My wife went to a private college back in 2007 here in southern Ohio and as a result accumulated student loan debts. To our knowledge, all of her loans with that school were consolidated and are being paid on every month. However, we are just learning that she has 2500 dollars in unpaid tuition that wasn't in the form of a loan. The college sold this debt to a collection agency and they are saying that many attempts had been made to contact her over the past 7 years. We move around and change numbers a lot, so it's reasonable to assume that we would have missed them trying to contact us. I talked to them to try to work something out and they are saying what I'm offering is unacceptable and that they are going to garnish her wages. How can we stop this? IS there a statute of limitations?
At the time she signed that promissory note, the statute of limitations for a written promise to pay was 15 years. It has since been shortened.
Unpaid tuition, unlike student loan debt, can be discharged in bankruptcy, however.
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
The school will have to file a law suit before they can garnish your wife's wages. If your wife files bankruptcy the debt will be able to be discharged and removed. The statute of limitations when the debt was incurred was 15 years, however the statute of limitations was shortened to 8 years. The school will need to file a law suite shortly in order to attempt to garnish wages. Additionally, reasonable you may have defenses to the claims, but they are not able to be determined at this time. Please attempt to sit down with an attorney to fully go over your defenses.
Who is the collector? Is it a third party collector that purchased your student loan? If that is the case, you are not without hope. If it is a third party collector, do they have the promissory note? Do they have any paperwork with your signature on it? Just like the mortgage mess, some student loan buyers can't back their claims in Court. Just an out of the box thought about private student loans. If they sue you make them produce the proof of the debt. You might be surprised. You do not need an attorney to gather the timeline of the loan and transfers, but if they can't produce proof to you of the loan you may want to consult with an consumer law attorney.
This answer is general and is not intended to create an attorney client relationhsip and is for informational purposes only.
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