QUESTION

I was wondering if there is anyway to fight a student loan wage garnishment. I have been under the garnishment for over a year now and lose 400-600.

Asked on Feb 21st, 2012 on Debtor and Creditor - New York
More details to this question:
Due to a prolonged illness I have fallen behind in rent and face eviction and have had to put critical medical care on hold. The garnishment has left me unable to pay my bills or take care of my health. Also is SSI benefits subject to federal student loan garnishment? The turth is all I am looking for is some form of temporary relief till I can get back on my feet and maybe renegotiating a lower amount. Also if I could get out of default I qualify for loan forgiveness as I work in a high need school. Any help or information you could provide would be greatly appreciated.
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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There are a few things you can do.  You can file a bankruptcy case (most likely a Chapter 7) and seek a determination that repayment of the loans will constitute an "undue hardship" on you.   The evidence needed for that varies from district to district so you should consult with a bankruptcy attorney in your area. Even if you don't qualify for the undue hardship, you could likely do a Chapter 13 case with a much lower monthly payment than is presently being garnished.  While it wouldn't discharge the student loan debt, it will give you a way to free up some cash.  In any event, it's worth exploring those options. Another important option is consolidating your loans with the Direct Loan Servicing Center and doing an income contingent repayment plan.  You can contact them at http://www.loanconsolidation.ed.gov/ You will likely first have to bring your loans out of default, but that can usually be done one time fairly easily. More information on student loans in general can be obtained at: http://www.studentloanborrowerassistance.org/   Hope this helps.   Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr
Answered on Feb 21st, 2012 at 1:14 PM

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