Federal Student Loans CA calling every week

[romecoo]

Over 10 years ago I defaulted on several student loans. they were on my credit report for about 7 years after I defaulted and thn they were gone. Every so often I would get something in the mail or a call, but lately CA have been calling my hose on a regular basis.

I know there is NO SOL on Fed Student Loans and I know they can garnish your Federal Tax returns but can they cease my savings or checking accounts.

Any info would be appreciated!

 

I just want to know exactly what rights they have besides garnishing Federal Tax returns? Can they garnish my wages? Can they garnish state tax returns? can they cease Savings and Checking accounts???

 

Thanks

[Saria]

Yes, they can garnish your wages - 15% of your net pay - without a court order. I have heard of some people having state tax refunds offset, but never had that happen myself. As far as I know, they can only attach your bank accounts if they get a judgment against you.

[romecoo]

Now will you know b4 hand if a judgment is handed down... and will I be informed b4 hand if someone is going to court to get a judgment?

[Saria]

It would work like any other civil case. You'd be served with a summons and complaint, have an opportunity to respond, probably go to at least one court hearing, etc. If anyone - not just in this matter - gets a judgment against you without your being served, it can generally be dismissed.

 

Don't forget, this doesn't apply to wage garnishment. They don't need a judgment to garnish your wages. You should, however, be sent a letter and given an opportunity to appeal, assuming they have your current address.