Anyone have garnishment for student loans?

[Wantmypeace]

My attorney says that garnishment for student loans doesn't count as part of the max 25% of income garnishment and only one creditor at a time rule. Has anyone had experience with studetn loan garnishments? I'm wondering if the student loan company garnishes my wages and then a cc gets a judgment, how am I going to survive on 50% of my income. I can't file 7 because we don't pass the means test, and I can't file 13 because our unsecured debt (mostly student loans) is too high. I may have to file a ch 11. GAWD that would suck!

[BigJohn]

What numbers are we talking about for unsecured debt? breakdown?

[lrprn]

My attorney says that garnishment for student loans doesn't count as part of the max 25% of income garnishment and only one creditor at a time rule. Has anyone had experience with studetn loan garnishments?

Allowed garnishment amounts and garnishment circumstances are set by your state. What state do you live in?

I can't file 7 because we don't pass the means test...

It's possible to be over the median income for your state and in certain circumstances still be able to file Ch 7. Have you had free initial consultations with 3-4 experienced bk lawyers yet to get knowledgeable legal opinions about what's possible and what's not possible to do in your case?

This is *not* the time to assume, take the advice of well-meaning friends, or frankly, depend solely on what you may be told on a well-meaning but anonymous forum of non-bk lawyers on the internet.

...and I can't file 13 because our unsecured debt (mostly student loans) is too high.

So you and your spouse together have more than $336,900 in unsecured debt?

[lrprn]

Wantmypeace, I deleted your duplicate thread in Student Loans. It's against our forum rules to cross-post duplicate questions to different forum areas.

We've found over the years that you'll get better and more responses this way when responses to the identical question aren't scattered between two or more forum areas. Also most of our knowledgeable posters cruise all the forums, not just one, so you question will get noticed no matter where it's posted. Thanks!

[Wantmypeace]

lrprn, okay, sorry about that...I didn't know. I won't x-post anymore.

As far as the details, I'm in CA, and my SL debt is 272K, and my cc debt is 71K. We've had one consultation with a bk lawyer, and we have another one for this Tuesday. I've done the means test online multiple ways, and the only way we qualify (we both have good jobs and gross about 12K/mo) is if we include the student loan payments. Unfortunately, according to the lawyer we saw last week, the courts in our jurisdiction have made it very clear that student loans are sacred cows. Basically, they cause us to have too much debt for a 13, but without counting their payments, we are out of for a 7, also. An 11 is an option, but VERY expensive and complicated. His suggestion was to lower our income for 6 months to pass the means test, but we are both educators and unable to take a leave of absence. The other option is to find a way to pay down some of the debt to get under the max for a 13. We're thinking about going that direction, but we want to see what the next attorney has to say, as well...

The last one charged us 300.00 to run the numbers with all of our paperwork and basically told us what I already knew.

[treehugger1]

I don't know about CA, but here in Oregon, if the department of education garnishes yoru wages for 15%, this only leaves 10% for other creditors. I would find it hard to believe that this is all that much different state-to-state. You shoudl also be somewhat careful related to BK attorneys. THey are in the business to make money.

[Wantmypeace]

Yes, I am very wary of attorneys, but I'm not so confident that I could do a ch13 on my own. It seems very complicated...