CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Happens If I Don’t Pay My Student Loan?

can filing bankruptcy stop wage garnishment student loansCan filing bankruptcy stop wage garnishment on student loans?

If you’re experiencing significant financial struggles, you might be worried about wage garnishment. It’s one of many consequences that come with not paying your student loans and other bills.

What are the other consequences?

Your Loan Could Go Into Default

If you don’t make any payments on your student loans for nine months, your loan will be considered in default.  At that point, the entire balance of your loan will be due and your credit score will take a big hit.

Additionally, the government can garnish your wages and seize your tax refund to try and collect what you owe.

Your Interest Rate Could Be Increased

If you’re in default on your student loans, the government can increase your interest rate to more than 25 percent. That means you’ll end up paying even more money over the life of your loan.

This might not seem like the worst thing in the world if it solves your immediate problems and helps you avoid garnishment or loss of assets.

However, one of the benefits of student loans is the low-interest rate. Sacrificing this to create a temporary fix might be something you eventually regret.

You Could Lose Your Loan Eligibility

If you’re in default on your loans, you’ll likely be ineligible for future student aid. That includes grants, scholarships, and work-study programs.

You Could Have Your Wages Garnished or Bank Accounts Levied

The government can garnish your wages if you’re in default on your loans. They can take up to 15 percent of your paycheck to put towards what you owe.

This means if you’re already struggling financially, your situation will get even worse. The best thing you can do is address the problem and avoid garnishment.

Can filing bankruptcy stop wage garnishment from student loans?

Maybe. The best thing you can do is contact an attorney as soon as possible and discuss your options.

You Could Have Your Tax Refund Seized

The government can also seize your tax refund if you’re in default on your student loans. They’ll use that money to try and pay off what you owe.

Your Credit Score Will Take a Hit

If you’re in default on your student loans, your credit score will take a major hit. This will make it difficult to borrow money for things like a car or a home.

If you’re having trouble making your student loan payments, be sure to reach out to your lender as soon as possible. Can filing bankruptcy stop wage garnishment student loans? Can you lose your home or be turned down for a job because of student loan debt?

These are all things you can discuss with an experienced bankruptcy attorney.

There are many options available to help you get back on track with student loans, including deferment or forbearance. Your goal is to not allow yourself to fall into default, as the consequences can be costly and long-lasting.

Can Filing Bankruptcy Stop Wage Garnishment on Student Loans?

Maybe. Every situation is different.

Working with an experienced bankruptcy attorney can help you get organized and avoid wage garnishment and other serious consequences.

Contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions