Legal Question in Credit and Debt Law in New York
Salary garnishment
Can your salary be garnished for late payment of a student loan ? If so, at what percent ? Is it a percentage of your gross or net pay ? Can any other creditor garnish your salary at the same time ?
2 Answers from Attorneys
Re: Salary garnishment
Garnishment can occur after a judgment has been entered against you.
Re: Salary garnishment
Garnishment is a post judgment remedy...you can't be garnished for just being late. If you are very late, the loan can be accelerated...that is, all remaining payments can be considered due at once. If you don't pay, you can be sued. If a judgment is entered (after you are sued) the judgment creditor can garnish your salary for up to 10% of your GROSS pay for each pay period. Only one garnishment can be in effect at any time. You can't lose more than 25% of your gross salary (if you are, for instance also paying for child support pursuant to some Order of the Court). Best course...make up your late payments and get back on track...see of the lender will allow you to consolidate the loan. Good luck
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