Can a debt collector legally garnish wages if I fail to pay back student loans or do I have another option?

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Can a debt collector legally garnish wages if I fail to pay back student loans or do I have another option?

Asked on June 20, 2012 under Bankruptcy Law, Massachusetts

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If there is a judgment against you with respect to unpaid student loan that you owe, the judgment creditor (or the collection agency acting for the judgment creditor) can garnish your wages (up to 25% of your net paycheck each pay period).

Your other option is to file for bankruptcy protection but student loans are ordinarily impossible to discharge in a bankruptcy. However a reorganization bankruptcy filing may assist you on your cash flow with respect to your creditors.


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