I borrowed $6103 and defaulted on the loan. With interest and penalties the total came up over $20000. I have paid back $9500 with icome taxes and garnishments. They say i still owe them $14501. I wanted to settle and the said they would settle for a lump sum of $9000 or $120 a month for 9 months and maybe I can refinance or get loan forgiveness. I can’t afford that i have child support of 300 a month and without my disability I could not put food on the table for a family of 3. The garnishment is between $20 and $60 a month. The interest alone is between $50 and $53 a month. Most of the time the payment doesn’t even cover the interest.
How can I get this settled? Is there a way to get forgiveness because I have already paid back over half of the loan? Who can help me? I am also a 70% disabled Vet. Can VA help?”
I have a number of questions I would like to ask you in order to be certain I know the needed detail before I suggest a next best step. Please answer the following questions in the comment section below.
What state are you in?
What type of debt were you sued for?
Who were you sued by?
When were you sued?
When did you last make a regular payment on the debt?
Did you participate in any court process to establish to what extent you are exempt from garnishment?
I would like to help you get to the right solution, but will need answers to these questions and the likely follow up questions first.
Post your answers in the comments section below.
Michael Bovee has worked with financially challenged consumers for the past 17 years and is a recognized expert in his field. Michael founded Consumer Recovery Network (CRN) in 2006. CRN offers debt settlement services and educational resources nationwide. He has served as its president since 2006.
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