Florida Administrative Wage Garnishment Lawyer
Resolving Administrative Wage Garnishment
Administrative Wage Garnishment (or AWG) occurs when a borrower defaults on their student loan and, as a way for the creditor to be repaid, the borrower’s wages are involuntarily garnished. Most wage garnishment can only be upheld after the creditor files a lawsuit against the borrower and receives a judgement against them. However, Administrative Wage Garnishment does not require such a lawsuit judgment. According to the Bureau of the Fiscal Service:
- The federal government can order an employer to withhold up to 15 percent of an employee’s wages, without first obtaining a court order, to satisfy a delinquent non-tax debt such as a student loan;
- Administrative Wage Garnishment can be used even if state law does not allow wage garnishment.
- Administrative Wage Garnishment can be used only when the borrower has been at their current job for 12 or more months;
- Administrative Wage Garnishment cannot be used if the borrower lost their previous job involuntarily, such as being laid off or fired, and has not been employed at their current job for less than 12 months.
However, the federal government is required to give the borrower 30 day’s notice before ordering garnishment of wages. At this time, the borrower can agree to a repayment plan, pay the debt in full, or object and request a hearing. An experienced Florida administrative wage garnishment lawyer at Nowack & Olson, PLLC can help you navigate through the process.
Administrative Wage Garnishment Can Be Up to 15 Percent of Your Disposable Pay
Under federal law, the government can garnish up to 15 percent of your “disposable” wages. Disposable pay is your compensation, including your salary and bonuses, minus health insurance premiums, tax, and involuntary retirement or pension payments. Considering that the average American saves less than five percent of their disposable pay, according to CNBC, being at 15 percent may mean that you do not have enough money left over to pay your mortgage, put food on the table, pay for transportation to and from your job, or pay for health insurance.
You can suspend AWG by entering a rehabilitation agreement and making just five payments. This suspends AWG to give you much needed financial relief.
Avoiding Default, or Getting Out Before AWG
Once AWG is ordered by the federal government, it can be hard to stop. It is best practice to simply avoid AWG by not defaulting on your student loan. It may sound like a simple yet impossible solution, but an attorney can help you come up with a reasonable plan to avoid default. Similarly, if you have already defaulted, do not give up hope. Your options are to consolidate your loans, rehabilitation, or settlement.
A Florida Student Loan Debt AWG Attorney Can Help You Today
Administrative Wage Garnishment can become a vicious cycle: you may end up slowly making a dent in your student loan debt, but only at the expense of having to take out credit card debt or defaulting on your home mortgage and eventually filing for bankruptcy. AWG is not the best solution for you, it is only the best solution for the federal government. Call the experienced student loan debt attorneys at Nowack & Olson, PLLC today to start working on a payment plan that works for you and your family. Call us at 866-907-2970 to schedule a free consultation.