I have an old school loan, through the school, NOT federal loan, and we have not paid it. A lawyers office contacted me this week, to tell me if I don't pay the $3,000 by the end of this month, they will sue me and will garnish my wages. At this point, if I try to settle with the college, are they allowed to work with me, or no, since it is with a lawyer? Any suggestions? I don't have $3,000 to pay in a week, and I don't want to go to court. HELP, please!!!
2006-10-20 07:05:49 · 4 answers · asked by laurie0802 2 in Business & Finance ➔ Personal Finance
Try to settle if you can. If not, try to borrow the money from a family member or close relative, so you don't get sued.
Call up a lawyer who will give you a free consultation and try to find out what you can do.
2006-10-20 07:25:44 · answer #1 · answered by Stefanie K 4 · 0⤊ 0⤋
Contact the lawyer that contacted you and ask if you can work out some kind of payment plan with them. You can not work with the school anymore. If the lawyer will not work with you, then you should probably get a lawyer of your own to do the negotiations. Either that, or borrow the money from some other source.
Usually they will work with you. But if not, when they garnish your wages, they are only allowed to withhold up to 25% of your wages each pay check. It's a lot I know, but it's better than trying to come up with the $3000 up front.
I would suggest contacting that lawyer though, it's never easy to just hand over 25% of your income until the debt is paid off. But at least you know your options. Good luck.
2006-10-20 07:31:36 · answer #2 · answered by Laura 5 · 0⤊ 0⤋
A collection lawyer is no differant then a collection agent, and follows the same laws.
You have no legal obligation to talk to a collection agent, as your debt is to the original creditor. Whether that creditor wish to negotiate with you is up to them, however.
Do not talk directly, but put everything into writing. Send a negotiation letter, and make a reasonable payment plan. You are going to have to offer at least $150 a month or they will not consider it as reasonable.
If they reject this, and you simply can not afford any payment play they offer, then you will have to end up going to court. Note that in many states, the judge can order installment payments, and they will general try to keep it within your budget.
2006-10-21 15:44:05 · answer #3 · answered by Anonymous · 1⤊ 0⤋
ask them for proof of the debt in writing. they cannot legally sue you without first giving that to you. make sure that they provide the original contract that you signed. otherwise the debt might not be valid any longer. the attorney's office will try and bully you so be strong. did they threaten you with legal action? if they did and they have not started the legal process and served you papers yet they are Violating the FDCPA laws and i would sue them. I will help you if you need it let me know.
2006-10-20 11:55:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