I have a student loan that defaulted. It had been sent to collections and a lawyer contact me about it threatening me to take me to court. They sent out a consent order saying that I had to make so much money in payments. I sent it back to them saying that I could not pay that. They sent it back and kept revising the amount of money twice, but not for the amount I was saying I could make. Finally on the last consent order they sent, they threaten to garnish my wages if I didn\'t sign the consent order. I just signed it to get out of them garnishing my wages. Now I am finding out that they might not be able to do this. My question is how can I get out of the consent order? I am on a very limited income and am actually considered poverty level. They are asking me for more than half my paycheck. I cannot make these payments, but they are saying they are holding me to this consent order. I am willing to pay my debt, just not the amount on the consent order (that I feel was obtained by threats).
2 Answers from Attorneys
Threats or no, you signed. You had the opportunity to consult with a lawyer at that time. I think you are bound by what you signed. However, you can always threaten to file for bankruptcy and ask them to give you some slack. Go the the bankruptcy court website and fill out the form and send it to them.
First the bad news: You're an adult and responsible for what you sign. Asking lawyers about something you should have shown them before you signed won;t change that. (And I am not sure where you got the idea that student loan lenders can't attach wages as they can do that more easily than most creditors). I'd have to see the order, but odds are that you have stuck yourself with it and reduced your options by signing it.
Depending on what you owe and earn, you may be able to reach better payments in a bankruptcy (usually Chapter 13). That won't help everyone and I'd need all your financial information to evaluate whether that could help or not. And while a Chapter 7 bankruptcy won't get rid of the loan, it may buy you a reprieve and help by eliminating other debt, if you qualify.
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