Legal Question in Education Law in Massachusetts

default on loan

I defaulted on my grad loans and the co contacted my employer without my permisson and told them they must deduct 15% of each pay check until it is paid in entirety. My manager told me she had to legally. I was out of work on medical leave recently and was not paid and am struggling to make ends meet with my entire check and afraid what will happen with 15% deducted each pay period. I have tried to contact the loan co and they havve not returned my calls.

I am not sure what to do and if this is legal for them to do and for my employer to do?

should i file bankruptcy?

please advise me? thanks

Asked on 4/26/09, 9:50 pm

1 Answer from Attorneys

Christopher Vaughn-Martel Charles River Law Partners, LLC

Re: default on loan

You should probably retain an attorney.

Your employer should not pay over any part of your paycheck unless the debt collection company has obtained a valid court order.

Student loans are not discharged in bankruptcy, but bankruptcy could still be a good option if you are overwhelmed with substantial consumer debt.

With the help of an attorney, you should establish some sort of pay plan for your student loan. If you do not, they will likely file suit against you.

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Answered on 4/27/09, 7:39 am

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