SSI BENEFITS ARE BEING GARNISHED FOR 30 YEAR STUDENT LOANS BY COLLECTION AGENCY THAT I CAN’T GET TO ANSWER THE PHONE OR RETURN A CALL –15%. THINKING ABOUT FILING CHAPTER 7 BK FOR HARDSHIP AS I’M RETIRED AND THIS IS HARDSHIP ON ME?
WILL A BK STOP THIS OUTRIGHT?
So it sounds like this issue has been brewing for some time. A wage garnishment does not happen overnight. You can stop the wage garnishment by following these directions.
Alternatively, you can go for a student loan rehabilitation which can stop the garnishment and bring the loan current so you can get on an income-driven repayment plan with minimal payments.
While you might be able to eventually have your loans eliminated in a Chapter 7 bankruptcy you would have to file an additional Adversary Proceeding, which can be very expensive. Even then, there is no guarantee the loans will be discharged.