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  1. #1
    Join Date
    Nov 2010
    Posts
    2

    Default 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!

  2. #2
    Join Date
    Oct 2006
    Posts
    16,080

    Default Re: Federal and Private Loans; Private Defaults Likely; Request Info on Garnishments

    Quote Quoting djomo999
    View Post
    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.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default 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%

  4. #4
    Join Date
    Nov 2010
    Posts
    2

    Default 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?

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