Student Loan Garnishment Stop

Wage garnishment is a process that the Department of Education uses to collect on student loans. If you have defaulted on your federal student loan, the Department of Education can garnish your wages for repayment. However, there are options available to stop wage garnishment if it has already begun or prevent it from happening in the first place.

Student Loan Garnishment Stop

How does the Student Loan Garnishment Process Work?

A student loan garnishment is an order from the U.S Department of Education that requires your employer to withhold part of your paycheck to pay back a student loan. This can happen if you’re in default on a federal student loan and have been sent multiple notices about it.

It’s different from all others because unlike taxes and child support, which are protected by law, there is no protection for income that goes toward paying back your loans. With that said, this doesn’t mean they can take every dollar you earn or even more than they need to be repaid—only what they specify in the letter will be withheld from each pay period until they reach their goal amount (this number may change over time).

Identify Whether or Not Your Wages Are Being Garnished

Wage garnishment is a process that allows creditors to take money directly from the wages of an individual in order to pay off their debt. The most common form of wage garnishment comes from student loans and can result in serious consequences for not paying your debts.

If you are experiencing problems with your student loans, it’s important to first identify whether or not your wages are being garnished. If this is the case, consider contacting an attorney if you wish to stop or reduce the amount taken from your paycheck each month.

How Can You Stop Wage Garnishment?

Luckily, there are a few options that can help you avoid or temporarily stop wage garnishment.

• Talk to your creditors to see if they can help. Depending on the creditor, you may be able to negotiate a lower monthly payment amount or arrange for an automatic payment plan that will allow you to pay off your debt over time. This is especially true if they have been unable to collect on any of their other debts from you in the past.
• File for bankruptcy and have your debts discharged. For example, some types of student loans cannot be discharged in bankruptcy unless certain criteria are met (for example, if it was for education expenses only). However, making regular payments toward your student loans does not mean that it is impossible for these obligations not being discharged because this decision is made by an independent judge after reviewing all pertinent information during the Chapter 7 proceeding process; however keep in mind that filing bankruptcy has serious negative consequences so make sure before doing so!

Repayment Agreement with the Department of Education

If you have defaulted on your student loan, and the Department of Education is garnishing your wages, you can still negotiate a repayment plan and stop the garnishment. You will need to contact the Department of Education at (800) 688-7392 to request a repayment plan. Even if you are in default on your student loans, or have already defaulted, this option may be available for you.

Consolidation of Student Loans

If you have multiple student loans, you may consider consolidating them into a single loan. This is called consolidation. Consolidation allows you to combine all of your federal student loans into one new loan with a lower interest rate and/or extended repayment period.

Consolidation can be used to extend your repayment period, lower your monthly payment, or convert your variable-rate loans to fixed-rate loans.

Bankruptcy Discharge of Student Loans with Hardship Cases

If you are facing a student loan garnishment and are unable to repay your debt, you may be able to discharge the student loan in bankruptcy. The bankruptcy code allows for student loans to be discharged in cases of undue hardship.

The first step is to file a petition with the bankruptcy court explaining why your case should be considered for hardship discharge. The court will review your case, looking at factors such as:

• Your income and expenses;
• Your assets (such as property) and debts;
• Whether there are any other options available besides filing bankruptcy to resolve your situation; and
• How much money would be left over after paying off all of your creditors if you were granted the hardship discharge

If you are facing garnishment from the Department of Education, there are options to end it.

If you are facing garnishment from the Department of Education, there are options to end it.

Garnishment is a collection tool that can be very effective when used correctly. However, if you have defaulted on your student loans, garnishment may not be the best route for your situation. The Department of Education is required by law to take certain steps before they garnish your wages and/or bank accounts:

• They must send out three separate notices about the debt being owed over 30 days apart (the first notice being within 5 days).
• They must give at least 20 days for you to resolve any disputes with them before beginning wage garnishment proceedings.

If this has already been done and you still find yourself having trouble paying back your student loans, then consider speaking with an attorney who specializes in helping people get out of debt or work out repayment plans with their loan providers.

Closing

The garnishment process can be complicated and difficult to deal with. However, knowing what options are available to you can help put you in a better position to understand how to deal with your student loan debt. If you have questions about your debt, contact our attorneys today for a free consultation!