Debtor threatened with jail

by jonathon
(rocky point, N.C. USA)

The Attorney generals office in N.C. person said I would be put in jail for 'contempt of court' if I did not fill out every piece of paper they sent to me as a result of a defaulted student loan. The office got a judgment against me but I am indigent, jobless and have no property, car, bank account, credit card, or cash. The letter they sent says they will keep prosecuting me unless I pay $50.00 to the N.C. educational people. Can I make them stop?

Comments for Debtor threatened with jail

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Apr 07, 2010
defaulted student loans
by: Gerri

I am sorry to hear about the problems you're having with your student loans. I would suggest you read the book The Student Loan Scam. It's an eye-opener in terms of what has been going on with a lack of consumer protections on student loans.

When you default on a federally insured student loan, there are additional collection measures that can be taken on these loans, including intercepting your tax refund for example.

I don't know about the contempt of court information you received. It is very unusual to be jailed for non-payment of a debt. But I also know that many people who have been unable to pay their student loans have found themselves in terrible situations.

I would recommend you do three things.

1. Read the book I mentioned above,

2. Set up a free consultation with a bankruptcy attorney. While it is difficult to discharge student loans in bankruptcy, it's not impossible. You need to explore that option.

3. Contact your elected officials - your Senators and or Representative - in Washington and ask for their help. They offer constituent services that may be able to help you get a straight answer to this question.

Good luck and please let us know how this turns out.

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