Hi everyone, I’ve been in a tough financial spot for the last three years and need some advice. Here’s the breakdown:
I’m based in NY and currently dealing with around $550k-$600k in total debt.
$350k is from student loans, and the rest is a mix of consumer debt and medical bills.
I’ve faced six lawsuits from creditors so far and settled two. I’m handling them as they come.
My income is inconsistent, but I’m in the mid-6 figure range on a good year. I don’t have any real assets aside from my work computer.
I considered Chapter 7, but I don’t qualify because of my income. Chapter 13 was suggested, but the repayment plan expects me to pay $6,000-$8,000 monthly, which I can’t afford.
Wage garnishment is starting to look like my best option. Lawyers I’ve consulted have suggested Chapter 13, but I’ve done the math, and garnishment might be the only way I can manage everything. Here’s why:
Student loans take priority. Garnishment caps my payments, and other creditors only get a small slice.
Lower monthly burden. Garnishment would cap at around $2,000-$2,400 monthly, compared to the impossible amounts expected in repayment plans.
Negotiation leverage. With garnishment, I could save up money and offer settlements to creditors later.
The weird thing is that some creditors seem surprised when I ask for garnishment. One even backed off completely when I mentioned it. Maybe it’s complicated on their end?
Has anyone here actually used garnishment as a debt strategy? I’m not looking for legal advice but personal experiences and tips. Every lawyer I’ve hired just pushes for Chapter 13, but it’s not a real solution for me.
Corey said:
If you’re really earning mid-six figures, why not just pay your bills and stop overcomplicating this?
It’s not that simple. My ex-employer filed a baseless lawsuit to stop me from working, which left me without income for months. That kind of legal battle drained me financially. They eventually kicked out the guy behind it and settled for $0, but the damage was already done.
NY can be brutal with lawsuits. Creditors are aggressive there. If these are federal student loans, they can only garnish up to 15% of your wages. That might actually work in your favor if you’re already prioritizing those loans.
@Corey
Thanks for the insight. Yeah, I’m focused on federal loans. I’ve been able to drag out lawsuits for years by going pro se, which buys me time to settle when I have funds.