You can stop an administrative wage garnishment by proving you don't owe the debt, the amount claimed is wrong, it would constitute a financial hardship.
Book a Consultation CallHow Do I Stop An Administrative Wage Garnishment
You will receive a notice from the Bureau of the Fiscal Service stating that the Treasury intends to garnish your wages. Thereafter, you must submit a hearing request prior to the date stated in the notice. Moreover, if you fail to submit your hearing request timely, the Bureau of the Fiscal Service will issue an order to your employer to start garnishing your wages. However, an order will not issue until you have had a chance to be heard but only if you submit your hearing request on time.
You may present evidence and arguments proving that you do not owe the debt. However, you must provide evidence as to why you do not owe the debt. For instance, you may have been released from the debt by government agency that claims you owe the debt. Likewise, you may have paid the debt in full. You may have a myriad of legal defenses that prove you are not liable for the debt.
Furthermore, you may owe some or part of the debt, but not the amount the Bureau of the Fiscal Service alleges. As such, you may have records of payments you made towards the debt that show a lesser amount. Or you may have evidence that the government sold certain collateral, which paid down the amount of the debt. In any case, you will need to present evidence as to why Bureau of the Fiscal Service's claim is inaccurate.
In addition, you may claim that the proposed administrative wage garnishment would create a financial hardship. However, you must submit a personal financial statement and supporting documentation. The financial documentation must show that an administrative wage garnishment would not allow you to meet your basic living needs. These needs include food, housing, utilities, transportation, medical care, and other living essentials. It does not include such expenses as funding your 401k, your child's private school or college tuition, excessive housing costs, credit card debt and other expenses.
Protect Law Group's assertive attorneys are experienced in defending clients in administrative wage garnishment hearings. Our attorneys provide you with the best possible chance at winning by marshaling favorable evidence and presenting well-researched legal defenses. Contact us today for a free initial 20-minute consultation.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.
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