Results 1 to 6 of 6
  1. #1
    Join Date
    Nov 2008
    Posts
    15

    Default Can You Stop a Student Loan Wage Garnishment That Has Been Ordered

    My question involves collection proceedings in the State of: Ohio.

    After being found in default of my student loans, I began paying the loan back. After about a year, they (DOJ)switched to e-pay. I lost track of the site to make payments, and stopped paying. I never received a notice to make a payment after that. I sent several emails to DOJ to try to find out where to send payments to, with no response.

    After receiving notice that they were going to garnish my wages, I contacted the DOJ in Columbus. I was told my options were to do nothing, and they would take 25% of my salary. The other option was to fill out a financial statement, and that we could try to work out an agreeable amount to be garnished.

    Two questions for you. Is there any way to stop the garnishment from beginning, and just continue to make payments? Also, in the financial statement, it asks for our gross earnings, but that doesn't account for insurance, Aflac, union dues, retirement, or anything else that is coming out of our checks. Which means our take home is way less than what we gross. Is that right/fair (not that the government cares about fair).

    I saw a term in another thread. What is a slow pay motion, and is it an option in this case?

    Ultimately, I'm trying to keep from having a garnishment on my credit history. I do not have an attorney, nor have I consulted with one. Do I need to? What options do I have, other than letting them garnish my wages?
    Is there a statue of limitations on student loans? Federal student loans?

  2. #2
    Join Date
    Aug 2013
    Posts
    169

    Default Re: Can I Contest/Stop a Wage Garnishment That Has Been Ordered

    How many loans? I thought that there was a 10% limit for a single loan. Past that, my understanding is that there is no statue of limitations. That Obama waived a bunch of loans, but Trump un-waived them. that is all I know.

    https://www.dol.gov/whd/regs/compliance/whdfs30.pdf

    "The Higher Education Act authorizes the Department of Education's guaranty agencies to garnish up to 10% of
    disposable earnings to repay defaulted federal student loans. Such withholding is also subject to the provisions
    3 f Title III of the CCPA, but not state garnishment laws. "

  3. #3
    Join Date
    Oct 2014
    Posts
    6,716

    Default Re: Can I Contest/Stop a Wage Garnishment That Has Been Ordered

    Quote Quoting DAWW
    View Post
    How many loans? I thought that there was a 10% limit for a single loan.
    That information from the U.S. Dpartment of Labor is seriously outdated with respect to the student loan limits, unfortunately. In the Defict Reduction Act of 2005, P.L. 109-171, 8024 amended the student loan administrative wage garnishment provision of the Higher Education Act to raise the amount that may be garnished to 15% of the disposable pay. See 20 U.S.C. 1095a(a)(1). Before that change it had indeed been 10%. Also note that this limit is for administrative garnishment by the Education Department or its guarantors. Administrative garnishment means that the agency may impose the wage garnishment without first going to court to get a judgment on the debt. That is similar to how the IRS may attach wages for federal taxes owed without first going to court. But if the federal government does go to court and get a judgment on the student loan debt then the government may use the judgment to garnish the wages, and that in turn means that the limit of 25% of disposable earnings that applies generally to judgment creditors is the rule that would apply to that judgment.

    Since it is the DOJ collecting this and not the Education Department it is almost certainly the case that there is now a judgment for the debt. If that is the case, that changes how things work. Once there is a judgment, there is no provision other than bankruptcy that the judgment debtor can use to force the DOJ to stop the garnishment. You just have to try to work out something with DOJ that you can live with.

    Bankruptcy would stop the garnishment temporarily, but for student loans bankruptcy is often not a good solution. The reason is that student loans are not dischargeable in bankruptcy unless the debtor can prove to the court in an adversary hearing that he or she faces an undue hardship. That's pretty tough to do. However, under the right circumstances it can done and if you think you'd like to explore if that might work for you then you ought to see a bankruptcy attorney who has experience with student loan debts.

  4. #4
    Join Date
    Aug 2013
    Posts
    169

    Default Re: Can I Contest/Stop a Wage Garnishment That Has Been Ordered

    Good to know.

  5. #5
    Join Date
    Nov 2008
    Posts
    15

    Default Re: Can I Contest/Stop a Wage Garnishment That Has Been Ordered

    Any idea of a slow pay motion?

  6. #6
    Join Date
    Oct 2014
    Posts
    6,716

    Default Re: Can I Contest/Stop a Wage Garnishment That Has Been Ordered

    Quote Quoting imclean
    View Post
    Any idea of a slow pay motion?
    A "slow pay" motion is a process in some states that allows you get the wage garnishment set aside and have the court instead order a payment plan for payments less than the garnishment would have taken. But only some states offer that option and unfortunately for you even if your state offered it, it would apply only to state judgments. Federal judgments in favor the federal government are not subject to those sorts of state law procedures. You might accomplish much the same thing in a Chapter 13 bankruptcy, but you'd need to see a bankruptcy lawyer to determine if that is a viable option for you.

    1. Sponsored Links
       

Similar Threads

  1. Student Loans: Wage Garnishment for a Student Loan Default
    By straightshooter22 in forum Debts and Collections
    Replies: 4
    Last Post: 02-04-2015, 11:07 AM
  2. Student Loans: Student Loan Wage Garnishment
    By KMS in forum Debts and Collections
    Replies: 1
    Last Post: 10-18-2010, 10:27 PM
  3. Student Loans: Co-Signer Student Loan Wage Garnishment
    By Cosigner in forum Debts and Collections
    Replies: 3
    Last Post: 04-16-2010, 10:59 AM
  4. Student Loans: Federal Student Loan Wage Garnishment
    By Everettswife in forum Debts and Collections
    Replies: 13
    Last Post: 11-25-2007, 08:13 PM
  5. Student Loans: Wage Garnishment Over an Old Student Loan
    By rxwoman in forum Debts and Collections
    Replies: 1
    Last Post: 11-25-2007, 07:16 PM
 
 
Sponsored Links

Legal Help, Information and Resources