Taxes, Student Loans & Wages
In her bankruptcy practice, attorney Linda Tirelli routinely handles a combination of unsecured debt, secured debt and tax debt. Clients wanting to protect their assets are often in a complex financial situation and need relief from crushing personal or business related tax debt.
Student loans are difficult, but not impossible, to discharge in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.” The United States Bankruptcy Court for the Southern District of New York, where Tirelli practices, has the first student loan modification program in the country.
Wage garnishment occurs when a court issues an order that requires your employer to withhold a portion of your paycheck and send it directly to a person or entity to which you owe money. Generally, garnishment lasts until a particular debt is fully paid off. The debts for which a wage garnishment order may be entered include child support, student loans, taxes, and any debts that have been the subject of a collections lawsuit resulting in a judgment against you and a wage garnishment order. Except in the cases of child support, student loans, and taxes, a creditor cannot garnish your wages without first suing you, winning, and obtaining a court order.