Legal Question in Credit and Debt Law in Georgia

And? Is this story supposed to mean something?

And what is your question?

You indicate that there were court costs. That implies that suit was filed against you, which means that if a judgment was entered, Arrowood or whoever the judgment creditor is, can now garnish your wages if you are working for someone else or levy on your bank account.

The good news is that this is a private student loan which means that it should be dischargeable in bankruptcy. Get a consult with a bankruptcy attorney if you have a lot of debt.

What you don't indicate, among other things, is how much the debt is. Legally, they do not have to settle at all. And you have to figure any settlement on the whole enchilada, including court costs and pre and post judgment interest on the loan, not just the principal.

So go back to the drawing board. Find out the whole amount owed. Get a consult with a bankruptcy attorney, either with the fine gentlemen listed here (I am not a bankruptcy attorney) or with someone else. Find an attorney who will give a free consult. And just because you have a consult does not mean that you have to file.

Assuming that it does not make sense to do bankruptcy, then you need to figure out how to resolve this debt. Who is the attorney? Some firms in Georgia are difficult and some are better than others. It also depends on who the creditor is. I have experience with Citi, but since they sold to Arrowood, it will be Arrowood that decides and I have no experience with them.

Since I am assuming this is either in litigation or has gone to judgment, see if you have an amount equal to 40% of the whole balance. If not, do you have enough to make a good-sized down payment and will you be able to pay off the rest in 6-12 months?

They will probably balk at 40% and say no. But you have set a floor - its up to them to give you a number. Tell them no and raise your offer to say, 50%. You may have to end up at 60% or 70%. Some creditors are like that and will not take a penny less. There is nothing you can do except file bankruptcy.

As a tip, the more money you can put down up front, the more likely it will be for the creditors to accept your offer.

If you want to do a monthly payment plan, you can, but creditors want you to pay on the whole balance. Payments are usually 1% to 2% of the balance, but some creditors want more. And if you are not sending in enough to cover the interest, then you are wastingyour money. In that case, just file the bankruptcy.

Since you did not ask a question and give enough detail, this is just general information which may or may not apply in your situation. You need to give some more detail if you want better advice.