Legal Question in Credit and Debt Law in Tennessee

I owe on a student loan. Van Ru set me up on a payment plan of 50$ a month for nine months, while I waited on an appeal for finacial hardship so my payroll wouldnt be garnished. They didnt get my paperwork in time ,so now they have dismised my payment plan, and are wanting $223.00 by the 16th of Nov. or garnishment will start. They accepted two payments from me. Are they able to do this? I thought once a payment plan was accepted thats it?


Asked on 11/13/10, 8:33 am

1 Answer from Attorneys
Howard R. Peppel Peppel, Gomes & MacIntosh, P.C.

An agreed payment plan is a contract which carries obligations for both parties to the agreement. If one party will not comply with its obligations under such an agreement such as adhering to time schedules, submitting paperwork when required, making the proper amount of payment, etc., the other side can terminate the payment plan if it desires. If you did not submit the required paperwork by the specified date, regardless of the circumstance, the creditor has no obligation to adhere to the payment schedule. As such, the creditor can then demand full payment or take whatever legal measures it desires to collect the debt.

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Answered on 11/18/10, 8:57 am


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