You have probably heard that you want to avoid defaulting on your student loans if at all possible. There are a variety of reasons, including the fact that the Department of Education has the ability to garnish your wages in order to collect the amounts owed to it.
An administrative garnishment can result in up to 15% of your “disposable pay” being taken out of your paycheck. The amount that is left remaining after the deductions required by law are withheld is your disposable income.
The government can proceed with an administrative garnishment without obtaining a court order authorizing it. However, the borrower must be given advance written notice of the proposed garnishment and an opportunity to object to it. Most objections dispute the amount of the debt or the repayment schedule. Additionally, if you want to request a hearing, you must typically do so within 30 days of receipt of the notice. If you do not request a hearing by the deadline, the garnishment may proceed, but it can also be stopped if you are successful when the hearing is held.
Examples of possible objections to a wage garnishment include:
- You have repaid the loan or do not owe the amount claimed
- You and your dependents will suffer financial hardship
- You are owed a refund from your school
- The loan documents were forged
- You are eligible for a closed school loan discharge
- You discharged the student loan in bankruptcy
- You are paying the student loan under an approved repayment plan
- The borrower has died or is permanently disabled
There are other possible defenses, so let us review your unique situation and help you understand what challenges you may be able to allege.
The “defender of the little guy,” DeLadurantey Law Office, LLC. handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.