My question involves collection proceedings in the State of: OHIO, though the employers national headquarters is in Texas.
I have an education loan/promissory note that I need to repay to a previous employer. I am not trying to get out of this debt, since I do value the education that I received, but the employer would like me to repay approximately 24k in 1.5 years, with 18 equal payments, and that payment ($1300.00) is entirely too high for me to meet each month. I have tried to negotiate a lower payment through a one time payment of a lesser than full amount that I can get a personal loan for, and by extending the terms to be 36 or 48 months which is a payment that I can manage. Unfortunately they just won't comply, and I am not currently receiving a paycheck, not that I'm not trying, but it is tough starting your own business in the beginning.
The question is - If I send them $500.00 per month until I can afford to pay myself through the business, can they still send me to a collection agency?
I have a feeling the answer is yes, but knowing that collection agencies purchase debt for as low as 10 percent as the actual balance, will the $500.00 keep them happy until I can start making full payments.
Any advice is greatly appreciated. Hope all have a great day.