Legal Question in Credit and Debt Law in Maryland
School loans & judgments
I got an interest free school loan from a private organization set for repayment upon graduation. Since then, my payments have been infrequent and sporatic so they filed a judgment. I filed a motion to vacate the judgment and got a response that says ''The judge has signed the motion to vacate and ordered a hearing.'' Questions: (1) Does that mean there is no judgment right now, at least not until they hear the case? (2) I can consolidate this loan with my others to clear the balance but I am not willing to pay their 10% lawyer fees, do you think they will accept this?
1 Answer from Attorneys
Re: School loans & judgments
Your facts are a little unclear, but this means you get a hearing and a chance to show the judge why the (presumably default) judgment should be vacated and that you have a meritorious defense. So for now there should be no judgment. If you want to work out a payment plan, I think the time to approach the creditor is now, before their lawyer has to show up for the hearing and they accrue even more fees.