Student Loan Collection Help and Survival Strategy

    student loan bankruptcy


    Student Loan Collection Help and Survival Strategy.

    Student Loan Collection

    Student loan collection has become one of the biggest issue affecting consumers. We offer some survival strategies to help you cope with an impossible situation.

    Student loan collection techniques. Seizure of your tax refunds. Garnishment of  your wages

    Seizure of your tax refunds. Oh, that sounds scary. Don’t worry. It’s easily fixed. The solution? Don’t have tax refunds. Then, there is nothing to seize.

    Adjust your tax withholding to the proper amount that you actually need to cover the taxes you will owe. You will bring home more money. There will be no excess, and no refund. The money will be in your pocket, not theirs. The IRS has a Web page and a calculator to help you figure it out. To use the IRS calculator, CLICK HERE.

    Wage garnishment. A wage garnishment is a legal step to make you pay a debt. It allows a creditor to take part of your pay check. Your employer is under a legal duty to deduct the garnishment amount and pay it to the creditor. Most student loan garnishments take 7.5% of your pay. The amount is is based on your net pay after normal tax deductions.

    Garnishment example.

    Let’s look at a typical case. Suppose your monthly take home pay is $2000, and your monthly loan payment is supposed to be $800. If you live on your own, there is probably no way you can afford that. You probably tried to get a livable payment. You offered them $400 a month. They said NO. The bill collector was nasty. They demand that you pay the $800 or else they will garnish your wages. You are worried to death. Don’t be. Here’s why.

    A wage garnishment can be a great deal in your favor. A 7.5% wage garnishment takes only $150 per month from a take home of $2000. That is more affordable than the $800 payment. Will your job care? Probably not. Besides, California law says your employer can’t fire you over one wage garnishment. The creditor has shot themselves in the foot. You offered to pay $400. They demanded $800. So they put a garnishment on you and they wind up with only $150. You have come out of this pretty well.

    Los Angeles Bankruptcy Self HelpWe also recommend these three great articles. They are FREE:

    Here’s a great book to beat your debt problems. 

    Los Angeles Bankruptcy LawyerA Human Guide To Bankruptcy throws you the life line you’ve needed. This is a fast, easy read. Written to help everyone who is considering bankruptcy. No mystifying legal jargon. Simple explanations. Down to earth advice. Authored by Los Angeles bankruptcy attorneys Leon Bayer and Jeffrey Wishman. They are the founding partners in the law firm of Bayer Wishman & Leotta in Los Angeles, California. Each author has practiced bankruptcy law for more than 30 years. There is 60 years worth of debt relief wisdom waiting for you in this little powerhouse. This book is a gem for understanding your legal rights under generous Federal bankruptcy laws.

    A Human Guide To Bankruptcy got a great recommendation from BEST BUYS BEST DEALS with Alan Mendelson. He talks about the book, HERE. Alan has this to say:

    The book offers an easy-to-read guide on the key problems faced by real people in financial trouble.  The book contains no-nonsense recommendations and advice for common debt and bankruptcy problems.  It’s a book about debt problems written for humans.

    Here is a great video interview of Jeffrey Wishman, conducted by TV reporter Alan Mendelson. Los Angeles Bankruptcy Attorneys, Jeffrey Wishman Interview.

    Synopsis: Student Loan Collection Help and Survival Strategy.

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    Leon Bayer and Jeffrey Wishman are Los Angeles Bankruptcy attorneys. They have been practicing bankruptcy lawyers in Los Angeles for 37 years and are Certified Bankruptcy Specialists by the State Bar of California. These are lawyers who bring experience, skill and creativity to the highly complex area of bankruptcy law. At this Los Angeles law firm, the your initial consultation with an expert is free. Mr. Bayer is a coauthor of Nolo's The New Bankruptcy: Will It Work for You?, authors the “Ask Leon” series on Nolo’s Bankruptcy, Debt & Foreclosure blog, and writes on bankruptcy topics for Nolo’s website. In addition, Mr. Bayer devotes a significant number of hours to volunteer legal services. The State Bar of California has commended Mr. Bayer for this work every year since 2004.