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Question for the Money Doctors

Question submitted on Aug 18, 2012.

Question

Hello. Thank you for taking the time to read and respond to my question. I am a single mother of two children. I am in debt but who''s not? I recent recieved a letter in March that my wages will be garnished. I work full time and try to pay my bills in full and on time occassionally letting one slip to do for my children. My question is, is there something I can do to stop the garnishment? Student loan $29,000. I cannot afford to support my children and I have applied for food stamps and Im being denied. I also want to buy a house (1st time home buyer)but I know that its way out of my reach. HELP!!!!!

Answer

Hi.  It sounds like you are in a real bind and I hope my brief comments can help.  I would first start by contacting the company who services your student loans.  With open and regular communication, they may be open modifying your payment arrangement instead of garnishing your wages.  If it is too late (i.e. the garnishment is ordered by a judge) and you feel that the garnishment would cause undo financial hardship, contact a bankruptcy attorney.  Most attorneys will give you a free initial consultation to discuss your options (although keep in mind that attorneys only get paid when you file for bankruptcy). 

A couple of other resources to consider: 

** http://studentaid.ed.gov/repay-loans/forgiveness-cancellation#how-do-i-find   - FAQs on student loan forgiveness

** http://www.360financialliteracy.org/  - a free website with tons of great information for you to help improve your financial life

** http://apps.aicpa.org/credentialsrefweb/PFSCredentialSearchPage.aspx  - will direct you to a local CPA that can answer your questions directly.

Good luck to you and your family. 


For additional information visit http://www.360financialliteracy.org/