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  1. #1
    Join Date
    Jan 2011
    Posts
    1

    Default Private Student Loans Are in Default, Minimum Payment is Too High

    My question involves collection proceedings in the State of: Illinois

    I have about $100,000 in student loans about $80,000 in private and $17,000 in federal. My question is in regards to the private loans, I stopped paying my loans about 2 years ago after losing my job and then filed for bankruptsy shortly after. Now I am trying to get things back in order but my private student loans were sold to another company and they said they could settle for $37,000. I can not afford to pay the $37,000. Then they said that I could pay $800 a month but interest is being charged every dayand that it basically won't make a difference if I can't make the $35,000 in full (which is basically like throwing money away). I can't even afford the $800 a month. What should I do? Is there any kind of action that I can take? Will they garnish my wages? Please help

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Private Student Loans Are in Default, Minimum Payment is Too High

    Should we infer that your past bankruptcy was under Chapter 7? If you're talking Chapter 13 I would expect that you're still under a repayment plan.

    Only your creditor can tell you what action they will attempt if you do not settle and pay the debt. If they have a judgment, they can engage in whatever garnishment or execution against assets is permitted under the laws of your state.

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