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Wednesday, June 16, 2010
Calling all California Consumer Debt/Student Loan Lawyers
If you or someone you know is an attorney in California that works with student loans/consumer debt/advcocacy please have them write to studentloanrescue@gmail.com. I may be interested in profiling you on the website or just getting some info.
Please note, most attorneys will help you file for bankruptcy if you qualify. I am looking for someone a bit beyond that, someone who knows a bit more about consumer rights and advocacy, specifically what is legal/illegal for student loan collection companies to do. Someone who will negotiate with the student loan company is even better!
Thanks!
Please note, most attorneys will help you file for bankruptcy if you qualify. I am looking for someone a bit beyond that, someone who knows a bit more about consumer rights and advocacy, specifically what is legal/illegal for student loan collection companies to do. Someone who will negotiate with the student loan company is even better!
Thanks!
You can file for Bankruptcy in some cases!
It is a well known fact that people with student loans cannot file for bankruptcy, however that is not always true. There are 3 very difficult conditions one must be able to meet.
1)Unable to pay both now and in the future
2) Significant effort demonstrated to make payments
3) Undue hardship
Let's start with 1).
This reason alone will qualify most recent grads. Although the economy does suck now, experts have it that it will improve, and although now you can't afford to pay a penny, you may be making a pretty penny in the future, and be able to afford your student loans and more. They will compare the going salary in your field to what your student loans are now. Since average income for degreed individuals can be about 30-40,000 depending on the field. Even if you have $200,000 in debt you probably won't be excused. And this is definitely the case, if you studied in sciences/mathematics (eg., engineers, doctors, nurses, etc). Maybe if you're a teacher you can squeeze by on this rule? Who knows. If you aren't in one of the above categories , keep reading
2) The easiest.
What do you own? Are you sending your kids to private school, living in a 5,000 sq ft house, driving a Porsche, Hummer and a Mercedes, dining at Flemings' on the weekend? Cut out these expenses, and go to public school like the rest of us, rent a cheap foreclosed house, drive a Toyota (they are cheap nowadays), and eat food from the grocery store, dude, like the rest of us! You will then be surprised at how much you can afford IN ADDITION TO your student loans. On the contrary if you happen to be living in a shelter, riding your bike to work, and eating at the soup kitchen, and throwing all of your income into your loans, you may have a fighting chance. Really and simply, as long as you aren't vacationing and dedicating a significant portion of your income to "entertainment related expenses" and, if you are unemployed can provide proof of the gazillions of resumes you've sent out (thank God GMAIL saves everthing you send), you may very well get by on this one.
3) Now this can go easy or hard depending on your position. If you are a single mom, with 2 kids and a special needs baby who decided to take out 6 digits of student loans to finance your degree you are definitely experiencing some undue hardship. On the contrary, if like most recent grades, you live with your parents, are unmarried, have no kids or husband, or other dependents and have no other source of debt, this may prove difficult. Yes, other debt can help you out here. If you like the other Americans who are currently living in bailout heaven but an expensive house or a boob job on credit than you might get that discharged, and not an a well-earned education, than you may get that debt discharged, which still leaves your student debt, but at least some is gone. Mental and physical disabilities can help alot here---not to be insensitive, but it's the truth. If you haven't been able to keep a job because of depression or other debilitating circumstance, mental or physical and can provide proof, doctor's visits' etc you may be ok. If you have a terminal illness, definetely this will work in your favor. Again , I am not trying to be insensitive as these are bleak circumstances. I'd take my current situation with student loan debt, before this, but I just thought I'd mention it. In these cases, several student loan companies, and maybe even private ones have discharge or assistance clauses for those with disability or death.
Extenuating Circumstances?
Cosigner? If you have a cosigner, you can take all of 1, 2 and 3 and ask if your cosigner meets the same set of circumstances. If your cosigner signed on the dotted line, specifically for a student loan, they are just as responsible to pay as you. So, if they don't meet 1, 2 or 3 than forget it, because the loan company will just go after them (this is assuming you have already asked your cosigner for support).
What do you own? The bankruptcy court will consider your assets, yes that means everything you own. If you own a house, car, boat, 2 houses, 2 cars, 2 boats, whatever? And if they can determine you don't need one of those things and could pay if you sold it, then kiss bankrupcty goodbye. That is why you can't drive a hummer, live in a mansion, etc., and complain about debt.
