Legal Question in Credit and Debt Law in California

harassment from Financial Management for collection
My son took out a student loan 1978 or 79 from Student Aid Commission for $12,000.00. Made no payments and it accured to $26,000. Financial Asset Management will settle with him for $16,000. or attach his wages. They won't give him a payment plan except 60 days for whole amount. They call him continuously at work with their threats. What is his legal recourse? He cannot pay the amt. owed and has no resource for borrowing. Can they attach wages? can he claim bankruptcy (which he doesn't want to do)

Asked on 11/12/99, 5:48 pm

Joshua Genser Joshua G. Genser, Attorney at Law

0 users found helpful

0 attorneys agreed

Re: harassment from Financial Management for collection

Your son is in a difficult spot. The Federal Fair

Debt Collection Practices Act, which prohibits some

harassment by collection agencies, doesn't apply to

student loans. Also, student loans are not dischargeable

in bankruptcy. If your son doesn't pay, they will

get a judgment against him and attach his wages.

Frankly, the offer to accept $16,000 is pretty

generous, and he should raise the money any way he

can and pay it. Bankruptcy might be able to help

him manage the payment of the debt, so he should

consult with a bankruptcy attorney if he cannot raise the

$16,000.

Answered on 11/16/99, 4:44 pm

Keywords

Match Any Match All

Country

State

Area of Law