summon (navy federal credit union)

I would think with any summons that you should make sure that you answer it in time so that they do not get a default judgement, then you can come up with a plan. Maybe in front of a judge they will come up with some type of repayment plan that will work for both of you.

Hang out, I am sure that someone else will come along soon with some more advise. goodluck hope you can come up with some type of resolution that works for you.

What was the loan for?

You will have to repay this loan since the SOL will more than likely not apply here. First off answer the summons. By not doing so they will aytomatically win. When it goes to court you will be able to tell your case to the judge. I am pretty sure they are seeing wuite the number of these cases since the economy crashed so hopefully they will help find a repayment plan that will work for you. Unfortunately your co-signer may be held responsible for this debt also but if they can make repayment plans with you then more than likely they will not involve the co-signer.

In order to answer a summon, you need to visit the court which has issued the summon and ask for a "response form" from the clerk's office in the court. You need to fill up the form within the date mentioned on the summon, else the creditor can bring a default judgment against you.
The creditor can either garnish your wage or your bank account if he wins the judgment. Now, since you do not have a job, your wage cannot be garnished, but the creditor can garnish your bank account so that whenever any money gets credited in your account, your account will get debited.

Thats true. Some states do not allow for wage attatchment but there are only four that do not allow it. In those states though, once the money is in your checking account it is no longer considered wages. Best to get down to the court house and take care of answering the summons. Good Luck and if you have any other question come back and we can help.