loan repayment

[HYperX]

I have a student loan that was being repaid to the State of Michigan by my mother. Recently the state of Michigan change the department that was responsible for the collection of the loan. My mother found this out when she recieved a letter stating that the loan needed to be paid in full or legal action would be taken. I have since spoken to the states collection agency and have told them that I am willing to pay on this loan but am unable to pay the full amount approximately $3,000.00. The have since sent me installment paperwork, that asks for alot of information that I am not comfortable with nor willing to give ie bank name and address, work name and address, spouses information, home and car loan information. My question is am I legally obligated to fill this form out or can I just send the collection agency a monthly installment. I am afraid of wages being garnished if they do not accept the monthly payment plan that I would propose in this paperwork. any help in this matter would be welcomed.

thanks

HyperX

 

[Michael Wechsler]

Understand that you agreed to pay back the loan upon certain terms. You breached that agreement. You should expect that you cannot just dictate the terms as you prefer -- there is a little give and take.

Now that you breached the agreement and didn't pay them back, the creditor wants a little security that they will actually see some money in some timely fashion. I don't think that you can blame them. While you may be uncomfortable, think about how it feels to be out the money you loaned in good faith. If you don't comply with what may be a reasonable settlement then you will have to deal with the consequences. They can garnish your wages and also charge you with the cost of finding your assets... I'm sure that reasonable attorneys fees are also included within costs that are charged to you if you breach the loan agreement...