Should I keep my lawyer for negotiation? Recently defaulted 5 months ago.

Posted by AutomaticFeeling5324@reddit | studentloandefaulters | View on Reddit | 3 comments

Here is the scenario. I recently got hurt on the job possibly not able to return to work and go on permanent disability. I do not know the outcome yet as I am still out of work. I default on my student loan of 150k private, it’s been sold to another bank. I hired a law firm to negotiate, their fee is about 22k equate to 15 percent of the total loan.

I don’t think I qualify for TPD since it private student loan. The worry I have is they may sue and place a lien on the property.

I got no co-signer and don’t care if my credit goes to zero.

I like to get some advice as to what to do?

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DisembarkEmbargo@reddit

You don't need a lawyer to negotiate but you would like one to handle your calls that you have one. If I could go back I would have paid for you so they couldn't call anyone but him. A lawyer would be super helpful if they sue in the future and you could settle with them at that point or continue to not pay.

AutomaticFeeling5324@reddit (OP)

Thank you for the suggestion. I have one now, these guys still call me and claim they never received official notice from my lawyer. I was under the impression that once you get a lawyer they can’t contact the borrower anymore.

Yes I am waiting to see what they want to do. For that large amount of debt I think they may go to court for it.

I was under the impression that once you get a lawyer they can’t contact the borrower anymore.

Based on what I remember from CFPB I think that is true. You could send a letter yourself to state that they should only contact your lawyer: https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-when-a-debt-collector-contacts-me-en-1695/

You could also sue them if they harass you too much! But I can't remember the max. limit.