My question involves collection proceedings in the State of: Kalifornia
The "story": Took out a few student loans for grad school in 1993 totaling less than $20,000. I ended up defaulting when I lost a business in 1996. Defaulted again in 2001 when I went through a divorce. In 2002 I tried to start making payments again but could not determine who to pay as I was receiving "requests" for payment from two different collection agencies. Both agencies were incredibly rude to me and I eventually gave up trying to work with them. I was contacted again in 2006 by a collection agency who demanded payments of $750 from me - I was working in the social services field and could not afford those types of payments - I could barely afford $200 per month as a single dad of 3 kids. I filed a complaint with the government regarding that collection agency and have not heard from anyone since.
Until now... but back up a few months first - I now have a good job - I left the social services field and now work in management. I started making student loan payments in the amount of $300 a few months ago to the US Dept of Education after I saw my loan amount totaling over $35,000. I could pay more but I am also paying $200 per month in back state taxes. I will be finished with my back taxes in February of 2009, at which time the plan is to apply that $200 per month to my student loan, thus making payments of $500 per month.
Last month I get a threatening letter (and the subsequent threatening phone calls at work) from another collection agency demanding payment for a loan amount in excess of $46,000!!!!! I immediately faxed off a letter requesting no contact at work.
I have now received a request to complete a Financial Disclosure Statement to pay 15% of my disposable pay. I am now married with 4 children and cannot afford to pay 15% of my disposable pay! I can afford the $500 per month after I finish paying my back taxes.
A few questions:
1 - Am I really on the hook for in excess of $46,000?
2 - I don't want to disclose who my employer is b/c it is frowned upon to have them contacted for collections. (yes, I know the legal stuff, blah blah blah - it is more about protecting my reputation so I can move up in the company). Do I have to disclose who I work for?
3 - What are my rights if I do not agree with what they think I should pay?
4 - My wife is self-employed. She makes a lot of money but also has a lot of write-offs - so at the end of the year, it doesn't look like she makes a whole lot. How will this effect how they look at what I can afford to pay back?
5 - Should I make this month's "self-payment" or should I wait until they determine how much I should pay?
In the final analysis, I really really really want to pay off my loan and get out of debt. I just want to do it in a way I can afford to do so without jeopardizing my ability to take care of my family - oh, and we are expecting child #5 in January (blended family).
Thanks!
Steven

