Consumer complaint received 2017-05-17
Company: TRANSWORLD SYSTEMS INC
State: VT
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
I had a lot of debt prior to my student loans and I was trying to get that under control so that I was able to pay back my student loans when the deferment period was over. I was scammed by a lawyer company that promised to help reduce and eliminate credit card debt to avoid bankruptcy. I lost over {$7000.00} in the process. I canceled my account with them and they only returned {$780.00} to me and did not help me handle my debt. I ended up filing bankruptcy in  XXXX .      Well ti me was coming where I had to deal with my student loans both private and federal. The private len der  XXXX  sent my d ebt to a debt collector  XXXX  and  XXXX . This debt collector contacted me and wanted me to pay {$2000.00} per month to clear the debt. I told them I could not pay that much. They proceeded to send me court papers to initiate wage garnishment. I made several attempts to go to the court and ask for lower payments. I was unable to talk to and person in the courtroom. I attempted to get a lawyer to help me with this situation and I could not find an attorney that would even touch the case.     Garnishments started in   XX/XX/XXXX   and continued til   XX/XX/XXXX ,  where the payments being taken out of my paycheck were being returned to me because  XXXX  filed bankruptcy. I believe I go t 6 of t he payments made, returned to me. The garnishment finally stopped around   XX/XX/XXXX .  No other mention of the garnishment was made until   XX/XX/XXXX   where the garnishments were reinstated and money again was being taken out of my paychecks.     At this point, the garnishments put me back into poverty. I lived in subsidized housing and was barely making ends meet just to pay my rent. I to ok two more  jobs to help me pay my rent. I even canceled my landline and my cable to help reduce my monthly expenses. I already use coupons and recycle to save money. Well, since I lived in subsidized housing, there were income limits to follow. In   XX/XX/XXXX , I  received a letter from my housing management that HUD was going to have residents that earned more than the income limits, move out. Even though I was above the income limits, I was being garnished so much that I would not be able to afford to live outside of subsidized housing. I was having a hard tim  e paying for rent as it was.
I had depleted most of my 401K account j  ust to get by and be able to buy food. I did n't even qualify for free food because I made too much money. Now I not only owe on the student loans, but now owe the IRS more than {$24000.00} (  XX/XX/XXXX   )  and roughly {$7000.00} (  XX/XX/XXXX   )  because of the money I have taken out prior to me turning  XXXX .     I have had to move back in with my mother and take a job that only pays $  XXXX /hour. This hourly wage, according to HR, is recommended for the 30 years of experience that I have in   XXXX  . At this point, I do n't know how I am even going to get started with regards to paying back these loans.

Company response to consumer: Closed with explanation