Student Loan Garnishment - Finally

[treehugger1]

After many months, the agency that holds my guaranteed student loans finally sent me the 30 day notice of wage garnishment. As near as I can tell, the time from first past due mark to this notice was approximately 400 days.

This is important to me because it puts my student loans back into repayment; albeit a bizzare method. The garnishment order will be 15%. This now leaves 10% for other judgment creditors.

In the meantime, I'll live through my 25% garnishments and continue to contribute as much as possible to my optional retirement accounts. This still remains a far better deal than the 60% of salary payable to a BK 13 trustee for five years, my student loans going on hold for five years collecting interest, and no additional sums paid to optional retirement accounts (I also have a pension.) Everyone must make their own decisions related to bankruptcy, collections, and future personal financial goals.

With the student loans now getting 15% in a permanent garnishment, I will now make this very clear to CA's, OC's, JDB's, and collection attorneys. They can sue away to their heart's content. I don't care. 7 - 8 years from now, I should qualify for a BK 7. Unless, they change the rules.

Cheers.

[GoingDown]

I have to say, this is a rather clever solution for your unique situation.

[frogger]

With the student loans now getting 15% in a permanent garnishment, I will now make this very clear to CA's, OC's, JDB's, and collection attorneys. They can sue away to their heart's content. I don't care. 7 - 8 years from now, I should qualify for a BK 7. Unless, they change the rules.

Cheers.

7-8 years from now, the sol will make them sol anyways. So perhaps you won't have to file.

[jacko]

Since, you are head of household is the first $1004 net in your monthly income exempt from garnishment?

After many months, the agency that holds my guaranteed student loans finally sent me the 30 day notice of wage garnishment. As near as I can tell, the time from first past due mark to this notice was approximately 400 days.

This is important to me because it puts my student loans back into repayment; albeit a bizzare method. The garnishment order will be 15%. This now leaves 10% for other judgment creditors.

In the meantime, I'll live through my 25% garnishments and continue to contribute as much as possible to my optional retirement accounts. This still remains a far better deal than the 60% of salary payable to a BK 13 trustee for five years, my student loans going on hold for five years collecting interest, and no additional sums paid to optional retirement accounts (I also have a pension.) Everyone must make their own decisions related to bankruptcy, collections, and future personal financial goals.

With the student loans now getting 15% in a permanent garnishment, I will now make this very clear to CA's, OC's, JDB's, and collection attorneys. They can sue away to their heart's content. I don't care. 7 - 8 years from now, I should qualify for a BK 7. Unless, they change the rules.

Cheers.

[treehugger1]

Head of household is not relevant in my state. The point is that I am unusual in that I have a great deal of income and have no non-exempt assets. 25% wage garnishment does not present a "hardship" for me. Since I am not eligible for a BK 7, and I would be in a 100% payback plan, none of my unsecured debt (credit cards, unsecured notes, etc) would be discharged. 25% garnishment is a gift compared to what I would pay out for five years of a BK 13. In fact, under a 13, my unsecured creditors would not have to do anything except get in line in front of the trustee. With the garnishment approach, they have to work really, really hard to try to get all the alleged money they say I owe them. With only 10% now available to garnish (after the automatic 15% SL garnishment) judgment creditors will have to get in line many times to be paid using Oregon's 90-day garnishment writs.

I am not the common debtor on this forum. But, my approach is not uncommon among debtors who can't pay all their bills.

[Worried Mom]

Congratulations! I've been wondering what was going on with your student loan. The 15% garnishment sounds like the perfect solution for you.