Nashville Bankruptcy Attorneys Clark & Washington Discusses the Offsets for Defaulted Student Loans

    NASHVILLE, TN, May 13, 2015 /24-7PressRelease/ -- If your student loan is deemed to be in default by the government, it can use the Treasury Offset Program to collect on the amount it is owed. According to the Nashville bankruptcy experts at Clark & Washington, the Offset Program allows the U.S. government to seize federal payments that are due to an individual to pay down a delinquent debt that this individual owes another federal agency. An example of a federal payment is a tax refund.

The law requires that the person, whose federal payment is being seized, must be notified before any funds can be claimed. This gives the debtor a chance to take steps to get the loan out of default status or challenge the offset.

You can stop an offset by entering into a repayment plan with the loan provider. You can also set up a deferment or forbearance plan with them. If you think the offset is in error, you can stop it by challenging it. The offset may be in error if you have actually paid off the loan or it has already been discharged in a bankruptcy filing. Other reasons to challenge an offset include permanent disability, false certification, or forgery of the loan documents.

If you successfully challenge an offset after your federal payment has been seized, the government must refund the full amount that was seized.

Don't file for bankruptcy in Nashville without the expert guidance of the bankruptcy attorneys at Clark & Washington. You will find their experience and sage advice to be especially useful in successfully maneuvering the labyrinth of the bankruptcy court.

To learn more, 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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