Author Topic: Weltman Weinberg and Reis for Private Student Loans  (Read 614 times)

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MADH1926

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Weltman Weinberg and Reis for Private Student Loans
« on: June 16, 2017 03:04:17 AM »
Thanks for adding me.  I have a previous Chapter 7 Bankruptcy discharged in Jan 2015.

I have $13,000 in private student loans I had with Sallie Mae (now Navient) that were not included in the BK that were received in 2006.  My husband was the cosigner.  Shortly after I discharged I was making payments on the loans, but my husband became incapacitated and unable to work and hasn't done so for 1 1/2 years.  He unfortunately has not been approved for disability.  He has zero income.  I went into default on loans in January 2014.  I earn $43,000 a year and take approximately home 2,200 after taxes each month.  Today we received letters from Weltman, Weinberg (one for each loan.) Both myself and husband received same letters.  This is the first letter saying we have 30 days to dispute.  They have been calling home, work and I have avoided them and they have also called my 85 year old mother in law.  I have had no verbal communication with them. 

I honestly cannot afford any payment or any settlement.  What would be the best course of action?  Call and tell them that? Avoid?  Any idea how long before they will sue?  Any advice or best course of action for this bad situation?  Thank you for your time!   

Clydesmom66

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #1 on: June 16, 2017 03:45:24 AM »
What would be the best course of action?  Call and tell them that? Avoid? 

Send a DV letter within the 30 days.  Calling and telling them you can't afford to pay it back won't help.  They don't care.  Avoiding them MIGHT work. 

What state are you in?  Is the SOL for suit still in play since you defaulted in January?

Any idea how long before they will sue? 

Nope, the crystal ball is out for repairs and the parts are on back order.

I honestly cannot afford any payment or any settlement.

Unfortunately, this law firm doesn't care one bit what you can afford.  If the SOL is still alive they may very well sue you and get a garnishment of your wages.  Unless you live in one of the 8 states that prohibit garnishing wages for civil debts.

Any advice or best course of action for this bad situation? 

If the SOL is about to expire lay low until it does.  If there is quite a bit of time left for suit find out if the contracts have an arbitration agreement.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

MADH1926

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #2 on: June 16, 2017 04:20:08 AM »
Thanks for answering!

I am in Alabama.  So is the statute of limitations from when I defaulted or when the loan was made/signed for? 

Bruno the JDB Killer

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #3 on: June 16, 2017 01:17:55 PM »
Contracts not under seal; actions on account stated and for detention of personal property or conversion: 6 years (A.C. 6-2-34)
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Bobby12

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #4 on: June 16, 2017 02:47:28 PM »
I want to clarify a few points: You took out the loans in 2006 and filed BK in 2015? When you say that the loans weren't included, do you mean that they weren't discharged or you didn't list the loans in your debts? Was the education paid for with private loans or did you use up other forms of financial aid first? i.e. federal loans, grants scholarships, etc. If these are true private loans, they absolutely can be discharged under the right conditions and it has nothing to do with disability. There are many variables here so just start by answering these questions. The conventional wisdom on private loans and BK is changing dramatically. Your BK atty probably told you that there was nothing you could do about them. This is the thinking of the majority of BK attys but they're the lazy ones that aren't willing to look into it.
 

chester474

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #5 on: June 16, 2017 03:33:15 PM »
Good advice from BOBBY 12.

Go back to your bankruptcy lawyer and make him correct his work.

If he charges you file an ethics complaint against that lawyer.

MADH1926

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #6 on: June 16, 2017 05:08:14 PM »
They were included in BK but they weren't discharged.  I did use them to get a degree.

Bruno the JDB Killer

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #7 on: June 16, 2017 10:11:17 PM »
What was your degree, and why are you not able to get employment? I am not being critical, we hear this a lot. I am just curious. I myself pursued a degree I knew would never produce a dime of income, just because I wanted to.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #8 on: June 16, 2017 10:34:01 PM »

Good advice from BOBBY 12.


I'm not sure that she can re-open a Chapter 7 two years after the discharge.

Also, the bankruptcy laws do not allow a new bankruptcy for seven years.

We need a lot more information from the OP to be able to make suggestions, but I don't think it is to the advantage of the OP for us to get ahead when we don't have all the fact.

chester474

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #9 on: June 17, 2017 04:06:21 AM »
In a no-asset bankruptcy case - and most Chapter 7 cases are no-asset cases - an unintentionally omitted creditor can be added.

