Can a debt be legally put in and taken out of collections?

Asked about 1 year ago - Chicago, IL

I have a debt with a state university I have been trying to dispute or compromise on for years. It was placed into collections. I was going to work out a settlement with the collection agency, when suddenly the school took it out of collections, changed the amount, and stated I need to pay in full or they will bring a lawsuit against me next month. I have no money to my name. I just want to know if it is legal to take it out of collections, or if I offer to pay anything (i.e. ten dollars) if they have to accept. They said nothing under $300.00 a month would do. I want this settled.

Attorney answers (3)

  1. Matthew Scott Berkus

    Contributor Level 20


    Lawyer agrees

    Answered . Yes, its legal.

  2. Madhu Kalra


    Contributor Level 14

    Answered . Consult with a bankruptcy attorney and discuss your options to resolve or discharge your debts.

    Madhu Kalra Kalra Law Firm 23720 Arlington Avenue, Ste 5 Torrance, Ca 90501 (310) 325-9012 http://www.... more
  3. Robert Charles Russell


    Contributor Level 13

    Answered . This sounds like a private student loan (vs. Sallie Mae, etc) . Yes, they can pull it out of collection. No doubt the entire amount is due now (and earlier). They do not have to accept payments that are not acceptable to them. You might consider Chapter 13 because you can then force them to accept smaller payments. Talk to a bankruptcy attorney.

    My response is general information not intended as legal advice or to create an attorney-client relationship.... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

24,558 answers this week

3,217 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

24,558 answers this week

3,217 attorneys answering