How Administrative Wage Garnishment Works After an SBA Loan Default

How Administrative Wage Garnishment Works After an SBA Loan Default

Key Takeaways

  • The U.S. Department of the Treasury can garnish wages through Administrative Wage Garnishment (AWG) without first obtaining a court judgment.
  • You generally have 15 business days from the date your garnishment notice is mailed to request a hearing before garnishment begins.
  • Federal non-tax debt generally does not expire because of a statute of limitations, making it important to address Treasury notices rather than ignore them.
  • Depending on your circumstances, you may have options such as requesting a hearing, establishing a repayment agreement, submitting an Offer in Compromise, or demonstrating financial hardship.

Defaulting on an SBA loan can be be stressful, especially after the debt has been referred to the U.S. Department of the Treasury for collection. Many borrowers are surprised to learn that the federal government has administrative collection tools that do not require filing a lawsuit before taking action. One of the most significant of these tools is Administrative Wage Garnishment (AWG), which allows the government to garnish a portion of your disposable pay under certain circumstances.

Receiving a Treasury notice does not necessarily mean wage garnishment is unavoidable. Depending on your circumstances, you may have the right to request a hearing, establish a repayment agreement, submit an Offer in Compromise, or pursue other administrative resolution options. Acting promptly and understanding the available processes can make a significant difference in how your case moves forward.

This guide explains how Administrative Wage Garnishment works after an SBA loan default, the deadlines you should be aware of, and the administrative options that may be available to help you resolve your federal non-tax debt. Our goal is to provide clear, educational information so you can better understand the collection process and make informed decisions based on your individual circumstances.

For additional resources about Administrative Wage Garnishment, Treasury Offset Program (TOP), SBA loan defaults, and other federal non-tax debt topics, visit https://www.nontaxdebthelp.com/.



SBA & Federal Debt Advisory Services
City: Hutto
Address: 143 Exchange Blvd - Suite 300-41
Website: https://www.nontaxdebthelp.com
Phone: +1-830-205-2884
Email: youradvocate@nontaxdebthelp.com

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