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.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
Our firm successfully negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
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