Legal Question in Credit and Debt Law in Oregon

Re: student loan collections

Generally a creditor has to obtain a judgment before garnishment. There are exceptions. A Govermental agency collecting a student loan may be able to garnish wages under the Higher Education Act 20 U.S.C. section 1905a. There are various rules governing this administrative process. You have to be given notice and you are entitled to a hearing. You have to have been give an opportunity to enter into a repayment agreement, but there is no requirement that the repayment agreement be reasonable or affordable. The amount subject to the the non-judicial garnishment is limited to 15% of disposable pay. You should also be aware that Federal and State tax refunds are subject to intercept. In your question you describe the joint account as an business account that you use for your trucking business. Unless your wife is an employee of the trucking business I'm not sure that funds in this account are her wages. The simple solution is set up a separate account in the name of the business. Don't commingle your wife's income with the resources necessary for the operation of the trucking business. You may want to consider setting up your business as a separate legal entitity such as a corporation or an LLC.