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I got sent a letter from a collection agency saying that I owe so much money for student loans.
What will happen if somebody shows up at the door with papers to serve me?

Will I have to respond or will they not be able to do anything other than find a default in court and try to attach my bank account or take something?( not much in there, and dont have anything)

2007-03-18 04:42:36 · 6 answers · asked by Charles R 1 in Business & Finance Credit

BY THE WAY THIS MONEY OWED IS FOR STUDENT LOANS.

I LIVE IN US.

2007-03-18 04:43:06 · update #1

AND I DONT WANT TO MESS AROUND WITH BANKRUPTCY!!

I DONT WANT TO MESS WITH ANY OF THAT STUFF!!

2007-03-18 04:46:41 · update #2

6 answers

yes work out a payment plan

2007-03-18 04:48:35 · answer #1 · answered by Mikee 3 · 0 0

You are not required to respond to them, but as you figured if you don't and just ignore it they will enter a default judgement in court. From there they can garnish your wages, attach your bank account and/or take any government money such as IRS Refunds. They don't have to do that right away, they can wait several years until you are making money to do this and by then several years of interest will have been added. If at all possible try to work out a payment plan with them

If you do get served that person just hands you the papers and leaves they have nothing to do with the case. You can do what you want with the papers.

Since it is a Student Loan Bankruptcy will not help you anyways because they are non-dischargable debts. That is you would still owe them even if you did delcare bankruptcy.

2007-03-18 05:58:12 · answer #2 · answered by OC1999 7 · 0 0

Doubtful that they will actually serve you papers in hand as they don't have to make that effort. Because wether they do or not they can do all sorts of things.

Yes they could take you to court and get a default judgement and someday your wages will be garnished. But regardless you will owe interest on it up to the point that you pay it and by then you will owe way, way more. Often in the loan papers is a line that says that if you default they can actually raise the interest.

But here is the thing. If you graduated or return to it someday in this day and age most any company will check your credit before hiring you. Even if they do not at some point someone will eventually. You might get away with it for years but one day it will bite you in the butt and by that point you will again owe tons more.

Do you not think that thousands of people get student loans and start working and can't pay? The only and best thing you can do it call them and start paying SOMETHING. They would rather get a little bit with a promise to pay a little bit more down the road or nothing.

2007-03-18 05:08:53 · answer #3 · answered by jackson 7 · 0 0

If you ignore the letter more charges will be added & eventually they will come knocking!

If you choose to ignore things, you will either

- be taken to court, the court will most probably make you pay via a payment plan, unless you have the money sitting in the bank. you have to prove you can not pay it back by showing things like wages slips, bills, other credit/loan agreements you have rent/mortgage bills. You will have to fill in something called a 'budget plan' and the courts will state the amount you will have to pay back

- or get bailiffs at the door, they will present you with a court order for them to take goods from your house. The amount they take from your house will total the cost of the loan plus any extra charges. Remember they sell things off at auctions so things will go a lot cheaper than for what you bought them for

What i would advise you to do is to ring the collection agency and ask to be able to pay back in installments, again you may be asked to fill in a budget plan to show how much your incoming/outgoing money is. They can't usually refuse your offer of setting up a payment plan.

To be honest though i know a lot of students who aren't paying back their student loan and haven't been for many years, it depends on how much you owe & how long ago it was.

2007-03-18 04:57:29 · answer #4 · answered by Becci 4 · 0 0

No, no one will show up at your door for defaulted student loans, do not worry about that. The defaulted loan(s) will affect your credit though, so you should call your lender and try to work out a payment arrangement. They can also garnish things like income tax refunds and even paychecks.
Bottom line, don't sweat it.

You also cannot get rid of student loans in bankruptcy court unless you have been out of college/school for at least 7 years.

2007-03-18 04:48:53 · answer #5 · answered by Gman 4 · 0 0

go to citizens advice they will help you with which option to take dont panic

2007-03-18 17:03:47 · answer #6 · answered by TS100N 6 · 0 0

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