A no-assets bankrutcy case is where the debtor has no non-exempt assets to be seized by the Trustee in Bankruptcy and divided among the creditors.

The Trustee in Bankruptcy gets paid a percentage of the assets seized and divides up on a pro rate basis among the creditors.

The Trustee in Bankruptcy earns an additional fee for this additional work.

The Trustees, however, are not really interestetd in small cases.

The work involved in seizing the non-exempt assets, valuing and selling and allocating the proceeds - after deducting his fee - among the creditors.

Doing the this Trustee opens himself to liability for mistakes or impropriety and to protect against liability paperwork is generated - adding to the Trustee' s expenses, decreasing his fees for this service.

The local  U. S. Trustee;s job is to watch over the Trustee in Bankrauptcy of each to ensure the Trustee is diligent in the small cases as well as the small - i.e., to prevent cherry-picking" - going after the big cases for a beg fee and englicting the small cases.

The attorney makes a motion to re-open the case and adds the omitted creditor to the list.

Allowing this procedure makes sense because the omitted creditor has not been prejudiced by being omitted because had the omitted creditor been on the original creditor list it would not have gotten nothing anything anyway as in a no-asset case there is nothing to get!

Go back to the attorney and make the attorney do what should have been done without additional charge.

It's not that complicated and the cost of a creditor objecting to this procedure makes it unlikely that a creditor will object.

This is not the unauthorized practice of law by any stretch of the imagination - it is a discussion permitted by First Amendment Free Speech.

Bobby12

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #10 on: June 18, 2017 12:49:04 PM »
I would not bother going back to the original atty. If he wanted no part of dealing with the issue the first time around, don't expect good results even if you can convince him to take it. He probably would also charge you for the adversary proceeding. There is a small percentage of attys that actual understand this stuff and you don't want an amateur handling this. Also, you absolutely can go back and file a motion to re-open a previously discharged case and there's no time limit. The reason I asked all the questions is to try and get an idea whether your loans are actually protected from BK or not. There are very technical definitions that come from BK and IRS codes as to what actually constitute an education loan excepted from discharge. My situation could be different from yours so I can't make any guarantees. Your best course course of action would be to consult with a knowledgeable student loan atty so your specific situation can be examined. <Removed>


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« Last Edit: June 18, 2017 07:15:15 PM by Admin0248 »

chrisil13

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Re: Weltman Weinberg and Reis for Private Student Loans
« Reply #11 on: July 12, 2017 09:28:38 PM »
I know this is about a month old, but I'm currently dealing with WWR and had to reply to this.

Here is my experience with them:
- I had unpaid debt to Discover. I was not yet at a point to start being able to pay them back, but in 2015 they got a judgement against me. I did not dispute it - I owe them the money. I suppose I should have in hindsight to slow things down.
- I immediately set up payment arrangement using their automatic payments (another mistake of mine).
- After about 6 months, the automatic payments stopped - and I did not notice
- I check my bank account about 6 weeks after the last payment, and it is -$10,000. The account was frozen.
- I called and set up payment arrangements again (not automatic this time), but it took weeks to resolve. They kept sending my bank the notice to release the hold, but it was "too dark" every time. It was like they took a picture of it on a cell phone.
- I then stopped those and and entered into a DMP with a non-profit credit counseling agency. Apparently, WWR never responded to the offer. They have been paid continuously, with 3 payments in December, and once each month since then. Last week, I received notice for a hearing regarding garnishing my wages. Their reasoning is that the payment is not enough.
- They claim they sent me a demand letter. Unless a demand letter is just the same thing as a settlement offer, I do not recall receiving anything that said "pay in full, settle, or else."

A Google search and reading through the BBB found me at least one other complaint with a similar circumstance where the auto payment stopped on it's own.

My opinion after reading other complaints, is that once they have a judgement against you, they will find a way to garnish your bank account and/or wages if they want to - it does not matter if you are working with them in good faith. It seems to me they are more interested in adding on court and attorney fees, and getting settlements, rather than dealing with payment plans. I don't think they were very up front about anything. I'm astonished that they want to garnish my wages because the DMP I am on is paying about $14 less than what they had wanted each month. And now they won't negotiate.

So bottom line - protect yourself against WWR. Don't give out any information. Do not get into automatic payments with them, but if you do eventually do payment arrangements, use money order. The second they can, if they have your bank account info, they'll freeze it. Otherwise, deal with them as quick as possible to get them to go away. I think I have a couple thousand dollars worth of court and attorney fees they were tacked on.

And this is from someone who WAS paying them.

 

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