How to Take Care of a Defaulted Student Loan

[CASD]

My question involves collection proceedings in the State of: Idaho

I've been paying $150 per month on my private defaulted loan for a year, mainly to keep NCO happy but in fact it doesn't even pay my interest each month and I've known that but I was trying to keep NCO at bay while I pay-off some medical bills and a private loan so I could then start to pay them the $400+ per month they want
Here at the loan stat's
Principal $12,580
Interest $5,034
Fees $3368
Total $20983
I just talked to them and they told me that in Jan. this will be taken to court and I'll be garnished for 27% of my Gross pay..plus they will add another $5000 to the loan for collection fees

Any idea's how to keep this from happening ? and I can't file BK I did a 7 in 2006 with my Divorce(also this was a crazy year thats how I got defaulted)

I just want to pay them but with a reasonable payment

[hurt neck]

I'm not sure all of the information you are giving, but it's my understanding that if they except your payments, then you are trying to take care of the loan. If the loan people take you to court, then go to court. The judge will see you are trying to pay the loan off. The Judge might even help you out a little. If you don't attend the court procedings you will loose by default.

[Betty3]

There may be no way to keep them from taking you to court unless you can (before the court date) contact them & set up a payment plan agreeable/acceptable to them & you both. If you do set up a payment plan, be sure to get it in writing.

As the previous poster noted, if they summon you to court & you don't go, they will get a default judgment against you.

[CASD]

NCO is out of State... Will the court be in my state where I can attend it or ??

[Rosalynn200]

The Fair Debt Collection Practices Act requires that any suit brought against you for a debt be in the state where you reside or where the contract was made. The Due Process Clause requires minimal contacts so you most likely will (if you are) be sued in Idaho unless you have a business and/or frequently travel to the state (if it is not Idaho) where the contract was made and you are served with a summons.

[CASD]

Thanks ! hopefully they are only trying to get more money with threats , Which they will get but later next year after I pay off the other bills.. I'm hoping to just make them a deal/offer, they already offered a cash deal of $8,000 to be paid in full but I don't have the resources to come up with that offer in the 24 hours that they offered plus it's pretty hard to get a loan with they hammer your credit,, Oh well "Life"

[Rosalynn200]

Whether you settle in or out of court, make sure you get the original promissory note back marked "settled in full." If you are sued, though, you should really consult an attorney in your area.