Will consolidating my debt stop garnishment
It sounds, on its face, like wage garnishment should mean that your money comes with a sprig of festive holly.
But, alas, wage garnishment not only add value to your wages, it actually takes value away, by deducting up to 15 percent of your disposable income from your paycheck each pay period.
(Note: We are not providing legal information, rather, we are sharing information that we located online, consult with a lawyer and learn more about wage garnishment.) Being terminated from employment is also protected by law.
The Consumer Credit Protection Act protects employees from being fired for any one Wage Garnishment, but does not protect them from termination if there are two or more debt being garnished seperately.
Imagine if you logged into your bank account on payday and only 85 percent of your pay was there. The formula for determining the exact amount of your garnishment is more complicated than that, but, no matter what, they can’t leave you with less than 30 times the federal minimum hourly wage, currently 7.50, in income per week.
The government can do this because, well, it’s the government.
The most common objection is that the garnishment would cause financial hardship to you and your dependents.
Essentially you are telling the lender that if the garnishment goes through, you won’t be able to support yourself and your family.
For example, you don't owe the money, you are permanently disabled, or you negotiated a new payment plan and are current under that plan.7 million federal student loans are in default, and garnishment is one of the many ways the government can get their money back from you.Under federal regulations, the government can take up to 15% of your disposable pay if you’re in default on your federal student loans.Even if you don't have a defense to student loan payment, by requesting a hearing you may prompt the student loan collector to agree to a new payment plan.To learn more about student loan wage garnishments, defenses to payment of student loans, and many other student loan issues, check out the excellent information on the National Consumer Law Center's Student Loan Borrower Assistance Project.