We've all remember, Latrell Spreewell making 12 mill a year saying he can't feed his family, and we all said if he would just alter his lavish lifestyle he could afford it, well, my dear, though we are talking about a lot less money, bankrupcty court will say the same to you should you own more than the average bear.
So if this sounds like something you can bargain for. Check for a consumer debt lawyer in your locale. Give them a call. Often, cosultations are free. Some other extenuating circumstances to consider are the trend and bias of the court that would be taking this trial. Judges do have bias. A judge who is a former debt prosecutor (happens to be a judge in Riverside bankruptcy court, ha!) will not have as much sympathy as a former consumer rights lawyer. Your local lawyer, if they are good, should be well connected, and know this information or be able and willing to find out. If they don't, call the next guy. Try to stick with a lawyer who has worked with student loan debt specificallt and knows the ins and out, as student loans are a very specialized form of debt.
To find a lawyer, google to find your local state bar association.For example, California's Website is www.calbar.ca.gov, and was the first result. Here you can check if a lawyer's been disciplined, how long they've been in practice, if they went to a school where you can pay for your degree (University of Spoiled Children)j/k, and other little ditties you may want to know.
That's all for now kiddos. I hope this helps someone.
1)Unable to pay both now and in the future
2) Significant effort demonstrated to make payments
3) Undue hardship
Let's start with 1).
This reason alone will qualify most recent grads. Although the economy does suck now, experts have it that it will improve, and although now you can't afford to pay a penny, you may be making a pretty penny in the future, and be able to afford your student loans and more. They will compare the going salary in your field to what your student loans are now. Since average income for degreed individuals can be about 30-40,000 depending on the field. Even if you have $200,000 in debt you probably won't be excused. And this is definitely the case, if you studied in sciences/mathematics (eg., engineers, doctors, nurses, etc). Maybe if you're a teacher you can squeeze by on this rule? Who knows. If you aren't in one of the above categories , keep reading
2) The easiest.
What do you own? Are you sending your kids to private school, living in a 5,000 sq ft house, driving a Porsche, Hummer and a Mercedes, dining at Flemings' on the weekend? Cut out these expenses, and go to public school like the rest of us, rent a cheap foreclosed house, drive a Toyota (they are cheap nowadays), and eat food from the grocery store, dude, like the rest of us! You will then be surprised at how much you can afford IN ADDITION TO your student loans. On the contrary if you happen to be living in a shelter, riding your bike to work, and eating at the soup kitchen, and throwing all of your income into your loans, you may have a fighting chance. Really and simply, as long as you aren't vacationing and dedicating a significant portion of your income to "entertainment related expenses" and, if you are unemployed can provide proof of the gazillions of resumes you've sent out (thank God GMAIL saves everthing you send), you may very well get by on this one.
3) Now this can go easy or hard depending on your position. If you are a single mom, with 2 kids and a special needs baby who decided to take out 6 digits of student loans to finance your degree you are definitely experiencing some undue hardship. On the contrary, if like most recent grades, you live with your parents, are unmarried, have no kids or husband, or other dependents and have no other source of debt, this may prove difficult. Yes, other debt can help you out here. If you like the other Americans who are currently living in bailout heaven but an expensive house or a boob job on credit than you might get that discharged, and not an a well-earned education, than you may get that debt discharged, which still leaves your student debt, but at least some is gone. Mental and physical disabilities can help alot here---not to be insensitive, but it's the truth. If you haven't been able to keep a job because of depression or other debilitating circumstance, mental or physical and can provide proof, doctor's visits' etc you may be ok. If you have a terminal illness, definetely this will work in your favor. Again , I am not trying to be insensitive as these are bleak circumstances. I'd take my current situation with student loan debt, before this, but I just thought I'd mention it. In these cases, several student loan companies, and maybe even private ones have discharge or assistance clauses for those with disability or death.
Extenuating Circumstances?
Cosigner? If you have a cosigner, you can take all of 1, 2 and 3 and ask if your cosigner meets the same set of circumstances. If your cosigner signed on the dotted line, specifically for a student loan, they are just as responsible to pay as you. So, if they don't meet 1, 2 or 3 than forget it, because the loan company will just go after them (this is assuming you have already asked your cosigner for support).
