Loan Garnishment that exceeds income and rehab
Our request to stop the garnishment was somehow lost in the mail (Imagine that) and the AGW has gone through. My husband and I have sent in every record we have showing that we a) live conservatively and b) cut our expenses and will still run into deficits of 439.00 per month. His involuntary deductions, largely because of his advanced age when starting 403B contributions and medical insurance, eat up 25 percent of his income. He, by state law, cannot suspend these. We will lose our house within the next three months if the hearing does not go in our favor.
We've offered Texas Guaranteed the maximum he can take out of his retirement if they will let us establish a fair payment. They've said no. We've offered them, if the judge reduces the garnishment, a sum of money in addition to the garnishment to be taken out monthly. We could get this money if we sold our gold (engagement rings, wedding rings, etc). They've stated that they never have to lift the garnishment and if the judge decides in our favor, they'll pursue us again. Can they, by law, refuse extra payments or a rehab so that we may enroll in the IBR/Public Service Forgiveness program that we've tried to get into for years?
Any input would be appreciated.
45k AGI
7,500 Garnishment
3 dependents
110,000 debt
Quote:Can they, by law, refuse extra payments or a rehab so that
Quote:
Can they, by law, refuse extra payments or a rehab so that we may enroll in the IBR/Public Service Forgiveness program that we've tried to get into for years? |
I dont understand this statement....why did you not consolidate with Direct Loans under the ICR/IBR years ago?? The only way to get into the Public Service Forgiveness program is to consolidate...what was holding you up?? Applying for and getting a direct loan is and always has been simple.
FYI...no "judge" per se decides your fate. It is simply administrative staff that does it. I used to be an AWG manager and made hearing decisions based on guidelines. They may reduce your garnishment but it is not likely they will suspend it. And there is no way you can rehab....you cannot afford the rehab payments. Rehab requires "reasonable and affordable payments." What is affordable to you probably is not reasonable based on your loan balance. Your interest is the region of $600 per month...you would need to be at least covering interest. Again you should have consolidated years ago.
In 2008, my husband was told to file for IBR. We sent the reque
In 2008, my husband was told to file for IBR. We sent the request to have the IRS send our paperwork to the lender. The paperwork was received, I was told, one day too late. The man we spoke with said that we could not reapply for the program for six months and, given my husband's prostate cancer diagnosis, it would be better to take a hardship deferment. In 2009, we filed both the Alternative Declaration and consented to have our information forwarded to Citibank for the IBR program. Again, they said that it was late. We were told that the minimum payment would be 720.00 dollars. Even after I cancelled cable and telephone service, this would have left us negative 429.00 per month. I ask for an extension so that we could liquidate his 403B contributions and sell our house (we would move in with my mother) while paying around 200.00 per month. They refused and said they would garnish. We quickly applied for consolidation and IBR through Direct Loans but were told that we missed the deadline by two days. I know that we should have done things more quickly but facing imminent death makes everything pale in comparison. Thanks for the input. I know that 600 per month is reasonable, but I cannot fathom that a panel will say that negative income is fair. The Obundsman office has agreed to help, along with a staff member in my Congressman's office, and the national consumer law center.