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About seven years ago I took out a loan for college and dropped out after several "issues" arose. For hardship purposes, I am unable to pay my student loan and I have exhausted the forbearance period.
I have received a notice from my employer that my wages will be garnish at 15% on my next pay check( In two weeks). How can I reverse this decision or fight it in court? I can't bear to spare a penny at this point. Any suggestions?
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Originally Posted by StopItUncleSam
Unfortunately inability to pay is not a defense. Student loans are not dischargeable in bankruptcy, either.
Weren't you notified of the pending Court case and subsequent Judgment? That was the time to raise a defense. If you were not served/notified, then you could move to set the Judgment aside. I have no doubt that the creditor will succeed the second time around but perhaps you could make a payment arrangement and not have the garnishment filed.
But otherwise - student loans live on forever and they appear to have a Judgment against you which entitles the creditor to take any legal means to collect his money.
I didn't receive a notice/order by mail or by a server. I read something from the department of education( I have no idea if they have judisdication over this issue) but it claims they don't have to have a court order. I have been thinking of serveral defenses, but I am not sure how to contest it. Thought about contesting my mental state at the time I signed any documents. Secondly, I read something about not being able to collect debts if the debtors wage is to be left is below 30 x the states minimum was . My take home pay is 15 dollars below that.
I believe, because student loans are government subsidized, that they do not have to et a judgement to get a writ of garnishment, So there is nothing you can do.
Yes, in most states they do not have to go to court, do not have to get a judgement and can merely proceed with a garnishment if you don't pay.
Many states don't even require that you get notice, so in this there is nothing you can do, except wonder why you did not make paymnet arrangements years ago.
Okay inablity to pay is not defense? I should have wondered why I didn't make an agreement years ago? Simple explanation. I didn't have the money then, and I don't have it now. All they are doing is taking away my basic necessities. California has a high standard of living yet the rate is based on Federal wage. I will be homeless. I make less than $950 amonth. When I took out the loan I made $2500 a month. My rent is 750 a month. Not to mention food , gas to get to work( or bus once I can't afford insurance) utilities and basic necessities so I don't look like a dirty bum while I earn my pennies.
Secondly, when I took out my loan I didn't know what I was doing exactly. Is that contract binding if I can prove I wasn't in the right state of mind? If I can prove that the I was tricked and told if I dropped out I wouldn't have to keep paying? The school collect money months after I dropped for medical issues. I was sent a check from the school but never cashed it. Can they collect on monies I never received or do I have to sue the school?
Really, I wondered why I even tried! I would have been better off getting knocked up going on welfare and my food stamps instead of feeding my children.
Oh and to the last response about notice, state laws don't override federal laws when dealing with student loans. US deparent of education says 30days notice. I was given 17 days via my employer not the gauranty agency.
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Originally Posted by StopItUncleSam
Didn't know this was a Federally guaranteed loan - which I am now assuming it was?
Mental instability is also not a defense.
You should have received SOMETHING, either by mail or in person, indicating that a Judgment or lien was being filed - I'm surprised if that was not done, although, as others have said, it is not necessary in "most" cases.
Federal law does supersede State law, if that's the question. How much can be taken from your pay varies from State to State.
You seem to *know* all the answers, so why are you here asking the question if you are just going to argue the expert's responses?Quote:
Originally Posted by StopItUncleSam
You state that the school sent you a check yet you never cashed it. How is this the school's fault? And were you told that you wouldn't have to keep paying your tuition or were you told you wouldn't have to pay back money already owed?
You say you make 950 a month and you need that money to survive. They are going to garnish 15% of that... so my advice would be to get another job to make up that $140 difference.
You signed a contract where you got money and promsied to pay it back. Inability to pay is not a legal defense.
If you can prove that you were not mentally competent to sing a contract or that the contract was offered under false pretences, then you might have a case. But that's going to be very hard to prove 7 years after the fact.
As for the notice issue, I've never heard of any instance where advance notice of a granishment is required. It might be required that you be given advance notice that the loan was in default and that they were exercising their rights under the contract, but I suspect that occurred a while ago.
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