If I am trying to make payments, can I still be sued and have wages garnished?

I have a student loan that has went to a collection agency. I attempted to contact them to set up a payment plan and was told that what I could afford to pay them was inadequate and that I needed to pay more than I can afford each month. They also informed me that even though I will be making payments, they will still make a full attempt to collect the money in full. Is there anything I can do about this because I am trying to repay?

Asked on September 16, 2011 under Bankruptcy Law, West Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The only way you can stop any attempts to collect is to enter into a written and signed agreement with the collection company where you agree to pay so much per month for so long and in return, the collection company will agree to stop the collection process so long as you continue to make your agreed upon payments in a timely manner.

The good thing that you have written is that the collection company has not filed a lawsuit against you for the claimed amount owed. If it does, you will have to file an answer to the complaint to defend yourself and to avoid a default and default judgment. If you actually owe the money, most likely a judgment will be entered against you and the collection company will then try to levy upon your bank accounts and garnish your wages for payment.


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