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withdrew from loan forgiveness program. BEING SUED!!!!


stephi13339
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If you signed a prom note, you are bound by its terms. Even if the school was nonprofit you must abide by the terms of the prom note. With only 2 years since signing I think that the SOL for your state has not run out.

So you are stuck with this debt. You can argue discharge if the school closed or did not provide you with a marketable skill. Not easy, it will require an atty but it can be done. Nothing is guaranteed however.

Filing a Chapter 13 BK will force the lender to accept payments as ordered by the court but it will not make this nightmare go away.

A Chapter 7 will only help if you can win an adversary proceeding.

Another difficult task.

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So you are stuck with this debt. You can argue discharge if the school closed or did not provide you with a marketable skill. Not easy, it will require an atty but it can be done. Nothing is guaranteed however.

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Actually, in a situation where the student voluntarily withdraws from the school, you cannot argue either defense. In a closed school situation, the student would have to be enrolled at the school at the time it closed its doors.

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Stephi,

There are a number of options with respect to your case. However, non repayment is not one of those options. You could contact the attorney for a repayment agreement or your could answer the complaint denying the debt due to insufficient information and demanding proof. (You could do both!) At that point the case proceeds through the court and you can settle at any point along the way. However, attorney fees and court costs could mount. The likely outcome is either a repayment agreement or a judgment that will result in a lien against your real estate until settled someday.

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You can buy time by answering the complaint in writing, filed with the court, denying the debt based on lack of info and demand for proof.

Then discovery will begin which can take a month or two generally.

But the further a case progresses, the more costs add up and that makes the plaintiff less likely to settle or will increase the amount they require.

You can always negotiate. Talk to the lawyer and tell him you can settle after filing your taxes. Unless the lawyer is very aggressive he will likely let you agree to a stipulated settlement where you pay it off a few months later. However, do not rely on these negotiations unless you get a signed written settlement BEFORE the time to respond to the complaint. If things drag on, tell the lawyer you will be filing an answer to preserve you rights.

You must file a written answer with the court by the date stated in your summons or you will lose by default. Doing that may give you some leverage in negotiating a settlement.

I really recommend you get a lawyer to help you. However, if you cant afford one, remember this: Be careful what you say as anything you do say including any admission of the debt can be used against you. And get any agreement made, signed and in writing before you can rely on it.

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ick ... no not a sample script. Just don't tell them anything. In fact if you're unsure about saying the wrong thing do everything in writing.

What you should look for in a settlement: Paid in full, drop the suit prior to judgement so you won't have a public record, all tradelines on your CR's reflect "paid in full" and "account closed".

If the attorney refuses to drop the suit and insists on the judgement, then refuse to pay. The damage will be done CR-wise once the judgement is rendered and then it'll be another suit to put on liens, or whatever.

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If you want to settle, the lawyer will draw up the agreement. But it is your responsibility to understand what you are signing. You may want to spend a hundred or so dollars to have your own atty look it over before you agree to sign. In my experience, most lawyers will include a stipulated judgment in these settlements where you agree that judgment will enter against you if you fail to pay as agreed. It will be difficult to talk the lawyer out of this because it is their insurance that you will pay up.

So I would make certain you can definitely make the payments as arranged or you will end up as bad or worse than if you never responded.

Also, make sure the provisions protecting your credit rating are included.

With this debt being a student loan, it cannot be resolved by bankruptcy unless you meet exceptional criteria. I wish you the best.

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Yes and no. Yes they can't touch the house. No they can still touch you, and are you willing to be a SAHM and live with nothing to your name for the rest of your life? It's a really tough position to be in.

Not to stray too far off topic here but if you're getting back $4000 per year in taxes, you're paying in way too much every week. That is assuming DH is working thru a union hall, gets paid weekly when he works, etc. If he's a self-employed or independent job roofer then that's a different story.

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The Homestead exemption is of absolutely no value unless you are filing for bankruptcy protection. Even then, there are certain obligations that bk cannot erase. Therefore, what I would do is answer the complaint seeking more information and demanding proof. After you have done that you should be hearing from the other party in regards to a settlement offer to avoid trial. That is typically how it works. Yes, you could probably work out a home equity loan to avoid a lien. Getting a judgment does not automatically mean bank accounts will be levied or assets seized. The other side has to take further steps to enforce collection. The courts only say "It's okay to go get em tiger!"

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That other 1000 is probably attorney fees and interest.

Sending you checks and papers with your signature on it is pretty damning evidence I'm afraid. That's a ton more evidence than you normally get with most CA's or JDB's.

Not sure what to do... anyone? should she just give a "I cannot confirm nor deny" answer to all the points and wait for the court date and practice "defensive finances"?? I don't like to say when someone is "got" but it looks like this one has their ducks in a row. :(

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It appears that this is a nonprofit private student loan lender who has their act together. You could play defense tactics here but in the long run I doubt it will benefit you. I would still deny anything you can in their complaint but if you have any way of paying this off I would negotiate the best settlement possible. I would try to find an atty here. Even if you have to pay him 750 to 1000, if you can save 2000 or more, he will be worth the money. Make sure you get a good negotiating atty. Good luck.

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the lawyer's fees will strictly depend upon the lawyer. Surely Albany has a legal help phone number that does referrals like the doctors and their "1-800-Find-A-Doc" number

I would do nothing without talking to a lawyer first. If you wait too long to apply for a loan you may not get it, especially if the CR reports a judgement.

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