Tuition Debt

[nosebleed]

Howdy folk

Well, let me start with a little about myself. I am a struggling 21 year old office worker who makes roughly $700-800 a month (yep, that's it). I currently have a $3000+ debt with a college (tuition) that I attended for a semester (Not going there any longer, obviously) that is rather old. Right now, I am going through many many life-changing events. My parents are very irresponsible (my dad's is the reason I have this debt) and in fact, TOMORROW, I am moving out to roommate with a friend... and right now things are very stressful.

Anyway, the reason I am posting this is because I just received a letter from the collection agency for the debt, and it says that they are "recommending an investigation into your employment, bank accounts, automobile, and any real estate or personal property you may own. If an investigation indicates that you are financially able to pay this obligation, we will give this information to your creditor and proceed with collection activity." Well, this is scary, indeed. I do have a job (as I mentioned above), I don't have a bank account, I don't have a car, and I don't own any real estate (I have no idea what falls under "personal property" that they can take away from me).

I don't know what to do about this, and I don't just want to sit on it and let any problems happen, but right now I have alot going on and I certainly can't pay any of my earnings for the debt, practically everything goes toward my rent and bills. I am just a young, humble person who didn't even want to get involved with anything financially, and I'm trying to get on with my life to make myself better. I just wanted to go to college and I don't even have that! If anyone has any advice for some first steps, I would gladly appreciate it!

-- Sean

[SinkingFast]

You don't have any property that they could attach a lien to, currently. But they could have a lien registered that could prevent you from purchasing property in the future.

Also, you need to check your State's garnishment statutes. They can garnish your wages. You need to know what that % limit or $$ amount is. Where we live, it's 25%.

[nosebleed]

You don't have any property that they could attach a lien to, currently. But they could have a lien registered that could prevent you from purchasing property in the future.

Well, if/when I do get this matter settled and the whole thing is cleared off, would that mean I would be able to purchase property again? Or would I be forever unable to purchase property?

Also, you need to check your State's garnishment statutes. They can garnish your wages. You need to know what that % limit or $$ amount is. Where we live, it's 25%.

For virginia it is:

The maximum part of disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed the lesser of;

1. 25% of disposable earnings for that week, or

2. The amount by which his disposable earnings for that week exceed thirty (30) times the federal minimum wage.

Thanks for the reply

[aa06a47]

That is not alot of debt to be considering bk, even though it is a lot for how much you are currently making. Your young, just getting started. Call the company you owe the money to and see what you can work out payment wise, even if it is 20 / 30 bucks a month. You don't want to start off your financial career this way.

[SinkingFast]

The lien would be recorded at the Court House of the county you live in, but,.............. Some Credit Reporting Agency investigator would eventually find the lien and post it on your Credit Report. Then you would have problems getting credit for purchases.

We had a small lien, $1000, recorded in error on our Credit Report and it was going to stop us from getting a $6000 auto loan.