What options do I have if my wages are being garnished because of a student loan default? 11 Answers as of January 20, 2011

I have a student loan in default and was contacted by debt collection today after giving my information they said I needed to make monthly payments of 350.00 I make 1000 a month and after living expenses and car payment I said the realistic payment would be 50.00 a month they said that was unacceptable. I was then instructed that my only option was to authorize this payment of 350.00 dollars by the end of the day or they would take legal action and would garnish my wages for that amount or up to 700.00 what are my options.

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Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Garnishment in the U.S. is limited as follows: 15 U.S.C. 1673. Restriction on garnishment (a) *Maximum allowable garnishment * Except as provided in subsection (b) of this section and in section 1675
Answer Applies to: California
Replied: 1/18/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Bankruptcy will not discharge a student debt. Under applicable federal law, you wages can only be garnished up to 20% total of your take home pay.
Answer Applies to: South Dakota
Replied: 1/18/2011
The Law Offices of Robert L. Driessen
The Law Offices of Robert L. Driessen | Robert L. Driessen
They can not garnish $700 a month if you only make $1,000. Many collection companies will inform you of unrealistic payment options. It would be best for you to speak to a supervisor to get a reasonable monthly payment.
Answer Applies to: California
Replied: 1/17/2011
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
You should consult with an attorney as you may have some options, but without more specific details about your situation I can't tell what your options are.
Answer Applies to: New Hampshire
Replied: 1/17/2011
Law Office of Aaron Nielson
Law Office of Aaron Nielson | Aaron Nielson
Most states have a limit on how much can be garnished. $350 on a $1000 is probably over most limits but is something a local attorney needs to talk to you about.

Bankruptcy good be an option depending on what your facts are.
Answer Applies to: Washington
Replied: 1/17/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Your wages can not be garnisheed until the creditor sues you and obtains a judgment against you. It sounds like you have not even been sued yet. You do not say what the full amount of the student loan debt is. I suggest that you consult with an experienced bankruptcy attorney ASAP to discuss this matter.
    Answer Applies to: California
    Replied: 1/17/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Check out the information located at http://www.studentloanborrowerassistance.org/

    If that doesn't help, you may want to consider seeking an undue hardship discharge in bankruptcy. They are rarely granted, and you haven't provided any details regarding your financial situation and other relevant facts, but it may be something worth looking into.
    Answer Applies to: California
    Replied: 1/17/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    File Chapter 13 and pay your student loans (interest free) in the plan.
    Answer Applies to: California
    Replied: 1/17/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If your wages are garnished you can go to court and tell the judge your expenses and ask for an exemption and reduction in the amount to be garnished. The maximum that can be taken out by garnishment is usually 25% of your net wages after mandatory deductions. You need to wait until the garnishment is served on your employer and you receive papers that will explain your option to ask for a reduction of the amount to be garnished.
    Answer Applies to: California
    Replied: 1/17/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You have other options, go see a lawyer.
    Answer Applies to: California
    Replied: 1/17/2011
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