Nashville Attorneys Clark and Washington Talk About the Consequences of Student Loan Default

    NASHVILLE, TN, June 03, 2015 /24-7PressRelease/ -- According to Nashville bankruptcy experts Clark & Washington, a student loan becomes delinquent on the first day that a borrower fails to make a payment. After being in delinquency for nine months, the loan enters default. At this point, the Department of Education has several options to collect on this debt.

They can take a delinquent borrower's tax refund. Before the tax offset is put into effect, however, the borrower is duly notified. He or she then has 65 days to contest the offset from the date of the notice.

The Department of Education can also obtain a court judgment to garnish a borrower's wages. They can garnish up to 15 percent of the disposable income of the delinquent borrower. The borrower can request a hearing for reconsideration within a given time frame. As long as the case is being reviewed, his or her wages are protected from garnishment.

The Department of Education can also use a borrower's Social Security retirement income or Social Security disability benefits to help pay for a student loan that is in default. However, the department cannot take any portion of a borrower's Supplemental Security Income to pay off a delinquent student loan.

In some cases, the Department of Education can take a delinquent borrower to court. Some states allow professional licensing boards to refuse or revoke a borrower's license or certification until the loan has been paid or adequate provisions for repayment have been made.

Consult with a knowledgeable and skilled bankruptcy attorney before you file for bankruptcy in Nashville. Clark & Washington has helped thousands of clients throughout the southeastern United States regain control of their financial through a successful bankruptcy filing. Call them today and see how they can help you do the same.

To learn more about their services, go to http://www.bankruptcyattorneyNashville.com/.

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.bankruptcyattorneyNashville.com/.

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