How Can They Garnish if I'm Self-Employed

how do they garnish wages

Tuffnutz said: 06-20-2009 09:02 PM

How Can They Garnish if I'm Self-Employed

My question involves collection proceedings in the State of: New Jersey.

My situation: I owe $35K in Stafford loans, both unsubsidized and subsidized.

I have received correspondence that they will initiate a civil suit against me if I don't pay full amount in 10 days. In the letter, they make it clear that one of the possible outcomes if a court order is entered against me is wage garnishment.

My question is: How can an administrative garnishment be imposed on me if I'm self-employed? What do they do in the case of someone whose income derives from being a contract vendor? (i'm classified as one, for the state of NJ).

I understand that my social security checks can be garnished, once I start to collect, but besides that, what can they effectively do, being that I have no regular wages, no salary, and no employer? (The

NJ Dept. of Treasury cuts my checks - I'm a vendor for the state and I provide a service). My work is very up and down - in regard to frequency of work available and amount I'm paid in each check.

Since I'm self-employed, I estimate my fed income taxes quarterly, and I'm fairly able to predict how much I will owe in taxes for the year and so I never overpay and/or receive any tax refunds, so there is nothing to garnish there either.

I'm low-income, and barely can pay the rent, cover my expenses, and put food on the table. BTW, I've been self-employed for about 10 years now, long before I ever got behind and defaulted on my loans.

It looks like besides Social Sec. benefits when I retire, they can't touch me.

Or can they? But how?

Much appreciate any info and help. Thank you in advance.

Last edited by Tuffnutz; 06-20-2009 at 09:22 PM. Reason: typo


Category: Bank

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