A while back I posted about a phantom loan that was in collections, and I didn't know more information...


Here's what I know now. I'd appreciate any assistance...

In 2004, federal loans were consolidated and rehabbed through AES. AES also held my private loans at that time.

When the federal loans were consolidated, the $$ was taken through direct debit. (the federal loans are rehabilitated and almost paid off...) Gate loans were not, and no attempt was made to collect them. I honestly didn't even know they weren't a part of the package deal...

Fast forward to Nov. of 06, these loans were send from the bank to an attorneys office (Zwicker and Associates), who sent it to litigation.

I talked to Zwicker today, who said they're pursuing litigation for $7800, or I can stop the litigation by giving them a lump sum of $4600.

I don't have the $$ right now, nor can I afford the litigation.

Do I have any options here? Furthermore, how do I know that paying the lump sum will end all this? Is the lump sum a fair deal? Can I get a better deal?

I suppose, what i'm asking, is what are my rights? What are my choices, what is my defense?

I mean i'm not 'that' guy. I would have been paying these things all along if I had the oppurtunity.

anyone? please?

You have been posting about these loans since December of 2004 and you havent done anything about them yet?? If you don't settle, they will sue and get a judgement against you.

For what it's worth I am facing similar. The collection agency is trying to make a commission off of the amount, which is why they are making threats (I talked to a Greenpath debt/financial planning advisor for a free consultation and she told me the skinny about why they push so hard for down payments). For me, they were asking 25 percent down, and then they knocked it down to 10 percent. I still can't afford it.

My situation is a little different because I just started rehab this month on my federal loans to take them out of default. I sent a letter to the CA law firm on my private debt to the effect that if I pay them what they want, I would be subject to garnishment by the federal loans (I finally found provisions under federal law that says that federal student loan garnishment as an administrative garnishment supersedes state law, which means they could win at trial against me, and force me to pay what they want in garnishment only to cause my other loans to go into garnishment). Under federal law, their loans would get less money under garnishment compared to what I agreed with them to pay for montly installments. This oddly enough gives me so leverage, but I don't know if they will still take me to trial. It seems like they would lose out on a higher per month installment, and according to a friend lose out all together because NY law permits only one garnishment at a time (although with this I am not certain because I am not sure if the federal law supersedes all other state law or just those portions in direct conflict such as who gets to garnishment).

I don't know if you can somehow write a letter to them saying something similar, or whether it will work? I also don't know the state law where you are. I know what I am arguing legally speaking is sound, but that doesn't mean the other side will do anything mroe than continue to play hardball with me, and your situation is different because you aren't in default so its a tougher argument to make.

Also, I have learned some other things. ie, answer the complaint, because as I have been told, don't be so afraid of the judicial process that you forfeit whatever remaining rights you do have. Sorry I can't be more helpful. I am still new to all of this. I am not even certain what will happen with my own efforts.

Yeah. I guess I have. I just finally got all of the answers to where these loans came from, why they weren't being paid with my other loans, and how they got to the point they are currently at.

My biggest fear was that these loans were someting that either I was currently paying off, or had been settled. I had been under the impression that these loans were part of the consolidation with AES, since they were holding the loans before the consolidation, and had said nothing to the contrary during the consolidation. Not to mention, there was absolutly NO effort to collect on these. Not until they were in litigation, apparently.

~$5000 is a huge sum of money to me right now. Paying that blindly hasn't been an option for me at all since this fiasco has began.

Hell, paying $5000 at once is not, and has not, been an option for me since I started digging myself out of my credit hell. It almost appears that the closer I get to fixing all my mistakes, the harder it gets to keep my head above water.

All I want is an oppurtunity to pay these off monthly. I haven't missed a payment on ANYTHING since 2001. But since I F'ed up a bunch of times prior to that, I don't get chances anymore. It isn't right.

I don't have the $5000. They tell me to take out a loan. The banks won't give me a loan because of my credit score. What should I do?

I need help. Does anyone have any ideas? Is there ANYTHING I can do at this point?

They freeze my accounts, and all my hard work goes to shit. All of my perfect monthly payments, credit repair and car loans will all just go back to being missed and late.

I've worked too hard to get where I am.

just wanted to give you guys an update.

I found a way to get the $$, got a settlement letter with everything I wanted in it, and wired the $$ over to them today.

It's done. Thank Christ.