How do I protect myself from defaulted loans when they will no longer accept payments?

How do I protect myself from defaulted loans when they will no longer accept payments?

My student loans were just accelerated because I couldn’t make a payment for the last 3 months. I have tried to work something out but the only option they are giving me is either pay them money I don’t have or they will turn it into a collection agency and go after my parents and their land since they co-signed. I have rent, utilities, food, gas and other monthly bills that are a necessity to survive. What options do I have to protect myself and my parents? Even though I have a job now and can pay again, I’m being told that it is no longer an option and that if I don’t pay them a couple thousand dollars (which I don’t have) they will take legal action against me. What do I do?

Asked on February 29, 2012 under Bankruptcy Law, Pennsylvania

Answers:

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