| Volume 101 Number 9 |
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The People’s Lawyer’s Tip of the Day
In Texas, there is no wage garnishment except for child support, student loans and some other federally guaranteed loans, and certain taxes.
A debt collector's threat to garnish your wages when he cannot do so, for example for a credit card debt, violates Texas and federal debt collection laws.
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Government Garnishing Social Security to Pay for Old Student Loan Debts
The cost of higher education isn't getting any cheaper. In 2012, college graduates left school with an average of $29,400 in debt. Once they're out of school, those same college graduates must find jobs to start paying back their debt.
But what about retirees who graduated decades ago? For them, another student loan issue is beginning emerge.
When a retirees default on their student loans, the government will take a portion of their Social Security income to pay down their old student loan debts. Since 2006, the number of Americans who've had their Social Security income garnished has tripled (to 156,000 retirees).
So what's the problem?
For retirees, Social Security income could be the difference between food and shelter or going hungry and cold. For a monthly check of $1200, the government will take an average of $180. Last year, the total amount garnished from Social Security checks topped out at $150 million.
Unfortunately, there's not much that can be done. Many of the old debts are locked in at interest rates above 7%, even though today's rates are around 3%. Because of strict repayment terms, refinancing usually isn't an option. As a result, it's up to legislators to make a difference. Senator Elizabeth Warren introduced a bill earlier this year to help retirees with student loan debts, but the bill was blocked in June.
Are you on Social Security? Could your old student loan debt come back to haunt you?
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Back to School - Save on College Textbooks
With the start of school here, it's time for students to get their textbooks. Aside from tuition and fees, textbooks are among the biggest expenses a student will face.
Where's the best place the buy your textbooks?
Although there is no universal answer, a study conducted by Consumer Reports found Amazon.com to be the most consistent with its low prices.
What other sites should you try when looking for the best prices for textbooks?
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Back to School - Managing Stress & Safety
As you send your kids back to school, it can be a stressful time for both you and your child. If you're concerned about safety, take a moment to sit down with your child to remind them of the basics. Whether it's how to properly cross the street or appropriate playground behavior, a simple conversation may make a world of difference.
What if your child is feeling stressed?
Things like managing friendships and meeting parent or teacher expectations can be particularly stressful for kids. In fact, it's possible that the stress can manifest physically, resulting in behavioral changes or sickness for your child.
Find out how you can identify and manage your child's back-to-school stress!
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Your Money
What is the value of your business?
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For the Lawyers
Filing judgment lien prior to final judgment violates Fair Debt Collection Practices Act.
Creditor filed a notice of judgment lien against consumer’s home and maintained it for approximately one month although the judgment it was based on never became final and was vacated.
Upon review, the Sixth Circuit Court of Appeals held that filing and failing to release an invalid judgment lien against a debtor's home while the related state court collection action remained pending fell within the broad scope of practices prohibited by the Fair Debt Collection Practices Act (FDCPA).
The Court reversed the dismissal of her claims and remanded the case for further proceedings.
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