Official Student Loan Garnishment

[treehugger1]

Well, I got the official written word from my employer today that they will be garnishing 15% of my pay for the department of education. Who would have ever thought how thrilled I could be at this news?!

While the guarantor can add an additional 20% of collection costs to my loans, they have not chosen to do so. They have only added interest owed.

All the other creditors/CA's/Jdb's will now have to fight over the remaining 10%. I somehow don't think they will be getting in line more than once.

For those of you who have not followed my storyline, I have had to beg my guarantee agency to garnish my wages. I had to work very, very hard to convince them it was in their best interest.

I now have hope that my student loans might get paid off in the future!!!

[chg]

Lol, I have thought the same thing about bills, sure, garnish my wages, just leave me alone!

BK is in the future, just not ready yet, and the fun begins -

My state is 25% of disposable, so i guess they could all share it, it is less than i was paying in min payments anyway - ha

[Exployer1234]

I thought the same thing back about a year ago, until I found out the state I am in can take 25% each until I have nothing.

I thought well at least all my creditors can only take 25% all together, but I was wrong. Each creditor could take 25% each. So this April I went ahead and filed BK. I still have student loans to pay, but I am trying to stay in school so I want have to pay them right now.

If I could turn back time I would have completed my degree back in 96' when the interest rate was around 2% instead of being 7-8%.

[WhatMoney]

Each creditor could take 25% each.

Not legally. They may try, but you have the legal right to stop more than 25% total garnishment.
In Tennessee an employer can only allow up to 25% of your after tax earnings to be garnished.

Did you have multiple jobs/employers at once?

[Exployer1234]

I don't make a lot right now and just with one garnishment it was taking out 300 dollars of my income. That left me with very little money at the end of the month. I asked my lawyer about it before I filed BK and she said I would have to go through hoops just to get them to stop any garnishments or change the amount. By the time I could get this corrected I would not have food to eat for months. I just chose to get the BK over with so I could keep what little money I have each month. At least I can not eat.

[WhatMoney]

That doesn't change the fact that they can only take 25% of your aftertax income. If one collector is taking 25% the rest have to wait in line. Either your employer was violating the rules by honoring multiple garnishment orders that exceeded 25% total, or you were misinformed.

[chg]

Whatmoney - is it after tax and all other deductions, 401k, medical premiums etc?

25% of the cash amount on your check?

[WhatMoney]

Whatmoney - is it after tax and all other deductions, 401k, medical premiums etc?

25% of the cash amount on your check?

It's disposable earnings - after required deductions. 401K, medical, etc are not required. This should explain it in detail:

Basic Provisions/Requirements

http://www.dol.gov/compliance/guide/garnish.htm

[Exployer1234]

That is one reason I joined this forum. I was having trouble finding out information on anything. My employer did not know the laws and no one was answering her questions. She contacted the state office and got no help. So she just started honoring the garnishment without checking to see if I would have any month left at the end of the month.

I can say I am glad I found this forum. There is so much useful information

[chg]

Oof Whatmoney, I shall not let us be garnished, lol - we couldnt afford health insurance, about 1/4 of our income goes towards health insurance

[catleg]

Nice going TH. If you were interested in settling, this might make some of your creditors a little more motivated. But I'm sure you're not that interested in settling. Maybe you can increase your tax withholding and squeeze them a little more.

[jacko]

If you are single and head of household, the first $1004 in net income(after federal/state deductions) is exempt from garnishment. Some reset their withholding exemption to zero for max tax with holding and than file for the tax refund.

All your HR person had to do was google the info.

I don't make a lot right now and just with one garnishment it was taking out 300 dollars of my income. That left me with very little money at the end of the month. I asked my lawyer about it before I filed BK and she said I would have to go through hoops just to get them to stop any garnishments or change the amount. By the time I could get this corrected I would not have food to eat for months. I just chose to get the BK over with so I could keep what little money I have each month. At least I can not eat.

[StartingOver08]

Congratulations TreeHugger - you have been working on this a looonnnggg time. They finally see the error of their ways...

[frogger]

Good job! Glad it's working out like you planned.