Self-employment and Wage Garnishment Question

[Curtisg]

Hello, I am self-employed currently, but in reality I'm basically unemployed because of the recession/financial crisis. My business was tied to the lending industry and that's in the tank right now. Anyway, I am concerned about a student loan I have. I deferred my payment for 180 days, but that 180 is now up and there is no way I can possibly make the payments. I've basically stopped paying all my debt since I started having financial distress. What can they do to me since I don't receive a paycheck? I usually arrange financing for my customers and receive a check from the financial institution once the work is complete. Any advise would be a great help to me, thank you.

[krzywon]

Federal student loans follow you for life. If you default, any wages you receive in the future may be in risk of garnishment and tax refunds you are due can be seized, without a court order.

 

Apply for a forbearance due to unemployment immediately. You can forbear loans for 12 months at a time, up to a combined total of 3 years for the loan. If you forbear them your loans will stay current, while you try to right yourself.

[sonicanatidae]

Student loans really do follow you for life.

 

My 2 defaulted student loans report with an open date of 1988.

 

Paid in full via garnishment+tax refund to CA on 02/2008.

[drewx2]

Hello, I am self-employed currently, but in reality I'm basically unemployed because of the recession/financial crisis. My business was tied to the lending industry and that's in the tank right now. Anyway, I am concerned about a student loan I have. I deferred my payment for 180 days, but that 180 is now up and there is no way I can possibly make the payments. I've basically stopped paying all my debt since I started having financial distress. What can they do to me since I don't receive a paycheck? I usually arrange financing for my customers and receive a check from the financial institution once the work is complete. Any advise would be a great help to me, thank you.

 

Like the above have said, the loans will follow you. I am in the same exact boat as you, I had a successful business up till about 2-3 years ago when things started to go right down the drain within the lending industry. My business provided marketing tools to lending professionals. However, I went back to school right at the time it felt like it was going to tank.

 

Now california wants $32k from me, which obviously I dont have.

 

I would call the lender and see if they can delay it for a bit more until you can think of something, however I bet the loans are the last thing on your mind to pay, and I don't blame you either.