Will garnished wages prevent further action by collection agency?

Question

I'm in default on a student loan payment. Their collection agency has now garnished my wages. The reason I'm currently unable to pay the full amount that they're wanting me to is because I'm also trying to get out of credit card debt. Once that's done, paying what they're asking will be a breeze.

My question is....will their garnishing my wages keep them at bay from taking further action against me (such as taking my car, or my furniture) until I'm able to make full payments to them? I'm looking at anywhere from 6 months to a year to get out of credit card debt. Or is it inevitable that they'll also take my car? They didn't tell me they were going to garnish my wages, so I don't expect them to tell me if they take my car either.

They've also taken my tax refund. Will they also take the economic stimulus payment? I really hope not because I'm counting on that to take a big chunk out of my credit card debt. Thanks for any help.

Answer 1

Once they've attached your wages, they will not try to attach your property. They will however continue to attach your tax refunds and they will likely get your stimulus check.

As soon as you are able, call the Department of Education at 1.800.621.3115 to get the name and number of the agency who holds your loan(s). You can then contact them and set up a payment plan that will rehabilitate your loan(s) in about nine months, which will clear up the default mess on your credit. It will stop the wage attachment and the tax refund attachment and get you back in good stead.

By rehabilitating your student loan(s), the penalties and fees will be removed.

When a tax refund is applied to your loan, there is a fee applied as well. It reduces the impact of the payment. So you want to get that stopped as soon as you can.

I don't think they make this option clear to borrowers, which is why people end up in the situation that you're in.

Good luck to you.

Answer 2

I wouldn't count on a stimulus check.  It will likely be taken too.  They could take your car, are you behind on those payments too?  If so, don't be surprised if its not in your driveway one morning.

Answer 3

If your car is paid for then no, you own it free and clear so they cant take it.  They will however take your stimulus check.  I can tell you that much.  Because they garnished your wages im sure that it will keep them okay until the real payments can be mad.