Chase private student loan chargeoffs - wage garnishment, 1099C form, or both?

[SixFigureMess]

What is the name of your state (only U.S. law)? VA

PROBLEM: I have over $19,000 in charged-off private student loans with Chase, with more on the way. I have re-iterated that I work no more than 29 hours a week. As someone told me, they don't think Chase will walk away from this since I owe so much. I even applied for a loan from my credit union to pay off part of the charge-off, but was denied.

QUESTION: Do you think it is likely Chase bank will try to pursue a wage garnishment, or do you think they'll realize it's useless and send out a 1099C cancellation of debt form? Or perhaps both? Or perhaps even take the money in my bank account?

Everyone I talk to Chase National Recovery Group (their internal charge-off department), they tell me they aren't at liberty to discuss what the bank may do. Joe H. called me back and said that the charged-off accounts are reviewed every business day, and there's not a "deadline" per se of when Chase Bank will take action. He said even if I were to send in $50, the bank could still take action because it's less than the agreed-upon amount (they only offered me $1,900 down + $400/month for 6 months, or just $1,900 as a 50% debt settlement for the smallest charge-off. They will not accept more than 50% off.)

I am new to this board, so I apologize if this doesn't belong here.

 

[FlyingRon]

Charge off means squat to you.

If this was not a federal student loan, they can't garnish wages in Virginia anyhow.
The can seize some personal assets (bank account balances) but they need to sue you and get a judgement first.

 

[Proserpina]

Charge off means squat to you.

If this was not a federal student loan, they can't garnish wages in Virginia anyhow.
The can seize some personal assets (bank account balances) but they need to sue you and get a judgement first.

Virginia does allow "regular" creditors to garnish the debtor's wages.

http://www.doli.virginia.gov/laborlaw/support_files/garnsupp_wholddebts.html

 

[SixFigureMess]

I spoke to the account representative for the charged-off loans, and she told me she *might* be able to get me a debt settlement of $6,000 for the $19,000 owed. Because I was rejected by 4 places I applied for a loan, she suggested I have my mother co-sign. Personally, I think this is a bad idea, but it would save me time and stress. On the other hand, I'd never forgive myself if my mother's credit was ruined.

 

[SixFigureMess]

How long can a wage garnishment last in Virginia?

I spoke to the account representative for the charged-off loans, and she told me she *might* be able to get me a debt settlement of $6,000 for the $19,000 owed. Because I was rejected by 4 places I applied for a loan, she suggested I have my mother co-sign. Personally, I think this is a bad idea, but it would save me time and stress. On the other hand, I'd never forgive myself if my mother's credit was ruined.

Does anyone know how long a wage garnishment can last in Virginia; i.e., is it true that my private student loans could be garnished for 10-20 years and renewed for another 10-20 years?

 

[CreditCounselor]

Chase, like some private loan lenders, may be willing to break up the settlement into a structured payment amount over 6 months or more. That might help to take the settlement.

What is the name of your state (only U.S. law)? VA

PROBLEM: I have over $19,000 in charged-off private student loans with Chase, with more on the way. I have re-iterated that I work no more than 29 hours a week. As someone told me, they don't think Chase will walk away from this since I owe so much. I even applied for a loan from my credit union to pay off part of the charge-off, but was denied.

QUESTION: Do you think it is likely Chase bank will try to pursue a wage garnishment, or do you think they'll realize it's useless and send out a 1099C cancellation of debt form? Or perhaps both? Or perhaps even take the money in my bank account?

Everyone I talk to Chase National Recovery Group (their internal charge-off department), they tell me they aren't at liberty to discuss what the bank may do. Joe H. called me back and said that the charged-off accounts are reviewed every business day, and there's not a "deadline" per se of when Chase Bank will take action. He said even if I were to send in $50, the bank could still take action because it's less than the agreed-upon amount (they only offered me $1,900 down + $400/month for 6 months, or just $1,900 as a 50% debt settlement for the smallest charge-off. They will not accept more than 50% off.)

I am new to this board, so I apologize if this doesn't belong here.