Weltman, Weinberg, Reis

You say private student loan, does that mean it is not a government loan? Government loans can get really nasty, BUT they have a ton of programs to help you pay it back...if you are in default you can contact the loan people directly and get the loan deferred or something...plus I happen to know the student loan people will accept payments based on your finances, I myself had payments of like 10 bucks a month because that was all I could afford.

It's not government loans. They are private loans by private companies.

Ok is the amount they are asking for actually the amount of the loan, or close to it? You can check and see if they are collecting on behalf of the original creditor or if the debt has been sold. How old is this? When did you default on this loan?

You have some options. If it is old, it may be past SOL and they won't be able to sue, or if they do you can claim SOL defense. Also if it is old it is likely with a junk debt buyer and they would have a hard time, more then likely in validating the debt.

Now if it comes right down to paying it, you can sit down and work out a budget. You mentioned you have $400 each month extra...you don't want to offer it all because what about emergencies? If you know they are collecting correctly and legally then send them a certified letter with your payment proposal. Explain your financial situation and make your offer. State that should they sue, you will force them to prove up every aspect of the debt in court and you will also show the judge your financial status and the court will either approve and set your payment plan as you initially have it or may even it lower. Also the judge might not appreciate the fact they refused your payment offers.

Even if they turn it down, send the letter (certified return receipt) ever month or so...that way you can show the judge you made every effort and they were being unreasonable.

But as I said, first make sure this debt is not out of SOL and they are the right ones collecting before you even make an offer.

They took me to court, but I did not show up the first time because they forged my signature to say they serviced me. In any case, I was added on to someone's bank account at the end of 2009 and the bank sent me papers 3 months later to let me know that they were trying to garnish the other person's bank account. I ended up calling Legal Aid and the Courts which both told me to file motions against the company. This gave me the opportunity to get my information together. Unfortunately, I had an a--hole judge and she did not want to see my paperwork. She gave them the judgment. Plus, they were trying to charge me 6 times more then what I owed. Well, a few weeks passed and the company claimed they had an overpayment on my account and sent me the difference which they only could have gotten the money from the bank account and that was not much. So, with this said I would say if you need to by all means make sure you have your paper work in order and get as much information about this company as possible. I know that they have had numerous complaints in the state I live in as well as in the state that their headquarters is in (Ohio). They have been sued and shut down in 2 of the 50 states. One thing I forgot to mention is when I went to court the person who was there representing the firm was not even the person who was handling my case. He looked as if he was some mailroom guy that they put a suit on to appear in court. My judge did not even ask him any questions so I was a little leary about this.

Like the others stated on here you don't want to give all of the extra money that you have to them. You have to be careful because I have read a lot about this company making deals with people and then not giving them credit. If you can by all means try to deal with the original creditor(s). You can also look this company up on a website called - ripoffreport.com. Read as much as you can and print out any information that looks like it can help your case. Highlight the important parts in case you are asked about things in court. If you have to and this company or the orginal creditor won't work out a budget then by all means go to court to see if something can be worked out. Also, see if you can get a Mediator first to see if you and the company can reach an agreement before going in front of a magistrate/judge.

Okay, this is want can happen with a judgment. There are two or three different judgments so depending on what these snakes file against you will depend on how things turn out for you. Search the different judgments because I cannot remember what they are called, but I can tell you that they cannot bother you if you are receiving Social Security, Unemployment, and Government Help (social service), etc... In terms of your house I am not sure it would probably depend if it were in both you and your husbands name. Your vehicle - if this is your only means of finding a job and what not then I would say you should be safe, but check just in case. In my case I took my name off of that bank account so the jerks had no way of getting there hands on my money. I don't work right now and was pissed that the judge would allow them to take part of someone else's money just because my name was on the account. If you have to have your name on an account make sure there is a minimal amount in it or if it is yours and your husband make sure that you are a signer only. You might want to check with the bank because I know the bank I was at said once on an account it is joint. Also, if you file income taxes be careful because they will try to garnish those as well and in my state Federal and City taxes cannot be garnished, but State can which is dumb. Okay, so I hope this helps you and good luck. It may take some energy, but at the end it can be worth it. Don't let this company suck you and your family dry, financially and physically. Good luck.