I have a friend who just got a letter that his wages were going to be garnished because of a default on his student loans. Since he works for the County they are probably going to cooperate. He can't afford it though. Is there anything that can be done? Will demanding validation do any good? Is there any way of stopping or postponing garnishment until he's in a better position financially?
It might be too late. The garnishment will be 15% of net (I believe.) i have heard that some folks are able to rehabilitate their loans, but have to make several months worth of payments to show good faith.
At this point there is no way to stop the garnishment, short of overwhelming evidence of a hardship case. It will depend upon the state he resides in for the final garnishment % of his pay.
How about having the judgement vacated? BTW I don't thnk they even have a judgement yet. Can they garnish without an actual judgement?
They will need a judgement to garnish wages; if you can find a way to vacate the judgement, it may work. But, student loans are a tricky thing, with a lot of terms and conditions that you don't realize until a situation like this one. The courts are also very likely to issue base upon backing of the Federal government, and the perception that a college educated person has the sense and means to pay thier debts.
If it's a federally-backed student loan, they do not need a judgment to garnish. Student loans are an exception to the rule. If they are backed by the government, wages can be garnished and bank accounts levied (in accordance with state law). He should also expect that any tax refunds will be garnished as well. Student loans are not something to be messed with.
The time to call the lender and talk about deferments, a change in payment amounts/plans, and/or forebearances is BEFORE you get behind. It ain't pretty AFTER you get behind.
