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  1. #1
    Join Date
    Aug 2011
    Posts
    2

    Default Is Consolidation of Loans in Garnishment Possible

    My question involves collection proceedings in the State of: AZ
    I have a garnishment that started this last month. I have multipule loans stretching out to the sum of around $85,000 from two schools and two or more lenders. One is for $45,000 and they just sent me the final notice for treasury offset. I need to know if the Fed consolidation is still applicable and what are options to avoid losing 25 - 45% of my monthly income. My budget is stretched as far as it will go. I can do modest ($200) monthly payments for now.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Is Consolidation of Loans in Garnishment Possible

    The treasury offset is for your tax refund? This is garnishment through an Arizona court? Only one court? In Arizona, garnishment should be limited to 25% and can potentially be reduced following your petition to the court. If you are being garnished by multiple courts you need to be sure that the courts are aware of any prior garnishment orders such that they respect the limit.

    There's no real way to "consolidate" judgment debts, but if all are owed to the same plaintiff you can propose some form of settlement or payment plan that does not go through the court.

  3. #3
    Join Date
    Aug 2011
    Posts
    2

    Default Re: Is Consolidation of Loans in Garnishment Possible

    Actually the information I have just recieved from research since my post has shown that the garnishment dose not have to go through court, so ther is no court order, based on the contract signed with financial aid when I enrolled.

    Acording to what I have forund and what is stated on the notice I will not have an amount greater than %15 deducted per pay period. The curent amount is for 17.25%. From your reply I understand that combined there can not be more than 25% regardless of how many defferent deductions are taken from my pay check.

    Am I understanding this correctly?

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