What do you own? The bankruptcy court will consider your assets, yes that means everything you own. If you own a house, car, boat, 2 houses, 2 cars, 2 boats, whatever? And if they can determine you don't need one of those things and could pay if you sold it, then kiss bankrupcty goodbye. That is why you can't drive a hummer, live in a mansion, etc., and complain about debt.
We've all remember, Latrell Spreewell making 12 mill a year saying he can't feed his family, and we all said if he would just alter his lavish lifestyle he could afford it, well, my dear, though we are talking about a lot less money, bankrupcty court will say the same to you should you own more than the average bear.
So if this sounds like something you can bargain for. Check for a consumer debt lawyer in your locale. Give them a call. Often, cosultations are free. Some other extenuating circumstances to consider are the trend and bias of the court that would be taking this trial. Judges do have bias. A judge who is a former debt prosecutor (happens to be a judge in Riverside bankruptcy court, ha!) will not have as much sympathy as a former consumer rights lawyer. Your local lawyer, if they are good, should be well connected, and know this information or be able and willing to find out. If they don't, call the next guy. Try to stick with a lawyer who has worked with student loan debt specificallt and knows the ins and out, as student loans are a very specialized form of debt.
To find a lawyer, google to find your local state bar association.For example, California's Website is www.calbar.ca.gov, and was the first result. Here you can check if a lawyer's been disciplined, how long they've been in practice, if they went to a school where you can pay for your degree (University of Spoiled Children)j/k, and other little ditties you may want to know.
That's all for now kiddos. I hope this helps someone.
When All We Have is Taken...
is a great song by Edison Glass.
But, in this case what I am referring to is when you've tried everything out there, and you can't seem to get any luck with renegotiating some aspect of your loans with the student loan company. This means, you have made at least one attempt in writing or you have had such bad service on the phone you can't even get an address to write to (Believe me, this does happen).
My first attempt was actually step 1, though I recommend writing the company itself first if possible.
Step 1) File a complaint with the Better Business Bureau. They are not regulatory, meaning they cannot enforce any settlement, but they will negotiate back and forth, and even suggest how to approach the settlement. This was successful in getting a temporary reduction payment, though not nearly anything helpful. It is good for a first step effort.
Step 2) File a complaint with the Federal Trade Commission. After doing so, you may feel completely useless and unhelped, but rest assured, the power of the FTC is in numbers, and when enough people have filed a complaint against your specific lender, then you are on to some serious progress. Once the complaints reach a certain amount the FTC will investigate and then start a class action lawsuit against the company, which they likely will find something if they are investigating (I got this scoop from a federal trade employee). So when you call, be prepared for to give your name, phone number, company you are filing a complaint against (their contact info if you have it), and the reason for the complaint. In my case, it was breach of contract or failure to cooperate in negotiating a settlement. This is because my promisorry note states (as yours likely does) that in the event of difficulty paying, they will assist you in an alternate repayment plan, to which I have been repeatedly told I can't, until I tried step 1.
And most importantly, DON'T wait until your loan is in default, it looks bad, once you anticipate or have the slightest hint of evidence you won't be able to make a payment, contact the loan company to ask what options are available, and then follow steps 1 and 2. Always in writing, what the company tells you over the phone doesn't matter.
But, in this case what I am referring to is when you've tried everything out there, and you can't seem to get any luck with renegotiating some aspect of your loans with the student loan company. This means, you have made at least one attempt in writing or you have had such bad service on the phone you can't even get an address to write to (Believe me, this does happen).
My first attempt was actually step 1, though I recommend writing the company itself first if possible.
Step 1) File a complaint with the Better Business Bureau. They are not regulatory, meaning they cannot enforce any settlement, but they will negotiate back and forth, and even suggest how to approach the settlement. This was successful in getting a temporary reduction payment, though not nearly anything helpful. It is good for a first step effort.
Step 2) File a complaint with the Federal Trade Commission. After doing so, you may feel completely useless and unhelped, but rest assured, the power of the FTC is in numbers, and when enough people have filed a complaint against your specific lender, then you are on to some serious progress. Once the complaints reach a certain amount the FTC will investigate and then start a class action lawsuit against the company, which they likely will find something if they are investigating (I got this scoop from a federal trade employee). So when you call, be prepared for to give your name, phone number, company you are filing a complaint against (their contact info if you have it), and the reason for the complaint. In my case, it was breach of contract or failure to cooperate in negotiating a settlement. This is because my promisorry note states (as yours likely does) that in the event of difficulty paying, they will assist you in an alternate repayment plan, to which I have been repeatedly told I can't, until I tried step 1.
