Skip to main content

Debtconsolidationcare.com - the USA consumer forum

DCS threatening wage garnishment. Please help...

Date: Tue, 11/24/2009 - 07:50

Submitted by chrikan
on Tue, 11/24/2009 - 07:50

Posts: 6 Credits: [Donate]

Total Replies: 6


Basically, my government student loans have defaulted gone to collections (DCS). They are claiming that I have been 'approved' for waged garnishment, although when I called the Department of Education, they said a letter has not yet been sent to my employer. Apparently that is the deal breaker.

I am willing to make a montly payment, around $100/month. I have $11k principle, $2k interest and $3k in 'collection fees'.

Basically, can you suggest the best way to handle this? I would like to get out of having to pay 15% of every check and hacing to pay any collection fees.

Maybe one piece to note is that they mailed me a letter on October 22, 2009 threatening wage garnishment. Apparently, since I did not reply within 30 says of that letter, I am at a greater disadvantage. Although, when I called the Department of Education, they said that my case is under review for 'hardship' because I faxed DCS 2 paystubs yesterday and asked for 'hardship' aid.

Any advice is appreciated! Thank you!


Because you did not reply in the 30 days, they may proceed with the garnishment without the hardship review...those who are appealing within the 30 day window are dealt with first.

You misunderstand what approved for garnishment is.....if you fail to enter into repayment and the CA verifies your employment and that 30 day letter is sent, you are approved. "Approved" would be a DCS term, not a DOE term so DCS's claims are true....you are in garnishment...it just hasnt started yet.

The only way you are going to get out of paying the collection fees it to rehab your account. With a $16K balance, your payment for rehab would be $150-160 per month for 9 months. You may be able to get lower, however the garnishment pending my muck it up.


lrhall41

Submitted by SOAPLADY on Tue, 11/24/2009 - 08:08

( Posts: 17315 | Credits: )


Thank you!

So, are you saying that I can 100% expect for a 15% wage garnishment at some point in time? If so, how long does that go for?

I called the Ombudsman and they said that I may want to look into Loan Rahabilitation. It sounds like that is a good idea.

How does Loan Rehabilitation work if I have been 'approved' for garnishment by DCS?

Thanks again!


lrhall41

Submitted by chrikan on Tue, 11/24/2009 - 08:17

( Posts: 6 | Credits: )


You need to call DCS and try to set up a rehab ASAP....it really depends on how closely they follow the rules They may cancel the garnishment if you get set up on a 9 month rehab plan thru auto debit. If proeed with the garnishment, rehab payments have to be over and above the garnished amount so you need to act quickly. Have your ducks in a row, be prepared to give a full financial statement.


lrhall41

Submitted by SOAPLADY on Tue, 11/24/2009 - 08:22

( Posts: 17315 | Credits: )


I really appreciate this help. Thank you!

What type of information is needed for a full financial statement? Rent, cell phone, etc? I'm guessing.

Is it best to give that information to them in writting, rather than over the phone? Or does it not matter?

If the garnishment starts, how long does that go? Until everything is paid?

Thanks again!


lrhall41

Submitted by chrikan on Tue, 11/24/2009 - 08:26

( Posts: 6 | Credits: )


Ah. I just called my DCS Rep and spoke the magic words "Loan Rehabilitation".

Basically, she said that Loan Rehab is a set number, 15% of the last 2 checks, which I need to fax over. This doesn't work great for me, because I am in sales, so my commissions change every month. The last commission check was huge (a good month), so that kinda screws me.

Am I understanding correctly?



Thanks again.


lrhall41

Submitted by chrikan on Tue, 11/24/2009 - 08:40

( Posts: 6 | Credits: )