Legal Question in Credit and Debt Law in Illinois

Default student loans that has been referred for a wage assignment

What can I do to enter into a payment arrangement for a defaulted student loan that has been referred to an attorney for a wage assignment when I am currently working part-time and going to school part-time and a single mother of two small children? I was unable to keep up the $125 payment and take care of my monthly debt so I have not been paying on that loan.

Asked on 1/04/01, 2:01 pm

1 Answer from Attorneys

Tiziana Ventimiglia Tiziana Ventimiglia, Attorney at Law

Re: Default student loans that has been referred for a wage assignment

The first thing you should do is figure out exactly how much you can afford, making a real effort, to pay in a payment plan scenario. then you call the attorney that is handling the collection case regarding your loan and propose your figure. I found that it is a good idea to show a good disposition toward collection attorneys because they deal with all sorts of people who often lie and do not do what they promise. Show him/her that you are serious about repaying your debt and tell him/her that this $$$ is all you can afford without either defaulting on other debts or declaring bankruptcy or whater you situation may be... tell him/her. He/she will then refer you proposal to the client. You really need to try your best not to be in arrear in you payments for any debt.... otherwise you will deal constantly with collection companies and attorneys. You may have to revise certain aspects of your life... but you need to do whatever it takes to keep up your payments if you do not want to face more serious problems down the line. I know that it is difficult, but you can find within your self the strength to manage this situation, just like you are managing to keep going to school and being a single mom with children. Good luck to you.

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Answered on 1/05/01, 9:34 am

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