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Paying off loan ?


TXMiche11e
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I have a quick question on a student loan that is being collected through wage garnishment. The amount is not big(1500) compared to some but, I have the money to pay this off.

My question is, how should I go about protecting myself? Should I mail or fax a letter? How can I make sure they will stop wage garnishment even when my payment has been received? This is not showing on any CR's but, with my luck it will.

All I want to do is pay this debt off yet, at the same time protect myself from them collecting any further amounts.

Please help with some advice

Can anybody give me ideas on what to put in the letter.

TIA

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If they are garnishing your wages it means that you have a judgement against you. Find out from your employer who the money is going to. You can also go to the courts, provide your information, and look at the information they have on file.

I doubt they would continue to garnish your wages once the balance has been paid in full (though there may be interest, according to your state laws). It would be illegal for them to continue to garnish your check and they would get into BIG trouble.

How long have they been garnishing your check? If it's been under a year or so, i would try to have them to vacate their judgment in exchange for full payment. Be sure to get it in writing.

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Just to clarify, for student loans it isn't necessary for them to have a judgment against you. Same for back taxes.

Child care is often cited as another exception but since that's determined by the courts, it's splitting hairs.

Make sure you notify your H.R. department in advance of sending the payment, in case they send off the money a few days before payroll goes through. It might even be worthwhile to decrease your payoff check by the amount of one period's garnishment, i.e. if you owe $1500, and they have been taking $50 per paycheck, send them $1450 so the next payroll deduction is the last, the debt is paid, and you have 2 weeks to get the garnishment cancelled.

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Make sure you notify your H.R. department in advance of sending the payment, in case they send off the money a few days before payroll goes through. It might even be worthwhile to decrease your payoff check by the amount of one period's garnishment, i.e. if you owe $1500, and they have been taking $50 per paycheck, send them $1450 so the next payroll deduction is the last, the debt is paid, and you have 2 weeks to get the garnishment cancelled.

Call the CA and ask for the payoff...they will get it from the client. A garnishment release will be mailed. However, depending on the size of your company and their efficency (or in-efficency), sometimes a garnishment payment is taken after the loan is paid off. Your payroll department cannot cease a garnishment until they receive the official release...that is written into federal law. It happens but it is refunded. Do not payoff less than the payoff balance...with accruing interest it could cause the garnishment to go another month.

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