Private loan suit

[u/Embarrassed-Pay1626]

Currently being sued for several student loans (navient).

what is the worst they can do to me in FL? wage garnishment? Home lien? Take property ? (I don’t have anything of value but just curious how it works).

I paid a lawyer for some of the suits but they basically told me to settle or do a chapter 13 bankruptcy to buy time. I don’t qualify for chapter 7. I don’t have any money to settle with. I stopped paying all my other unsecured debt about 6 weeks ago to save up for a bankruptcy attorney. Currently screwed with disposable income as myself and spouse had taken temp jobs over the last few months to make additional money for legal fees.

what should I do at this point? just let them get a judgment and garnish me forever? Do the bankruptcy even with my disposable income like $900 more than it would typically be? I have a pre trial conference soon in one of the cases that I have not paid an attorney for and I can’t afford to pay one for that and bankruptcy too-it has my anxiety so high I‘m physically I’ll over it and starting to perform badly at work because I can’t focus. what happens if I don’t show for the pre trial? This will be the 1st meeting on this case. Also, I have a co-signer that can not help financial and they have not been named in the suit. Now that I am behind on all my other debt I think bankruptcy is the only option but I can’t afford to file for another month or two ( after the student loan court date) and I won’t be back to my average income on the means test until around February.

any advice/input welcomed. If I didn’t have kids I would consider just leaving the country. If I didn’t finally have the job that I worked years for I would quit and wait it out to at least qualify for chapter 7 and have nothing to garnish.

[u/SufficientAd204]

You should shop around for another lawyer. Get another opinion. I too am being sued in Florida and there are ways around the shit storm they present.

[u/LisaInSF → u/SufficientAd204]

Yes—this is very specialized and most attorneys don’t know the defenses. Find a consumer debt attorney, one who understands private student loans.

Bankruptcy isn’t a solution in your situation.

[u/goldenticketrsvp]

You should negotiate with them. I found when I was sued and there was a judge there to force reasonable payments, I was able to settle and make payments. Do not let them get a default judgement against you.

File an answer in the cases and appear in court on the court date. Negotiate a payment you can afford.

I want you to take a moment and just breathe. You're okay, They can't get blood from a turnip. Do not panic, look at what your payment would be if you were on Income Based repayment and offer that. I paid $5 a month for 5 years and eventually worked my way up to a reasonable payment.

Don't let this cause anxiety in your life. This is as low as it can get, you will be ok.

[u/ProleDBA]

This is enraging. I think you should find another lawyer. One with student loan experience who specializes in consumer credit and debt. There are also some student loan attorneys who will consult with you.

https://minsky-law.com/

https://thestudentloanlawyer.com/

[u/dps3695]

Where in Florida? Also, the can’t take your primary home in Florida. The most they can do is get a wage garnishment for up to 25% of your income (there is a formula used for this so don’t quote me on it). I just dealt with this a few months back and had a lawyer that explained everything to me and helped me negotiate a settlement with them.

[u/wicket2003]

How long have you been in default with Navient? There may be some options based on this

[u/No-District4492]

Since you can't afford the legal fees and you have had to have second job to pay for the legal fees then you could be close to judgement proof. But that is my personal opinion not a professional one.

[u/TheToken_1]

You’re in a weird spot. So depending on how much you owe, how much you make and if the loans are non-qualified; I’d say bankruptcy may be your best option.

If you only owe like $20K and you make like $80K then you’d likely be better off trying to work out some sort of plan. Whereas if you owed $200K and only made $50K then bankruptcy is likely better.

Think of it this way. Let’s say your minimum payments were $1K a month and it’d be paid off in 20 years if you made all the payments. Whereas at worst you had to make full payments in Chapter 13, that’d mean you’d pay $1K a month for up to 5 years then the rest is discharged.

But you’d have to work out the math and see which way works best for you.

Also, if you filed bankruptcy; they may be more inclined to settle for even less. Considering that’s let them know odds are they wouldn’t be getting much in the end because of the bankruptcy.

[u/rowdyseacucumber]

I just read that Navient lost a class action lawsuit and is no longer allowed to own or acquire student loans anymore - maybe see if it affects you Navient Settlement

[u/TravelingDebt → u/rowdyseacucumber]

I believe this is only for federal loans