Hello, In early 2006 I received a disater SBA loan due to Hurrican Katrina. In the late summer of 2008, I got behind on my payments. I then called SBA to ask if there was a payment plan I can get on to be able to catch up with the late payments and I was told no. In October 2008 I received a phone call from a collection agency regarding my delinquent loan. I asked her if there were payment plans and she gave me 3 options. All of the options required a large down payment (the smallest being $7500) with monthly notes. I told her that I was not able to do that, but I could pay $400 a month. She then told me that those were my only options and that was it. In December 2008, I received a packet in the mail from the collection agency asking me to list out all of my monthly expenses. I did that and faxed it in. In January 2009, I called to see what the outcome was of that and I was told that "that was really nothing", just information they needed to keep on file. I asked the lady (my case was given to another agent) what are my options now and she told me the same 3 that were given to me back in October. About 3 weeks ago I received a letter in the mail from the collection agency stating that they were going to start the process to have my wages garnished by taking up to 15% of my salary. In the meantime, I filed my 2008 taxes, and I was just informed that I will not be getting my refund because it has been applied to my debt. My question is can they take my whole income tax refund and garnish my wages for the whole amount of the loan or could they have just taken what was past due? I appreciate any help.