Hi

I am new to this type of help but at this point welcome any possible suggestions. I was directed here from another board said you all may be able to help. Here's the short version. I have a 17,000 student loan colsolidation debt originally through Merlin loan consolidation that was sold to Wells Fargo about 4 years ago. Up until 3 years ago all was well then lost job and was unable to pay contacted them explained to them the situation they said send us what you can so I did. Needless to say the loan was not current. When I did get a new job it was a 15,000 pay cut so money is still an issue. I filed chapter 7 as embarassed as I was felt like that was the only answer and i believe now that it was. Started paying on loan again. At the end of last year they called me and said they were charging off the loan and not to send payment till I was contacted by collector. So I hear from collector and I make arrangements with them to pay 200.00 a month. She tells me it is not a default and loan will never come out of collections. She says I can only pay on it for 6 months then they want at least 5000. If i had that would gladly give it to them. So I call at the end of six months to say I would still like to make payments lady no longer works there someone else tells me loan has been sent to judgement. Finally get ahold of new person who says I can pay 5000 and make payments or they will send it to judgement and it will stay on credit for up to ten years and they will have rights to any property that I recieve. It seems even though I was paying on it it was not current and that is thier right. I was also told that they will never agree to take the loan out of collections nor do they owe me any respomse as far as reciept of payment payment plan or balance left on loan. They will not even send me original copy of loan. The main thing that bothers me is how can a student loan go to judgement? I was under the impression that if I paid it it would come out of default but wells fargo says no. So should I have included this on my chapter 7 because it is not a student loan although it was originally a consolidation? I am just so frustrated I own up to doing the wrong things and have tried to fix them all we all make mistakes but they seem set on sending it. They even asked if I had 401k I could withdraw from to pay them which I think is not a good idea. I live in Tx so they cannot garnish my wages but I would much rather settle this than have it go to judgment. I looked on the fed website and my loans show either paid or paid through consolidation, so i do not think i can apply for rehabbing. Any help at all would be so appriciated.
Thanks so much
:)sharon

Hi Sharon,

Well, unfortunately, I don't have much advice to give because I'm in the exact same boat (I even own about the same amount, 15k).

I, too, have been enormously frustrated. You feel like you try to do the right thing and, yet, it isn't good enough for them. The scary thing is they seem to have enormous power. Wage garnishment, taxes, nonexempt from bankruptcy. I mean, not everyone is a deadbeat.

I live in Arizona and am facing wage garnishment right now. Next week I'm going to seek legal advice.....

So I just wanted to recommend that you educate yourself as much as possible. That's what I'm in the process of doing. Understand your rights and what may happen.

You can email me at jackispenser@yahoo.com if you want to chat further.

Hang in there. There has got to be a light at the end of the tunnel!

Jackie

Sounds like a mess. Who is actually collecting on the loan right now? What CA? And who is the loan holder or guarantee agency? Generally from my experience, judgements are only filed on accounts that are NOT in repayment. Did you know that you can consolidate again?? You can then get it out of collections and back into current standings. http://loanconsolidation.ed.gov/index.shtml