My question involves collection proceedings in the State of: New York
My defaulted students loans were sold to a debt collection agency (no excuses, I take full responsibility). When the collection agency contacted me I tried to set up a payment plan of $700 per month. I was told they would only agree to that plan if I make a down payment of $15,000 (I have more than $150K in loans). They went on to say my only other options were to 1)pay $1,500 per month or 2) they will garnish my wages. I told them payments of $1,500 are not possible; even paying $700 will require sacrifices. They moved forward with the wage garnishment. The amount to be withheld is $275 bi-weekly; which is less than the amount I originally submitted. I reached out to them again to try to make arrangement for $700. They said they were willing to work with me. I submitted all of my financials and they returned with an amount of $1,200 per month Ė once again this is not possible. They said if I donít pay the $1,200 they have no choice but continue with the garnishment. Needless to say Iím baffled. They saw all my info and know that $1,200 is an impossibility. They also know $700 is more than they will recover from a wage garnishment. In addition, any tax refund I may get is only a few hundred dollars and certainly not more than the $700 per month vs. $275 bi-weekly. And in any event, Iím more than willing to submit any refund to them. Of course, I donít want the blemish of a wage garnishment so itís to my advantage if they accept my offer; however, my understanding is that itís to their advantage to accept my offer of what comes to more than $100 per month. Any advice about how to move forward?