CO'd Private SL with Chase

[Efour]

Hello!

 I have a Private SL from Chase that was CO'd in June '10. I was wondering what the best way to structure a settlement with them would be.. The original terms of the 16k loan were 10 years @ 6.5% or so. They want me to settle for a little over 20k right now, last I spoke with them. I am currently paying $50 a month on it since I am morally and obligated to pay whatever I can on it through Chase Military and was wondering how that would effect the prospect of me settling with them someday? Is the fact that I am paying them money right now I know going to reset the SOL (I was in NY when it was issued)? I am wondering because when I tried to settle with them in the past they demanded an all or none situation and there is no way I can come up with that kind of money all in one shot! I am afraid that they are going to come after me in court when I get out of the Army in 2017, since they will no longer accept whatever I can offer them per month. Does anyone have any advice for me? I want to make things right, but I don't know how to go forward.

My Federal student loans are all in good shape and are currently in IBR (i'm looking forward to Public Service Loan Forgiveness on them someday). 

I was recently approved for a 5k NFCU goCash CC with a Prime+3.5% interest rate. So there seems to be some hope for me in re-establishing credit worthiness.

[RobertEG]

Apparently, they have not accepted a monthly repayment plan, and you are just continuing to pay what you can to show effort to repay?

[Efour]

Roger that.

Has anyone had any luck getting them to do an in-house rehab?

How/who would I speak to in order to get the ball rolling on that, if it's even possible?

[RobertEG]

If you are in default and have no enforceable repayment agreement with them, then they could bring legal action seeking a judgment.

Whether or not you have an SOL defense will depend upon the SOL statute that applies in the jurisdiciton where the legal action is brought, such as whether hving made the payments constituted reset of the running of the SOL.

[Efour]

I know this now (having done a good deal of reading on these boards since initially posting this).

What I wonder is how, if at all, I may preclude the possibility or judgment and 

        a) get back into a structured repayment plan (via rehabilitating the loan)

                                                    or

        b) settle with them.

I have read that initiating the conversation about settling is not likely to go well for me, because the ball is in their court at that point.