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If your wages are being garnished for student loans can a credit card creditor garnish your wages at the same time?




I believe the answer is no.They have to wait in line but I am not 100 % sure. I will message a knowledgeable moderator here to double check.

Sub: #1 posted on Thu, 08/28/2008 - 08:10

mobile0311 mobile0311
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Student loans only garnish 15% of your disposable wages. If your state allows higher, you can be garnished for the difference, up to the state maxiumum. Check your state rules.

Sub: #2 posted on Thu, 08/28/2008 - 08:28

SOAPLADY SOAPLADY
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There is a Federal cap at 25% of your wages that can be garnished at any time. Many states set their own cap (like Illinois is 15%). For garnishments, state laws trump Federal.

If the student loan is maxing out your state cap, then the credit card has to wait in line until the student loan is done with. However, if there is still room to meet the cap, then the cc can come in and max it out. For example, if your state has no cap then Federal prevails at 25%. If the student loan is only taking 15%, then the cc can concurrently take 10% to reach the 25% total. (Although this sort of situation is rare).

Usually creditors just wait in line behind each other, when one is paid off then the next one starts.

Sub: #3 posted on Thu, 08/28/2008 - 20:35

DebtCruncher DebtCruncher
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