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.


Video Testimonials

Tampa Bankruptcy Law Blog

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
Read More

Can Your Spouses Debt Force You Into Bankruptcy?

If you're married and your spouse has a lot of debt, you may be wondering if that debt can force...
Read More

Do You Need a Bankruptcy Attorney If You’re Divorcing with Financial Problems?

Divorce and bankruptcies are more common than many people realize. Financial problems make a stressful transition even more difficult. If...
Read More

Can You File Bankruptcy without Your Spouse?

Filing for bankruptcy is a decision that should not be taken lightly. It can affect your financial life and the...
Read More

How Seniors Can Avoid Bankruptcy

Seniors are at a high risk of bankruptcy, but there are ways to avoid it. What do you need to...
Read More

What Happens If I Own Too Many Assets to File for Chapter 7?

Does hiding assets in bankruptcy protect them from your creditors? If you own too many assets to qualify for Chapter...
Read More

How to Find the Best Lawyer for Filing for Bankruptcy after Retirement

Many retirees decide to file for bankruptcy as a way to get a fresh start. But finding the right lawyer...
Read More

Does Declaring Bankruptcy Affect My Retirement Savings?

When you're struggling with debt, the thought of bankruptcy might cross your mind. But what would that mean for your...
Read More

Is a Reverse Mortgage Right for Me?

Reverse mortgages in Florida are loans that allow homeowners 62 and older to borrow against the equity in their homes....
Read More


For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More


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

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation


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