Wage Garnishment and credit reporting
Date: Tue, 03/06/2007 - 17:03
Wage Garnishment and credit reporting
Quick question: my wages are being garnished for delinquent student loans, which truth be told, is fine with me, at least they're getting paid. My question more resides in how this is being reported to the credit bureau. My CR shows two seperate instances of debt being transferred to a CA from the US Dept of Education as a KD. However, it doesn't show the CA the debt was transferred to. My other question is, once the debt is paid to the CA, will the two marks on the credit report under the US Dept of Education show as PIF? I guess my concern with this is, I'm getting no credit for finally getting this paid off. Thanks for everyone's help!
Once paid, it the balance will zero out but the default notation
Once paid, it the balance will zero out but the default notation will remain. You do not get "credit" or points for having a defaulted loan paid by garnishment.
garnishment
i am currently being garnished for a student loan. can a new creditor garnish my wages at the same time?
Who's the second creditor? Is it the IRS or another federally b
Who's the second creditor? Is it the IRS or another federally backed student loan? If so, yes. If it is an unsecured CC, they would first have to obtain a judgement against you. Even then, depending on your state, wage garnishment may be illegal.
