[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR34.24]



[Page 93-94]

 

                           TITLE 34--EDUCATION

 

PART 34_ADMINISTRATIVE WAGE GARNISHMENT--Table of Contents

 

Sec.  34.24  Claim of financial hardship by debtor subject to garnishment.



    (a) You may object to a proposed garnishment on the ground that 

withholding the amount or at the rate stated in the notice of 

garnishment would cause financial hardship to you and your dependents. 

(See Sec.  34.7)

    (b) You may, at any time, object that the amount or the rate of 

withholding which our order specifies your employer must withhold causes 

financial hardship.

    (c)(1) We consider an objection to an outstanding garnishment order 

and provide you an opportunity for a hearing on your objection only 

after the order has been outstanding for at least six months.

    (2) We may provide a hearing in extraordinary circumstances earlier 

than six months if you show in your request for review that your 

financial circumstances have substantially changed after the notice of 

proposed garnishment because of an event such as injury, divorce, or 

catastrophic illness.

    (d)(1) You bear the burden of proving a claim of financial hardship 

by a preponderance of the credible evidence.

    (2) You must prove by credible documentation--

    (i) The amount of the costs incurred by you, your spouse, and any 

dependents, for basic living expenses; and

    (ii) The income available from any source to meet those expenses.

    (e)(1) We consider your claim of financial hardship by comparing--



[[Page 94]]



    (i) The amounts that you prove are being incurred for basic living 

expenses; against

    (ii) The amounts spent for basic living expenses by families of the 

same size and similar income to yours.

    (2) We regard the standards published by the Internal Revenue 

Service under 26 U.S.C. 7122(c)(2) (the ``National Standards'') as 

establishing the average amounts spent for basic living expenses for 

families of the same size as, and with family incomes comparable to, 

your family.

    (3) We accept as reasonable the amount that you prove you incur for 

a type of basic living expense to the extent that the amount does not 

exceed the amount spent for that expense by families of the same size 

and similar income according to the National Standards.

    (4) If you claim for any basic living expense an amount that exceeds 

the amount in the National Standards, you must prove that the amount you 

claim is reasonable and necessary.



(Authority: 31 U.S.C. 3720D)