Wage Garnishment

[jterry]

I have outstanding student loans with two companies. I assume they are in the process of trying to garnish my wages. I don't want this.

In the case of company #1. I made an agreement to pay them 270/month. I started, but was laid off. For four months, from June until Sept. of last year, I made no payments. I had no stable income. I informed them of this. I began payments in Oct. and have made monthly payments until now. They refused to contact me (I wrote several letters, including one registered). They sent me a letter back saying I should contact them. I wrote again. They sent me a letter saying I was not paying and they would look to garnishment. I filed with the BBB and they said that because I broke the agreement when I was laid off, we had no agreement and they would garnish my wages.

The second company also never contacted me after I started writing. I sent them 250/month from Oct until now. I sent them a registered letter. I filed with the BBB asking for contact. They sent me a letter outlining what I had sent (monthly). Then no more contact. I sent a letter and another registered letter. I can only assume they are going to garnish my wages.

I make 34,000/year. I take home 2,000/month. Between the two companies, I have nothing (I support my daughter, pay for after school care, pay for gas to get to work -- 300/month). Anyway, I don't know what I've done wrong. I cannot contact them by phone. I write. They don't respond. Can they refuse to negotiate with me? This feels so unfair. I know I didn't pay. But I have been for six months. And I pay more than is really possible. I have summer coming and I can't afford child care, to work, and pay them as much as I do.

HELP.

 

[jterry]

Opps, just to be clear. When company #1 responded to the BBB that is what THEY said. That we had no agreement, I broke the agreement, and it is my fault. I guess it was. But I'm a single mom with no child support (I had her on my own -- she has no father). And I had to pay the bills. As soon as I got a job I started paying again. Anyway, the company said I had no agreement with them and that's why the money I have been sending didn't 'count' as meeting my obligation.

 

[lostinmn]

Wage garnishment doesn't just happen because someone wants it done. It only happens after a judge placed a judgment against you and those companies are trying to collect. Have they taken you to court?

 

[jterry]

Oh, of course. I guess I just thought they could have just done it.

Anyway, no, I've not been to court. And I *don't* want to go to court. I want to pay them.

Frankly, I don't get it. There are tons of people out there who probably don't pay. Here I am trying my best.

If I keep paying them, and they just don't respond. Well, then what? 1) Can they still take me to court? 2) Would they 'win' if I'm trying my best??

3) Should I send this months 'installment?' (I'm guessing that's a yes).

4) Is there something I should put in the letter that will *make* them write to me?? Is there a legal language that they will see and respond to?

TIA. I can't tell you how reassuring it is to have an answer of any kind. The stress of this is just awful.

 

[army judge]

Florida has some very friendly debtor laws.
Florida (my state Texas) have homestead exemption in play.
In most cases, your wages can't be garnisheed, unless, it is done by a governmental agency.
These debt collectors may be bluffing.
Normally, the Department of Education will make these wage levies, not a commercial collector/scavenger.

You should stop writing to them.
They are trying to intimidate you.
The federal government can collect against these loans, and usually do so by scoffing up your federal income tax refunds.
They do that before they attack your wages and bank accounts.
You might want to speak with a local attorney.
You also might want to get familiar with the debt collection and wage garnishment statutes in Florida.
As I said, they are very debtor friendly, an dmake life hard for these scavengers and bottom feeders!

Florida state wage garnishment amounts apply to creditors only. Your wages can always be garnisheed for student loans, child support and alimony in amounts that are sometimes higher than those listed.

http://www.bcsalliance.com/y_debt_statelaws_garnishments.html

Debt and Bankruptcy Laws -- Florida
WAGE GARNISHMENT EXEMPTION: Federal law applies [if head of household, 100% of wages are exempt)

MAXIMUM INTEREST RATE: Legal: 10% Judgment: 10% or or contract rate (but not more than 18%)
STATUTE OF LIMITATIONS ON ENFORCEMENT:

Open Account (credit cards): 4 years
Written Contract: 5 years
Domestic Judgment: 7 years (renewable)
Foreign Judgment: 5 years

Debt Kit has sample letters and techniques for dealing with debt collectors
BAD CHECK LAW DAMAGES: Amount owed plus treble (three times) damages, bank fees, reasonable attorney's fees, and court costs
BANKRUPTCY PROPERTY EXEMPTIONS (Florida Statutes Annotated):

Cannot claim federal exemptions, but can claim federal non-bankruptcy exemptions

The State of Florida exempts the property below from liquidation by the bankruptcy court to pay creditors:

Real Estate: Real property including mobile home used as residence, unlimited value, property cannot exceed 1/2 acre in municipality or 160 contiguous acres elsewhere; must file homestead exemption [Florida Constitution 10-4; 222.01, 222.02, 222.03 and 222.05] New bankruptcy law may limit real estate exemption
Personal property: Health aids, unlimited amount and an automobile up to $1,000 [222.25]
Insurance / Annuities: Annuity contract proceeds, unlimited amount [222.14]; death benefits payable to a specific beneficiary, not the deceased's estate, unlimited amount [222.13]; disability or illness benefits, unlimited amount [222.18]; fraternal society benefits, unlimited amount [632.619]; cash surrender value of life insurance, unlimited amount [222.14]
Pensions / Retirement Plans: County officers and employees, unlimited amount [122.15]; retirement benefits, unlimited amount [222.21(2)]; state officers or employees, unlimited amount [121.131]; teachers, unlimited amount [238.15]; police officers, unlimited amount [185.25]; firefighters, unlimited amt [175.241]; highway patrol officers, unlimited amount [321.22]; federal employee pension payments, amount needed for support / received 3 or more months before filing bankruptcy [222.21]
Public Benefits / Entitlements: Veterans' benefits, unlimited amt [222.201 and 744.626]; workers' compensation, unlimited amount [440.22]; crime victims' compensation (not for crime-related injury) [960.14]; public assistance, unlimited amt [222.201]; social security, unlimited amt [222.201]; unemployment compensation, unlimited amount [222.201 and 443.051(2)(3)]
Wages: 100% of head of family's paid and unpaid wages up to $500 per week for head of family (deposited into bank account for up to six months) [222.11]
Miscellaneous: Alimony and child support, amount needed for support [222.201]; business partnership property; unlimited amount [620.68]; damages to employees for injuries in hazardous occupations, unlimited amount [769.05]

http://www.bcsalliance.com/debt1_florida.html

Florida Statutes, chapter 77 outlines some very strict procedures for wage garnishment. Florida Statutes §222.11 offers a significant exemption to wage garnishment known as the "head of family" exemption. Effective July 1, 2001, the judgment creditor is required to serve a notice of rights to the defendant upon receipt of the employees answer with a form for the defendant to fill out to claim exemptions.

http://www.fair-debt-collection.com/state-wage-garnishments.html#10