries to garnish your Social Security benefits, inform them that such an action violates Section 207 of the Social Security Act (42 U.S.C. 407).
Unfortunately, yes they can
Social Security, SSI, Veteran's benefits, and a few others are mostly exempt from creditor garnishments. The federal government CAN garnish these wages for taxes, spouse or child support payments.
Garnishment is a last resort of creditors and in most cases cannot happen overnight. The garnishment process has to be brought before a judge and he or she has to agree to its implementation. A creditor cannot garnish your wages without first giving you notice. The amount of lead time and the exact process vary from state to state. Talk with your creditor about other solutions remember for them wage garnishment is a last ditch recourse
Some U.S. states allow a judgment creditor to garnish private pensions. The best option for a person who is in a situation where garnishment is possible is to obtain the advice of a qualified attorney,
Bankruptcy. Defaulted federal student loans.
Yes. If the account is not paid as agreed in the original contract the creditor can sue the debtor, but they ususally try to avoid legal action.