If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

How Do I Stop An Administrative Wage Garnishment?

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.

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How Do I Stop An Administrative Wage Garnishment?

You can stop an administrative wage garnishment by proving:

  • The debt is not enforceable against you
  • The amount of the debt is incorrect
  • An administrative wage garnishment would constitute a financial hardship

How Do I Stop An Administrative Wage Garnishment

You Must Timely Request A Hearing On 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 Do Not Owe The Debt

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.

The Amount The Bureau of the Fiscal Service Claims Is Incorrect

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.

The Administrative Wage Garnishment Would Constitute A Financial Hardship

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.

Contact Protect Law Group For A consultation

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.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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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

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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

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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.

$150,000 SBA 7A LOAN – NEGOTIATED WORKOUT AGREEMENT

$150,000 SBA 7A LOAN – NEGOTIATED WORKOUT AGREEMENT

Client’s small business obtained an SBA 7(a) loan for $150,000.  He and his wife signed personal guarantees and pledged their home as collateral. The SBA loan went into default, the term or maturity date was accelerated and demand for payment of the entire amount claimed was made.  The SBA lender’s note gave it the right to adjust the default interest rate from 7.25% to 18% per annum. The business filed for Chapter 11 bankruptcy but was dismissed after 3 years due to its inability to continue with payments under the plan. Clients wanted to file for Chapter 7 bankruptcy, which would have been a mistake as their home had significant equity to repay the SBA loan balance in full as the Trustee would likely seize and sell the home to repay the secured and unsecured creditors. However, the SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection to the SBA. Clients then received the SBA Official 60-Day Notice and hired the Firm to respond to it and negotiate on their behalf. Clients disputed the SBA’s alleged balance of $148,000, as several payments made to the SBA lender during the Chapter 11 reorganization were not accounted for. To challenge the SBA’s claimed debt balance, the Firm Attorneys initiated expedited discovery to obtain government records. SBA records disclosed the true amount owed was about $97,000. Moreover, because the Clients’ home had significant equity, they were not eligible for an Offer in Compromise or an immediate Release of Lien for Consideration, despite being incorrectly advised by non-attorney consulting companies that they were. Instead, our Firm Attorneys recommended a Workout of $97,000 spread over a lengthy term and a waiver of the applicable interest rate making the monthly payment affordable. After back and forth negotiations, SBA approved the Workout proposal, thereby saving the home from imminent foreclosure and reducing the Clients' liability by nearly $81,000 in incorrect principal balance, accrued interest, and statutory collection fees.

$750,000 SBA 504 LOAN - NEGOTIATED TERM REPAYMENT AGREEMENT

$750,000 SBA 504 LOAN - NEGOTIATED TERM REPAYMENT AGREEMENT

Clients personally guaranteed SBA 504 loan balance of $750,000.  Clients also pledged the business’s equipment/inventory and their home as additional collateral.  Clients had agreed to a voluntary sale of their home to pay down the balance.  We intervened and rejected the proposed home sale.  Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.

$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT

$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT

Clients personally guaranteed SBA 7(a) loan balance of over $300,000.  Clients also pledged their homes as additional collateral.  SBA OIC accepted $87,000 with the full lien release against the home.

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