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Need advice on negotiating on a Garnishment

Date: Thu, 01/05/2006 - 09:58

Submitted by anonymous
on Thu, 01/05/2006 - 09:58

Posts: 202330 Credits: [Donate]

Total Replies: 1

Need advice on negotiating on a Garnishment


I filed bankruptcy in 2002 and included a TERI student loan as part of my debts to be discharged. I have now learned that private Law school loans CANNOT be discharged and thus this 10 year old debt is still hanging over my head. In 2002, I was unemployed and a law firm froze my bank assets for this old 8k loan. I panicked and filed bankruptcy. I moved on and thought it was resolved…I have a good job, got back in school and have my feral loan deferred. On Jan 2, I learned that the law firm as calmly waited to garnish my wages by the maximum 25%! I have some help in producing a lump some payment but I want to know HOW to go about negotiating as it seems I have little leverage now? Out of 8,000 what can realistically settle for???


Rick,

Welcome to forums :D

Wage garnishment is enforceable for federally backed loans. Private student loan is not federally funded. However TERI is a guarantor of private student loan, so go through the papers of agreement and check if anything is written there regarding wage garnishment.

It seems that your account is with collection agency. So try to implement any of these options at this situation-

1. Contact the agency and ask for rehabilitation. Since it is already defaulted for years, they might not allow deferment. So try to rehabilitate the loan.

2. Consider consolidation program. Since it is a private student loan, the consolidation process is almost same as that of any unsecured debt. I would suggest you to have a counseling session with professionals to discuss your problems verbally.

The consultant will be able to comment on how much you can settle on an 8k loan after analyzing all your financial obligations. The session would help you understand your options in detail.

As per as garnishment is concerned, you can definitely negotiate with them. Offer a lump sum amount as you have mentioned. Once they understand that you are willing to pay your loan back, they will cooperate with you.

Hope this helps. Looking forward to hearing from you very soon, best of luck.


lrhall41

Submitted by 4u.bryan on Thu, 01/05/2006 - 10:44

( Posts: 819 | Credits: )