[sonny2nice]

Ok I'm trying to re-establish myself. I pulled a copy of my credit report and need some advise on a judgement passed on a loan. First off let me explain the loan. In 1999 I took a loan called a Plato Education Loan from Wells Fargo Bank. I made monthly payments on it but after 2 years or so I started finding myself harder and harder to pay the min. every month. Finally the loan went to collections and now it is on my credit report as a judgement. I tried doing some research before asking this question but could not find any real answer to my unique sistuation. Although this was a loan from a private bank "wells fargo" it was used toward my education. And it cleary states on the application PLATO Education Laon. Does that mean the loan is not dischargeable in bankruptcy? Also I am currently making a deceant living and want to pay the loan back but don't know exactly how to do it. There is a levy on my checking account cause of the judgement and I don't want them to garnish my wages. What would be my best way to pursue this matter? If I can settle the debt for a lesser amount it would be great. The loan is for 25K. Please offer some guidance. Thank you

[Miranda]

From what I understand, student loans are not dischargeable in a bankruptcy. Private student loans like you have used to be dischargeable, but under the new bankruptcy law, they are no longer dischargable. It may benefit you to meet with a bankruptcy attorney to be sure. Most bankruptcy attorneys offer a free consultation. Most likely you will have to pay this loan back. If the attorney says that they are not dischargeable, you will need to contact the collections company and try to set up arrangements. They may be jerks, and demand a large sum of money now, or a payment that is extremely high. If so, I would just let them garnish my wages. Most states they are only allowed to garnish 25% of your paycheck.

[ScottGem]

Contact Wells Fargo or the current owner of the debt and offer to negotiate a settlement.