I have been default on a student loan and they have began garnishing my wages. I heard that if you have dependents they are not allowed to garnish your wages or your income tax refunds. Is this true? How can I stop it? Is my tax refund in jeorpardy?
2007-11-21 08:07:23 · 5 answers · asked by Jambalaya 4 in Business & Finance ➔ Taxes ➔ United States
Please guys...it's kinda too late and hard to just pay the bill. If it were so easy I wouldn't be asking the question.
2007-11-23 04:51:31 · update #1
There are two ways to MAYBE avoid garnishment and/or the 'capture' of your refund. You can arrange to make payment arrangements with whoever holds your loan. In doing so, you typically have to make some set number of payments before the offset will be taken off the tax refund, but if you keep making those payments, you'll be able to live life normally otherwise.
You can also apply for deferment. If you are having financial difficulties, you can typically have your student loans deferred for up to several years.
My best advice is to communicate with the people who hold your loan. I've been in your shoes - communication will help you get out.
2007-11-24 04:38:19 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
Sure! Just pay your bills!
A wage garnishment is based upon a percentage of your disposable income. That assumes that you filed the required financial disclosures with the court when you were ordered to do so. Many folks ignore that summons and are then shocked to discover that the court assumed that all of their income was disposable, as if they still lived with their parents. If you ignored the summons, you're now paying the price. Courts don't like being ignored, so it's not all that likely that they'd reconsider the garnishment amount though you won't know that for sure until you petition the court for reconsideration.
Your tax refund can be taken in total, regardless of your financial situation. If you have unpaid student loans your refund will almost certainly be captured.
2007-11-22 00:51:20 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You heard wrong. It might or might not change how much of your wages they have to leave you, depending on the state. But they can still garnish your wages. You can stop it by paying what you owe. And yes, if it's to this point, your tax refund is gone too, not just in jeopardy.
2007-11-21 16:12:12 · answer #3 · answered by Judy 7 · 4⤊ 1⤋
You heard wrong, they most certainly can take your tax refund.
2007-11-21 16:12:31 · answer #4 · answered by npk 7 · 5⤊ 0⤋
Absolutly, pay your bills and pay them on time.
2007-11-21 16:10:22 · answer #5 · answered by Tex S 5 · 4⤊ 2⤋