And most importantly, DON'T wait until your loan is in default, it looks bad, once you anticipate or have the slightest hint of evidence you won't be able to make a payment, contact the loan company to ask what options are available, and then follow steps 1 and 2. Always in writing, what the company tells you over the phone doesn't matter.
How to Stop Collection Calls
Most companies use a third party company for your collection calls. In most cases you can detect this because the companies will have a separate number.
If your student loan service is actually using a third party company (anyone other than the owner or the loan), you can make collection calls stop by requesting so, IN WRITING. I have recently discovered that although phone calls are supposedly recorded for customer satisfication, most representatives can indeed get away with everything and anything they want on the phone. However, in writing they cannot. The best way to do this is by a guaranteed USPS letter or if that is not possible (ex., if the company has a PO Box or won't sign to a Delivery Confirmation), then by Fax, with proof that the fax went through (can easily be obtained by printing a confirmation report by the fax). Keep this in case the company says they never received your letter.
All the letter needs to say is stop the collection calls effectively immediately, make sure there is a date, your loan account number and signature.
Any further collection call action, and you may very well have yourself a lawsuit in your favor, provided as mentioned above, the calls are from a third party.
ALSO NOTE: If you have a cosigner, they can and likely will begin calling for them. So have your cosigner sign the letter or send in one of his/her own. I know this from experience!
If your student loan service is actually using a third party company (anyone other than the owner or the loan), you can make collection calls stop by requesting so, IN WRITING. I have recently discovered that although phone calls are supposedly recorded for customer satisfication, most representatives can indeed get away with everything and anything they want on the phone. However, in writing they cannot. The best way to do this is by a guaranteed USPS letter or if that is not possible (ex., if the company has a PO Box or won't sign to a Delivery Confirmation), then by Fax, with proof that the fax went through (can easily be obtained by printing a confirmation report by the fax). Keep this in case the company says they never received your letter.
All the letter needs to say is stop the collection calls effectively immediately, make sure there is a date, your loan account number and signature.
Any further collection call action, and you may very well have yourself a lawsuit in your favor, provided as mentioned above, the calls are from a third party.
ALSO NOTE: If you have a cosigner, they can and likely will begin calling for them. So have your cosigner sign the letter or send in one of his/her own. I know this from experience!
Letter from a disgruntled, student loan borrower
Let's set the record straight. I am not saying that I did not make a stupid choice, and that I just want to use all the forbearance and deferment and forgiveness programs I can to make my loans go away.
No!
I want to pay my loans. But in this company, even grads from the #1 university in the world (as I've experienced), have trouble paying off their loans.
If someone can be forgiven for racking up credit for a boob job and a mansion, I daresay someone who worked their little heart out to earn a degree should be given the option for a modified payment plan in the event they have trouble finding a job, and without ridiculous interest!
Students should be accountable to pay what they borrowed, but at some point the interest becomes ridiculous.
If former CEOs with years of experience are finding themselves living on the street, why should a poor, recent graduate be forced to pay loans IMMEDIATELY with no job or other recourse? Day after day on the news we hear about how bad the situation is for recent grads, moreso than any other group, but yet they aren't given any assistance.
As I mentioned, you don't have to make the loans go away (though I won't object if you do), but please help us out a little bit.
On my worst days, I feel that my life would have been better if I never went to college and just got a job at McDonalds. I would've been a manager by now.
No!
I want to pay my loans. But in this company, even grads from the #1 university in the world (as I've experienced), have trouble paying off their loans.
If someone can be forgiven for racking up credit for a boob job and a mansion, I daresay someone who worked their little heart out to earn a degree should be given the option for a modified payment plan in the event they have trouble finding a job, and without ridiculous interest!
Students should be accountable to pay what they borrowed, but at some point the interest becomes ridiculous.
If former CEOs with years of experience are finding themselves living on the street, why should a poor, recent graduate be forced to pay loans IMMEDIATELY with no job or other recourse? Day after day on the news we hear about how bad the situation is for recent grads, moreso than any other group, but yet they aren't given any assistance.
As I mentioned, you don't have to make the loans go away (though I won't object if you do), but please help us out a little bit.
On my worst days, I feel that my life would have been better if I never went to college and just got a job at McDonalds. I would've been a manager by now.
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