Like you, my only real big debt is with the Student Loan scam that was pulled on me. It's so big that I'll never be able to repay it. I was depending on the "great paying job" I would get with my education...only to learn that my education closed doors, it didn't open them.
Someone on this site likely will contact you about ways to resolve this matter. I can tell you that you're going to try and do all this WITHOUT going to court. The very short story is that all unsecured debt is very illegal and done outside of the authorization of the corporate charter of lenders. This make their buying and selling of credit debt (as well as granting credit)
ULTRA VIRES (hope I spelled it right) and an act of fraud.
One person already contated me. Yes, you pay $1,300 for an education program and then for what services you want. I was hesitant at first, but to be fair, can you ask anyone to help you beyond a handful of aid without compensating them for their time and trouble? It sounds legitimate. I pushed on the whole student loan issue because (1) I'd not pay for something that ultimately cannot help me, and (2) if they weren't willing to give me a sample of what they could do and answer some questions before money was put down, they likely weren't legit. Heck, most lawyers will give you free advice to help you decide if you should hire them or not.
I think the program that contacted me seems real and legit. I'll PM the contact who got hold of me, but you have to decide if it's for you. I'd like to do it, but the priority for me is to isolate what few assets I have and obscure my identity so the theives at the IRS are impotent to do the creditor's bidding. Then, I'll see about making a move.
Likewise, you may not have any assets to protect, but at the very least, UNDERPAY your taxes by claiming all the deducitons on your W-4 (assuming you're still in that system) so if they want to garnish your tax refund, there's no tax refund to garnish. Just set enough aside so that April 15 doesn't catch you short. Try to NOT keep any money in a bank you don't need to cash your next paycheck. Just in case they've gained garnishment powers over your bank accounts as well.
Good luck dealing with the matter. You are not yet in default because you reaffirmed the debt in 1997, but once you default in 2006, the odds are they will sell the loan off to a collection agency.
Isolate what assets you have. Keep your savings OUT of any bank (just in case). Here is what you do to deal with the debt when it comes due:
1. Tell them honestly that you cannot pay it because you can't afford the payments. You need to exhaust all administrative remedies first. If they can extend your forbearance/deferments, they have not exhausted what they can do (buys you time to prepare too).
2. DO NOT reconsolidate the debt or change the payment plan to Income Contingent. The Income Contingent plan is handy for people who can't afford their debt, but it's like an indefinite leaching. They can require 20% of your disposible income and it never exhausts the administrative remedies.
3. DO NOT deal with them over the phone. Get a cheap P.O. Box (better yet, go to a bookstore and buy
How To Be Invisible to see how to obscure your identity and place of residence) and use that as a mailing address for all correspondence. Do everything IN WRITING. Never discuss anything by telephone.
4. From this point forward, NEVER admit to it being a debt you owe. Always refer to it as "the balance on account xxxxxxx." You are disputing that it's even a debt you lawfully owe, but you don't want to come right out and say that because it will red flag your file.
5. I'd change your e-mail (or get a new account) just for them (not that they can require your e-mail address) or so that you can't be bugged by them that way in your normal e-mail. Change your phone number. If possible, MOVE without giving them your new residence address (again, get the book
How To Be Invisible). You want them powerless to do anything BUT send you nastygrams in the mail.
Good luck in this matter. I'll say more in my PM.
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Originally Posted by mrg
I have just joined the forum, and am interested in information concerning discharge of student loans.
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Anyway, I am posting here because the student loan is my only really huge debt, and this thread has to do with a student loan victory--congrats on that.
Thanks,
Mike G.
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