Jefferson Capital (Sallie Mae) put me on a hardship hold and won’t let me settle
Posted by throwawaySTVUUHT224@reddit | studentloandefaulters | View on Reddit | 12 comments
I owe a total of $148k split into 3 loans. And now I’m being sued. The process server submitted an affidavit stating he handed someone the papers but that was a lie. I called the attorney and asked when I was served so I checked the time and date and got the doorbell footage of a man leaving a paper on the floor when nobody was home. I want to settle. I have access to about $17k but that’s all I have. I own no assets and carry about $64k in other debt. My settlement offer was $80k outright or $36k lump and $3300/month. I can afford neither of us those so asked the attorney to take a look at my financials and make a better offer. She told me they put my account in financial hardship status and at the moment, they are not accepting any negotiation from me. What the heck? I didn’t ask for that. I’ll take it but I really just want to be done with this.
LisaInSF@reddit
Jefferson Capital Systems is a debt buyer — they are not the lender. They allegedly own the loan but must prove ownership. Aside from that issue you may have defenses. So you need to at least consult with a consumer debt defense attorney in your state. You won’t get any kind of reasonable deal by simply calling and offering a small payment or pleading poverty — you have to fight them! Don’t assume that you can’t afford an attorney. You can’t afford to NOT have an attorney in this situation.
In my state (CA) people who end up settling pay around 20-33 percent (+the debt buyer still makes a profit); however, with a good consumer/student loan attorney, you may be able to get a dismissal with no payment.
THROWRASad-Dif@reddit
I did reach out to an attorney and did over an hour long consultation with all the filings of the lawsuit. She said it looked pretty difficult to fight except for perhaps one issue that we would need to serve discovery on. They’re charging me $5k just to draft discovery.
Aggravating_Storm493@reddit
I have to be real with you, this doesn’t sound like a good lawyer / sounds like a lawyer who’s just trying to make take advantage of people in desperate situations.
I’m in the northeast, and the good debt settlement lawyers who actually get results don’t charge nearly that much, most have a flat fee contingent on them getting a result for you. The one lawyer I liked the most, who I’m likely to use once I get a collections notice, said he doesn’t charge for anything until there’s a settlement that’s been signed sealed and delivered. And his rates felt very fair for when the settlement goes through.
So I really don’t think you should be using the lawyer you’re using, you’re gonna end up spending the same amount on a lawyer that would be used on the debt settlement. The other comment has good advice on finding a lawyer. Or see if you have a legal aid that has a debt lawyer on staff, some cities do have a legal aid with debt lawyers on staff.
THROWRASad-Dif@reddit
Ok I’ve reached out to another lawyer and have a consultation today
Aggravating_Storm493@reddit
That’s great. I hope it goes well, and if you don’t mind, I’d love to know how your consult goes. I’m going through it atm, just officially defaulted on Sept 30, so I’m figuring out how to proceed.
Keep strong, pal
THROWRASad-Dif@reddit
Spoke to an attorney who specializes in bankruptcy but said he doesn’t have great results with private. He recommended me to 2 other attorneys so I have another consult set up next week
LisaInSF@reddit
That’s outrageous. Sounds like you talked to someone who doesn’t actually practice consumer debt defense… try finding an attorney who is a member of the Natl Assn of Consumer Attorneys. Also seek out experts on student loan collections cases.
TravelingDebt@reddit
How long were you in default before they sued you and what’s your SOL for your state? I’m just curious because my amount is a little more.
THROWRASad-Dif@reddit
3 years SOL. This year is the third year since my last payment
TravelingDebt@reddit
Dang waited until the last minute. Mine is 5 years, but I’m only at year 2. Mine is still with Sallie Mae though.
SettleBankDebt@reddit
As a debt negotiator you really should hire a debt defense attorney or file an answer to the lawsuit within the allotted time frame if you are (PRO SE) representing yourself. Do not give them an easy win.
Odd-Barnacle-1241@reddit
They did that bc they know if they take you to court they will get nothing. You don’t make enough it sounds like and carry too much other debt so their chances of collecting any substantial amount is zero.