Legal Question in Credit and Debt Law in New Jersey

How do I avoid Tax Offset from a college loan now owed?

I owe about $30,000 in student loans and they have defaulted. My wages are now being garnished for $364/mo. I got a letter stating that I must make a voluntary payment on top of my garnishment in order to avoid tax offset where my tax refund will be taken. The agency wanted an additional $236/mo as voluntary. I am a single parent (3 kids)with many expenses living on a $38,000/yr income. This company is really difficult to reason with. Can a collection agency really demand this unrealistic $600/mo payment without allowing me to negotiate?


Asked on 10/15/07, 7:13 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: How do I avoid Tax Offset from a college loan now owed?

Within the bounds of the law, you should be able to adjust your tax withholding so that you don't get a refund.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 10/15/07, 7:30 pm


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