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I have a student loan that I have been paying for 5 years now. I had told the law firm that I can only pay $500 and they agreed. They had said that if I paid $500 I need not go to court, even if there were summons. It will be paid off by Feb 2011. But I have received summons for the same loan now. The original amount was $6400 and now it is $9500. I called the law firm to ask about the amount, they could not give any reason. I cannot afford a lawyer. What should I do? Should I go to court? Should I continue paying $500? Can somebody help me with how can I reply to the summons?
Hi Sean,
What I understand from your post is that you have been making payments to a law firm, which works for a collection agency. But did they give you a written agreement that if you paid $500, you need not reply to any summons from court? Why would a law firm at all move the court, if you are making regular payments (according to a payment plan agreement). However, now that you have served court summons, you must file an answer to it, as soon as possible. If you do not appear in court, the law firm can bring a default judgment against you, and garnish your wages or your bank accounts.
In case a default judgment is entered on your credit report, the law firm is also likely to add the court cost involved, to the actual debt amount. You can tell the court that you entered into an agreement with the law firm. It will be better if you can produce any paperwork to support your viewpoint. You can also produce a proof of your regular payment of $500 to the law firm (any canceled check will serve the purpose).
court summons for a student loan
Hi Sean,
I agree with rachael. You should file a response to the summons within the due date.
The original amount was $6400 and now it is $9500.
You should also request the court to demand validation of the debt amount, from the law firm. After the issue is settled, you can try to pay more than the minimum amount of $500. If you budget your expenses, I think you will be able to save cash to pay off your debt. It is always best to repay a debt as fast as possible.
summons
received a summons a week ago and they gave me 15 days to answer it. summons is about my credit card which i wasn't able to pay even the mimimum amount. now with my last balance, interests and penalties have already accumulated. i don't know how to reply to court.
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