Garnishment After Default on Private Student Loans
My question involves collection proceedings in the State of: Missouri
I have about $50,000 in federal student loans and more than $100,000 in private student loans.
I declared Chapter 7 bankruptcy this year, but no loans were discharged, as I expected.
I have a hardship forbearance on my federal loans.
However, soon my private loans will be in default and I cannot meet the terms of the creditors.
What can I expect to happen?
What percentage of my income can be garnished? Can only one creditor garnish at a time? Can checking accounts be garnished and how much? I earn about $25,000 a year, own a 14-year-old-car and no property.
Some of the private loans have co-signers who earn more than me. Will they likely be garnished as opposed to me becuase of my low income? They do not live in Missouri.
Thank you for any answers or best guesses!
Re: Federal and Private Loans; Private Defaults Likely; Request Info on Garnishments
Quote:
Quoting
djomo999
My question involves collection proceedings in the State of: Missouri
I have about $50,000 in federal student loans and more than $100,000 in private student loans.
I declared Chapter 7 bankruptcy this year, but no loans were discharged, as I expected.
I have a hardship forbearance on my federal loans.
However, soon my private loans will be in default and I cannot meet the terms of the creditors.
What can I expect to happen?
What percentage of my income can be garnished? Can only one creditor garnish at a time? Can checking accounts be garnished and how much? I earn about $25,000 a year, own a 14-year-old-car and no property.
Some of the private loans have co-signers who earn more than me. Will they likely be garnished as opposed to me becuase of my low income? They do not live in Missouri.
Thank you for any answers or best guesses!
I can tell you that the creditors will absolutely go after the cosigners if you default on the loans.
Re: Federal and Private Loans; Private Defaults Likely; Request Info on Garnishments
wage garnishment Missouri:
WAGE GARNISHMENT EXEMPTIONS: 90% of weekly net earnings if head of household; if single without dependents, 75%
Re: Federal and Private Loans; Private Defaults Likely; Request Info on Garnishments
Thanks for the answers.
Have a follow-up question:
If I become self-employed with my own limited liability corporation, can I then avoid the garnishments, or at least substationally lower then by paying myself a meager salary?