FL Bankruptcy Services on Garnishments and Lawsuits
Friday, October 23rd, 2009 Subscribe To Our Feed
Garnishment of Federal Benefits
Social Security retirement and Social Security disability benefits may also be garnished for loan arrearages repayment. Supplemental Security Income is not affected. The first $9000 or $750 per month may be taken but the total amount may not be over 15% of your income. If your Federal benefits are not over $750, then no money can be garnished. Wage garnishment can be stopped, however, if filing for bankruptcy with an automatic stay. Contact FL bankruptcy services for further information.
Lawsuits
The Department of Education can file suit against you for defaulting on your student loans. Unlike some other debts, there is no time limit on this and they can sue you indefinitely. However, the Department is not likely to sue if they deem you have no assets that total the value of the loan or if suing you would cost them more than they would collect.
If any of the above actions have been taken against you and you feel this is in error, you do have recourse. Advise the guaranty agency in writing and with evidence within 65 days of the date of the notice that:
• You have paid the arrears in full
• You are making payments under an arrangement or you have been granted a forbearance, a delay or a cancellation.
• You have become permanently disabled since taking out the loan.
• The loan is fraudulent and not your loan.
• You dropped out of school or didn’t attend and the school has not refunded your money.
• You have filed for bankruptcy and completion of the action is still unfinished or else your loan debt was discharged.
• You obtained the loan to attend a “trade school” that closed prior to the completion of the course or else you were incorrectly certified to receive the loan.
You can seek help to resolve your problems online or contact Florida bankruptcy services if you feel that bankruptcy is inevitable.
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