How do I stop wage garnishments?

Unfortunately, student loans are generally not dischargeable in bankruptcy. I have filed five year Chapter 13s to put garnishment off for five years, but that is not a solution, it merely kicks the problem down the road. Every Congressional session there is talk of amending the bankruptcy code to make student loans dischargeable, but so far nothing has happened. Student loans are dischargeable in bankruptcy on a standard of "hardship." This is a very hard standard to meet. A recent case where the court did allow student loans to be discharged involved a debtor who has disabled and caring for her disabled mother. If your loans are not private another non-bankruptcy approach is to apply directly to government for a hardship release from loans.

File a chapter 13 wage earner

A bankruptcy case could help somewhat, but only short-term and probably only in Chapter 13. You need to figure out how to deal with the student loans in the long run. Consult with an experienced bankruptcy attorney.

Find a good lawyer. Explore with him or her the possibility of filing under Chapter 13, and paying your student loans (but not most other loans) through a Ch. 13 plan. This way, in effect your other creditors would help you pay your student loans, which rarely can be discharged in bankruptcy. Good Luck.

See a lawyer. In some cases a chapter 13 may help you.

You can file a Chapter 13 and propose a lower payment to them, but unfortunately, there is little that can be done about student loan garnishments as they are not dischargeable in bankruptcy. You can also contact them to work out an affordable payment arrangement.

The most obvious, but probably impossible, way to stop the garnishments is to pay off the student loan. That being said, one way to stop or reduce the impact of a wage garnishment is to get a court order reducing the percentage of your pay that can be garnished. Another way is to negotiate with the lender. If an agreement is reached, make sure you comply and communicate with the lender as soon as possible when you expect a problem. Filing for bankruptcy could temporarily stop the garnishment but a student loan is usually not discharged in bankruptcy so you would still be expected to pay. If the bankruptcy reduced enough of your other debt obligations, it could make it easier to stay current on the student loan. It is possible a Chapter 13 bankruptcy could allow you to catch up on past due student loan payments and reorganize your other debt so you can stay current on the student loan. However, it appears your income is probably not sufficient for a Chapter 13 plan to be confirmed by the court.

Without additional information it is difficult to determine the basis for the garnishment. Typically a garnishment can only be made after the creditor has a judgment and only up to 15% of your wages. The student loan is a non-dischargeable debt, so a chapter 7 bankruptcy would only delay the garnishment. You may wish to consider a chapter 13. Also, you also might try and determine if that lender has a judgment against you which is the basis for the garnishment.

You could file a Chapter 13- make payments you could afford during the five year life of the Plan, then start paying again on the student loans after your Chapter 13 case was Discharged.