QUESTION
What happens if I defaulted on my student loan and cant pay the new fee?
Asked on Sep 15th, 2011 on Bankruptcy - Georgia
More details to this question:
I defaulted on a student loan. I made payments of $100 and missed two payments. Now they want to garnish my wages for $400 a month or I have to pay $320 willingly. I can't afford either option. I tried to negotiate with them and they were nothing but rude. What should I do? I want to pay them but can only afford $100 a month.
6 ANSWERS
Immigration Attorney serving Salinas, CA
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Law Office of Magnolia Zarraga
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First, unless you've already been sued which means you were served with a summons and you didn't respond or you responded and lost, then they cannot garnish your wages. So most likely they are just trying to intimidate you. Depending on the type of loan you have and your income you may have the option of asking them to review your loan for an income contingent repayment plan. Unfortunately a student loan will hardly ever be discharged in a bankruptcy. So you must continue to pay it, but if you have other debt that you can get rid of in a bankruptcy, it may free up your money so you have more money to pay this student loan off. Make a free consultation with a bankruptcy attorney so you can analyze your different options. Good luck.
Answered on Sep 20th, 2011 at 1:13 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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You could file a chapter 13 and ask for a hardship discharge of student loans but it is uphill battle.
Answered on Sep 19th, 2011 at 2:58 PM
Daniel James Wilson
Student loans are the next financial crisis. As I am sure you know, student loans are non-dischargeable. I am putting a client with massive student loans into a five year Ch 13 plan, but it will only buy her time.
Answered on Sep 19th, 2011 at 1:53 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you are behind payments for your student loan you might consider a chapter 13 payment plan.
Answered on Sep 19th, 2011 at 8:41 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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File a chapter 13. Realize that there may not be a discharge of the debt but you will only force them into a repayment plan for five years max.
Answered on Sep 19th, 2011 at 6:19 AM
Glen Edward Ashman
See a lawyer (you should have done that before getting way behind) and see if you can change the payment schedule using a Chapter 13 bankruptcy.
Answered on Sep 16th, 2011 at 4:06 PM