Expert: Ray A Miller - 3/4/2011

Question
I live in Alabama but went to school at the Art Institute of Atlanta in Atlanta, GA. I was there from 2008-2010.

I had to quit school due to me not being able to find a job. I had no power, no water, no food. so I quit and moved in with my parents in Alabama.

We live in poverty so we don't have much money.

I recently found a job at Walmart working part time.
I am the type of person who hates owing debts and so I am trying to make payment arrangements with the gas company, water company, etc, including the school.

The school is holding my transcripts hostage because I owe $8000.

My question is, do they have to accept the money I owe them?

I tried to make a payment arrangement of $100 a month cause right now that's all I can afford.
she said, "well can you make a payment of $4000?" um, no I can not. "Well can a family member loan you the money?" Maam, if a family member could have loaned me the money I wouldn't have had to quit school in the first place.

I'm trying to give you $100 a month, that's all I can afford right now. I'm making $400/mo and I'm paying on 4 debts, including the IRS. So she tried to argue with me and I said I would be more than happy to just keep my money and not pay her at all, before we finally agreed on $110/mo.

She says they will only accept $100/mo for 4 months then I have to pay more. Is this true?

I couldn't understand what she said the name of the agency was, it sounded like she said "Williams and Fudge"

Answer
There is a collection agency called William and Fudge and there job is to collect the debt in full, not to set up payment arrangements.  However, there are times when that is the best they can do but remember, they do not have to.  The next step in the collection process is for them to get a judgment against you. That may not matter now, but it could in the future if you plan to own real estate.  Then of course there is your credit history to consider.

Try to talk to the collection agency and see if you can give them a financial statement and set up a permanent payment arrangement.  Remember, be professional with them and hope for the best.

I wish you the best with this.