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I have private student loans on which I am defaulting. I have no chance of getting a good job to pay them off in this lifetime. I am unemployed and if I get work I would be happy with 25K as steady income. However, I went to a foreign medical school and am unable to get a residency. I am a US citizen as well. Can my checking account be frozen? I have a joint account with my sister who is disabled and I have been taking care of her affairs for 25 years, since our mother's death. The house was left to her, but I put it in both our names to protect her and have a joint account to make paying bills easier. I expected to be the major bread winner, but now we live on mostly her SSD and other benefits. No one will hire me because I have three degrees, and an M.D. is of no value without a residency to become a licensed doctor. Can they freeze her accounts because I am on them? Should I just open accounts in her name only? Should I sell the house and at least have a few dollars after the mortgage is paid to pay rent?
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 Your questions are truly life altering. We won't be able to answer all of them, but here are some observations and recommendations.
As to the student loans, they often fall in a different class by themselves and have separate rules, but if a creditor sues you, yes, they can garnish or levy your bank accounts. This includes all accounts you own individually or with others. You should separate your accounts from your sister's. You can be convenience signers for each other, providing access without ownership.
If you sell your home, it is a buyer's market in most places. You may not get as much as you want. If you get more than you owe, you'll have cash, but you'll also have rental payments to make. Having a home that is eventually paid for is often more desirable.
You may look at other careers in the medical field that you can work in and excel in with your knowledge, or you may look for a school in which you can fast-track and get to the residency stage, so you can work as an MD. It would be a shame to allow that knowledge to go to waste if that is what you want to do for a living.
Your next step may be to contact an accredited consumer debt counseling service. They can help you manage your debt and avoid bankruptcy. The Consumer Credit Counseling Service is one that doesn't charge a fee to handle this and essentially take more than they give, so to speak.
Published on BankingQuestions.com 2/10/09
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