Expert: Michael Brotherton - 11/30/2007

Question
In 1988 my now exwife and I received student loans to attend 2 different schools. She went to Tyler school of Business and I went to American Truck Driving school. Her loan was for somewhere around $8000.00 and mine was for around $2000.00. In 1992 we consolidated the laons thru Sallie Mae and made payments on it thru 1999 when I filed for a divorce. Our divorce decree stated she was responsible for the debts in her name and I was responsible for mine in my name. I received custody of kids and agreed to no child support in return for her not seeking money from my retirement account of which can not be drawn from till you retire. I am now being contacted by DCI collection agency trying to get me to pay back the student loan my exwife defaulted on after our divorce. The principle is $8300.00 and interest around $7000.00. They have contacted my employer and have sent me notices of garnishment of my wages. My exwife is disabled and can not work full time and they refuse to split loan in half and let me pay and be responsible for half and her half. They want $135.00 a month but in on lump sum not two different payments of $67.50 and have said even if exwife gets discharge due to disability i will then still be responsible for entire loan. My current wife and I have my stepson who is 17 who is also totally disabled and when spend over $500 a month in medicine and Dr. visits even with health insurance on him. Having to repay this even at $67.50 a month would be a hard ship. Is the something I can do to get them off my back and out of my pocket before the do sent the Garnishment  thru. They contacted my employer without my knowledge or permission and I never told them where I worked or who to contact. Help please.
                     Mike Oden

Answer
I am afraid they may be able to attach your wages, an that without prior notice. Government guaranteed student loans allow for collection agencies to do some things that other creditors cannot, one of them is to not go through legal due process to garnishee wages.

Even if the divorce decree obligates her to pay the bill, the courts cannot alter or void the original agreement or remove your name from it.

Make sure you read the garnishment notice. There may be some options that could stop the gx or you may appeal the gx. This depends on your state collection and garnishment laws. I cannot tell where you live so this is all general information. Please reply to this message and let me know where you live and I will see if there are any specific options for you.

There may be no way out of paying this debt although a Chapter 13 BK may be one way to keep payments down if you also have other debt.