[calidre]

I have a collection agency that has forwarded three private student loans to an attorney to move forward with judgment. The background on this is that I used a company to help me consolidate all my student loans about two years ago. I was under the impression that ALL of my loans, federal and private, were included in the consolidation. About six months after I consolidated, I got a letter from a collection agency saying I has these outstanding educational loans. I immediately contacted the company that did my consolidation and they assured me, in writing, that everything had been consolidated and that a "check was mailed to the collection agency on 3/26/06." I figured I didn't need to worry about it at that point.

Then, in April 2007, I received a letter from a different collection agency about these same loans. I called them immediately and said that the loans had been paid back in March 2006 and I sent a letter asking them to send me information on who the original creditor was so that I could clear this up. They did not respond. I also sent an email to the consolidation company and did not get a response.

Last week, I received a letter from an attorney's office about these loans. I immediately called them and explained the situation. I was told to call back on Monday to talk to someone else about it. I did and he was able to give me the information on the original creditor the following day. Again, I emailed the consolidation company and this time they told me that they do not consolidate private loans and that a check would never have been sent to a collection agency, only to an original creditor. I called the new servicing company that is actually holding my loans now and they verified for me that these loans had, in fact, NOT been paid by them.

So, I called the attorney back today, hoping to work out a payment plan of some sort, as I am not trying to get out of paying these loans, I simply thought they were included in my consolidation. He told me that I am "days away from a judgment" and unless I can come up with a several thousand dollar down payment and significant monthly payments they will move forward. I told him that I already pay 30% of my take home pay toward student loans, in addition, of course, to my living expenses and other debts. He has now asked me to provide them with last year's tax returns and proof of all my monthly expenses and debts.

My question is, should I provide this to them? When I told him that right now I can only afford to pay $100/month, he told me I may as well not waste my time asking for a payment plan because they will take it to judgment regardless. So, if they do take me to court, will the fact that I have tried to work out a payment plan count in my favor? If I really have no more than $100/month to pay, can they take more - will I be forced to break my lease and find a cheaper apartment? I have no assets of any kind for them to take. What exactly is the definition of disposable income? Also, will they get the judgment from a court in the state where I currently live or in the state I lived in when I took on the debt? Any advice would be appreciated as I'm supposed to provide this information by tomorrow. Thank you!

[Fighting_the_Deb]

I have a collection agency that has forwarded three private student loans to an attorney to move forward with judgment. The background on this is that I used a company to help me consolidate all my student loans about two years ago. I was under the impression that ALL of my loans, federal and private, were included in the consolidation. About six months after I consolidated, I got a letter from a collection agency saying I has these outstanding educational loans. I immediately contacted the company that did my consolidation and they assured me, in writing, that everything had been consolidated and that a "check was mailed to the collection agency on 3/26/06." I figured I didn't need to worry about it at that point.

Then, in April 2007, I received a letter from a different collection agency about these same loans. I called them immediately and said that the loans had been paid back in March 2006 and I sent a letter asking them to send me information on who the original creditor was so that I could clear this up. They did not respond. I also sent an email to the consolidation company and did not get a response.

Last week, I received a letter from an attorney's office about these loans. I immediately called them and explained the situation. I was told to call back on Monday to talk to someone else about it. I did and he was able to give me the information on the original creditor the following day. Again, I emailed the consolidation company and this time they told me that they do not consolidate private loans and that a check would never have been sent to a collection agency, only to an original creditor. I called the new servicing company that is actually holding my loans now and they verified for me that these loans had, in fact, NOT been paid by them.

So, I called the attorney back today, hoping to work out a payment plan of some sort, as I am not trying to get out of paying these loans, I simply thought they were included in my consolidation. He told me that I am "days away from a judgment" and unless I can come up with a several thousand dollar down payment and significant monthly payments they will move forward. I told him that I already pay 30% of my take home pay toward student loans, in addition, of course, to my living expenses and other debts. He has now asked me to provide them with last year's tax returns and proof of all my monthly expenses and debts.

My question is, should I provide this to them? When I told him that right now I can only afford to pay $100/month, he told me I may as well not waste my time asking for a payment plan because they will take it to judgment regardless. So, if they do take me to court, will the fact that I have tried to work out a payment plan count in my favor? If I really have no more than $100/month to pay, can they take more - will I be forced to break my lease and find a cheaper apartment? I have no assets of any kind for them to take. What exactly is the definition of disposable income? Also, will they get the judgment from a court in the state where I currently live or in the state I lived in when I took on the debt? Any advice would be appreciated as I'm supposed to provide this information by tomorrow. Thank you!

Wow, what a mess! I'm certainly not an expert, but I think the fact that you are working very hard to make amends with definitely work in your favor. Put EVERYTHING in writing, and send it certified mail/return-receipt. Write a letter to the attorney stating how much you can pay and your take home pay and other expenses. If they have already said that what you can pay is not good enough, then leave it at that. If you do end up in court, you may have to provide proof of all your expenses, and your tax returns, and even a working budget to show that are working to avoid getting further into debt, etc. But, in the end, they can't get blood from a turnip. Just don't let them scare you too much. It sounds like you are doing all you can. :)

Good Luck!