can student financial aid be garnished?

[lmb]

I'm living on Pell grants and student loans. This is my only income. I've looked at what cannot be garnished in my state, Arizona. I only see things like welfare, social security, and disability listed as not garnishable.

I want to file bankruptcy, but I cannot afford it for a little bit. I've already been served with a lawsuit from one of my credit card companies.

Does it seem right that the court would allow student grants and loan proceeds to be garnished to pay credit cards?

[HHM]

There is no specific exemption that I know of for student loans or benefits. Once the "cash" hits your bank accounts, it is just that, cash. Thus, conceivably, if a creditor gets a judgment against you, the could levy your bank account and get whatever money is in there.

[sisterfunkhaus]

Take the money out of the bank and it can't be garnished. They aren't going to garnish loans and aid directly. That is to be used for school and expenses. If it's in the bank, they can take it though.