Can student loan creditors garnish wages from your check monthly without your consent? If its illegal for them to do that, what can I do to stop them?
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Yari
ANSWERS: 6
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I think it takes a judgement from a civil court to do that but after that yes they can.Try to negociate a payment plan that you can afford.
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There is a certain percentage that they are allowed to take in relation to your income...but it *is* legal for ceditors to take some of your income so long as it's within the legal limit.
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I thought that filing for bankruptcy doesnt cover college loans just other debts like credit cards and so on..
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Yes, they can. They can also take your tax return. They can also add court fees to your outstanding balance.
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Garnishment is the price you pay for not paying your debt.
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15 percent of your net pay can be garnished with out a court order from a federally backed student loan. Quick fact, if you have a balance of $5000.00 the standard payment for a 9 year repayment for the "federal loan rehabilitation program" is 1% of the balance giver or take $10.00. So if you make 1000.00 monthly net pay your garnishment would be 150.00 monthly. With a voluntary payment it would be 50.00. also if you are in the program your tax returns may be protected, you can get your title iv assistance back after 4 to 6 payments. And if you are talking about ssi or ssi disability: yes they can take that as well. There is no statute of limitation on federal student loans and they will go on forever if not taken care of. Also guarantors take a percentage of garnishment payments for a "fee" and those payments do not count towards voluntary payment arrangements. Hope this helped
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