I just got served with papers to go to court. Apparently my old college is trying to say that I owe the 6 grand and they sold my debt to a collector so know i can't even argue the legitamacy of the debt. I have no money for a lawyer, but I heard if you file for bankrupcy it will at least buy some time. I am not interested in finishing the bnkrupsy, but merely getting to that 7th year so the money will fall off
2007-06-25 03:19:07 · 7 answers · asked by John R 2 in Business & Finance ➔ Personal Finance
Unfortunately, Student Loan debt cannot be removed within a bankruptcy, nor is there a statute of limitations on this type of debt.
You will need to either 1.) show up in court by yourself or 2.) obtain a lawyer. You may be able to obtain a lawyer pro bono, or one that deals with these cases fairly cheaply.
However, if you decide to represent yourself, I would state that you would like to pay the debt and set-up a payment plan. Keep in mind, that unless you have legitimate logs that you have taken showing that you have attempted to set-up a reasonable payment plan with the collector, the judge may not allow you the option to set-up the payment plan.
If a judgement is entered against you, that doesn't necessarily mean that they'll garnish your wages. It may take them several months to have an order or wage garnishment placed against you. They may also choose to instead freeze your assets and/or any funds in bank accounts under your name.
All in all, I'd say call a lawyer, regardless of if you think you can afford one or not.
2007-06-25 05:32:39 · answer #1 · answered by Ari 3 · 0⤊ 0⤋
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I just got served with papers to go to court. Apparently my old college is trying to say that I owe the 6 grand and they sold my debt to a collector so know i can't even argue the legitamacy of the debt. I have no money for a lawyer, but I heard if you file for bankrupcy it will at least buy some time. I am not interested in finishing the bnkrupsy, but merely getting to that 7th year so the money will fall off
2014-10-12 20:13:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You most likely don't want to file for bankrupcy over this, it would not be the best immediate decision.
Talk to your college to get the paperwork supporting your claim and try to find a lawyer that you can have an initial consult free of charge. S/he should be able to recommend the best course of action.
Good Luck!
2007-06-25 10:44:30 · answer #3 · answered by Blicka 4 · 0⤊ 0⤋
They changed the rule several years ago. It is now almost impossible to get student loan debt erased in bankruptcy. If you owe it you have to pay it. And what you're talking about won't help either. There is no longer a statute of limitations on student loans. If you don't owe it that's another story. Then get a lawyer to dispute it. You can find one cheap or pro bono through legal aid.
2007-06-25 11:10:44 · answer #4 · answered by Big R 6 · 1⤊ 0⤋
When your college sold your debt to the collection agency, your seven year period started ALL OVER. The seven year period for credit reporting starts at the LAST or most recent activity on the debt.
If the collection agency takes you to court (which is apparently what they are doing), you will have a judgment filed against you to collect what you owe.
It ain't as easy as you seem to think it is.
2007-06-25 13:32:38 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
If you took a college loan out... it's the only loan you cannot file bankruptcy on. You must pay it back. You should be able to find a lawyer that will advise for free.
2007-06-25 10:31:37 · answer #6 · answered by lor 3 · 1⤊ 0⤋
You need to talk to a lawyer. If you can't afford one, find the Legal Aid Society in your community. They give leagal advice for fee. Look in the yellow pages - legal
2007-06-25 10:27:31 · answer #7 · answered by dee 5 · 0⤊ 0⤋