Wage garnishment...his/ mine/ or both?
Date: Wed, 12/10/2008 - 02:02
Wage garnishment...his/ mine/ or both?
My husband and I consolidated our student loans years ago...
we have not begun repayment yet but have been in deferment or forbearance for various reasons.
We will need to start paying soon but I was told that even on an "income sensitive repayment plan" our payment would have to be at least equivalent to the interest of $610 a month (regular payment would be $820 a month).
If we just let it default and go into collection for a 15% garnishment (much less than either payment option) do they garnish from just one or both sources of income (we both work and are both on the loans)?
Can these loans ever be discharged in a bankruptcy (our loan is held by Chase bank)? We have not been able to repay in almost 15 years (just have deffered or forebearanced, then consolidated to get another company who allowed a fresh cycle of defferment and forebearance).
we have not begun repayment yet but have been in deferment or forbearance for various reasons.
We will need to start paying soon but I was told that even on an "income sensitive repayment plan" our payment would have to be at least equivalent to the interest of $610 a month (regular payment would be $820 a month).
If we just let it default and go into collection for a 15% garnishment (much less than either payment option) do they garnish from just one or both sources of income (we both work and are both on the loans)?
Can these loans ever be discharged in a bankruptcy (our loan is held by Chase bank)? We have not been able to repay in almost 15 years (just have deffered or forebearanced, then consolidated to get another company who allowed a fresh cycle of defferment and forebearance).
They can garnish you both. I am assuming these are the old fe
They can garnish you both.
I am assuming these are the old federal spousal consolidation loans. You dont want it to default....that will mean additional collection fees of up to 25%. And with your balance being that high, you would risk being sued.
With you both working, you wouldnt have a chance for bankruptcy on the loans plus you wouldnt meet the Brunner test requirements of attempting to pay on the loan. Not paying for and leaving this is deferment/forebearance was the worst thing you could have done to yourself.
