Garnishments

Some companies run credit checks and background checks on potential employees. I know my company does. So, your son has two things against him when applying for certain jobs. Hopefully, he'll be hired by someone who won't look at his credit and excuse jail time 4 years ago, unless it was a felony. An employer cannot fire someone who has his wages garnished, so, once he gets his foot in the door he'll be OK. I am not sure if the plantiff in his case has to initiate starting the garnishment now that he is out of school and how long that would take. He may have a few months to find a job and save money before the garnishments begin. Now that he is done with school, he could get a full time job and a part time job.

Hi Jill,

Your son can't be garnished more than 25% for this debt, period.

He probably will end up being garnished when He starts working..At this point I think it would be a good idea for him to make arrangements. No, an employer can't fire you for being garnished, but it can cause extreme embarrasement and also puts a terrible black mark on your credit.

This is a judgment and it cannot be eliminated through bankruptcy. However, he can get some help on his student loan payments by requesting to be placed on the Income Contingent Repayment plan. This will allow him to report his income and his obligations which will significantly reduce the monthly payment on the loan.

Also, I believe student loan payments usually start 6 months after you graduate from school, unless you ask for a deferment or forbearance, but while they are deferred, it will gain interest.

Tort/Criminal liabilities will not be discharged in a bankruptcy. Wisconsin has this thing called a Wis Statue 128, which is called a debtor's voluntary ammortization of debts, and is similar to a 13 Bankruptcy, but is not one. A Wis Stat 128 will put a freeze on collection (including garnishments), and let the debtor make monthly payments to a trustee, who then distributes it among the creditors. Wisconsin laws specifically say it cannot be considered as a bankruptcy, and so it won't show up on the credit report, either.

Wow, that's a neat state law. Wish we had a law like that in Utah.