Expert: Terry Leeders - 10/6/2008

Question
Hello,

I have an unpaid tuition bill that has been presented to collections for a semester in which I dropped out of school in 2005. The entire bill is $3538 - which includes $1974 in tuition fees $205 in tickets  $474.50 in fees and $884.50 in collection cost - as of this point $116 has been collected from my state taxes leaving a balance of $3421.15 - My issue is - since my original balance of tuition and tickets cost is only $2180 - Question #1: Can I attempt to settle on the remaining fees/collection cost of $1360 - Question 2: Is there not a percentage in which I can only be charged up to on the fees/collection costs as they have charged me up to 62% of the original balance - Question 3: At this point is it best if I attempt to hire an lawyer to assist me in settling this debt and since the cost is so low is it feasible for me to believe a lawyer will attempt to assist me with this issue?


Answer
It would be best to negotiate with the lenders as Tuition and tickets are non-dischargeable in bankruptcy.

Followup:  All interest and collection costs are also not discharged.
1. You can settle anything if you can get the lender to agree to it.
2. state and federal law may govern.  I practice bankruptcy only and do not know.
3. your call.  You can pay an attorney to negotiate for you, or you can try it your self.  I've seen results both ways.
4. You shouldn't give poor scores when you ask a bankruptcy attorney a non-bankruptcy set of questions.  Please revise.