My sister has a judgement or jugment depending where you are from for 125k. I would like to know how would we go about vacating it and also since they are almost 7 years old comming off in May (the CR said it would be this September and when we verified it they moved it to removal in May of 07 instead) who knows why.

Can this situation be corrected, get the judgment off and rehabilitate the loan?

Please help?

Are these Federal Loans or Private Loans??

Judgements report for 10 years I thought..... Anyways, student loan lenders always renew them.

On what grounds should they be vacated???

In order to get a judgement released to rehab, you have to complete the rehab program. They are extremely picky on this point and will require substantial payments to complete the rehab process. I know with several of my clients in the past, they did require the full 1% payment to rehab on judgement accounts. So she would be looking at 9 pays of $1250/month to qualify, plus additional payments until the judgement is released. Once a judgement is filed, they do not have to offer you "reasonable and affordable" payments as technicially it is no longer a student loan but a judgement account.

Good luck.

If they're federal she needs to plan on repaying them, voluntarily or otherwise. They don't actually even need a judgement in order to place a lien on assets, garnish wages, offset tax refunds, etc. An abministrative law judge can call someone over the phone and inform them of the judgement. What legitimate grounds for vacation?

They Are Ed Fed Loans. Key Bank and insured by the Dep of Ed. She was not served properly. I was looking to vacate the judgement and then having her make a deal with the dep of Ed instead of the collection ageny lawyers that are dealing with the account?

One set of loans from Department of Ed in default no judgement 80k
Another set of loans private access loans key bank in judgement 125k

Both are insured by the departement of Ed.

They are reporting but should come off her credit report in December 06

I know the judgement will stay on for 10 years.

Any Advice.

SL reporting period is a little different than regular loans. When did your sister take out the loans and when did she actually default? Unlike regular debt, the reporting period is not 7 years from the date of first delinquency, but rather the date the loan was returned by the servicer to the guarantor for payment (i.e., default). Then, another 7 year period can start if they are ultimately subrogated by DOE from the guarantor if they still don't get repayment. I'm not sure if the CRAs have this difference built into that line that tells you when the TL will be removed or if they just give you the default answer and you have to figure that one out yourself. That might be why she's getting different dates when it's updated.

Are you sure the Private Access loans are federally-backed loans? I hadn't heard of those as a federally-guaranteed loan, which doesn't mean too much at all, but that might explain why they got a judgment if they're not. If they're not, that changes things considerably (in a good way, really). If they are federally-backed loans, the judgment is sort of irrelevant. Even without it, they can still garnish your wages and take your tax returns. I'm not sure that they can touch your bank account without one, but that's about the only thing. If they're not federally-guaranteed, then they do need the judgment to do all of that.

Hope this helps!! Good luck!!

She won't get it vacated for improper service. They will mail to the last know address and then serve by publication.

Correct to the best of my knowledge.

I was talking tonight to a friend of mine who worked in the legal office associated with the agency I worked for. This office handled filed judgement accounts for several state guarantors for borrowers in Minnesota and Wisconsin. She said knew of one case where the judgement was vacated for improper service. THe judge was sympathic to the borrower even though the borrower had failed to notify the lender of her change of address...something to that effect, she couldnt remeber all the details. However the attorney immediately re-filed the case the case the following day and the borrower was served at her new address. The borrower cried at court but ended up in a deeper mess than what she started with. The guarantor, CSAC later denied a release of judgement for consolidation.

Also keep in mind if you are sucessful in getting a judgement released for rehab or consolidation, the legal and court costs cannot be included in the rehab or consolidation. Those need to be paid in full prior to the release.