Debt Lawsuit Defense

Credit Card & Student Loan Defense

SO YOU'VE BEEN SUED

If you're looking at this page, you have probably been served with a summons and complaint. Maybe you are being sued for credit card debt. Maybe it is student loan debt. Either way, it's pretty likely that you've never heard of the company that is suing you. If it's for credit card debt, it's probably a junk debt buyer. If it's for a student loan, it's probably a debt buyer or a trust that purchases bulk student loan debt.

WHAT IS A DEBT BUYER?

A debt buyer is a company that purchases defaulted debt for almost nothing. They purchase old, bad debt and for pennies on the dollar and then try to collect it from consumers. Some debt gets passed around from buyer to buyer. Eventually one of those buyers will file a lawsuit and hope you don't respond so they can get a judgment. In short, think of the worst company you have ever done business with. Multiply that by 100 and you'll have the average debt buyer.

HOW TO FIGHT BACK

So you've received a summons and complaint. The debt buyer expects you to ignore it so they can take a default judgment and start garnishing wages. What they don't expect is that you'll hire a lawyer and defend the lawsuit. They hope against hope that you don't do that because their records are almost universally terrible. It's a rare case that they have the documentation they need to prove they own the debt. If they can't prove that they own the debt, you can fight back hard and win.

ANYTHING ELSE?

Of course. Sometimes debt buyers bring lawsuits that they don't have the documents to prove. When that happens, they often get counter-sued for violating the FDCPA. So if you have been sued by a debt buyer, don't just ignore it. If you fight back, you might just win.

WHAT ABOUT STUDENT LOANS?

STUDENT LOAN DEBT IS A BIG PROBLEM

More money is owed for student loans than credit card debt. Student loan debt is a big, scary deal. It might be holding you back from your true potential. I can help you manage it and move on.

The amount of student loan debt currently owed is over one trillion dollars. That’s $1,000,000,000,000.00.

Think of it this way—you would have one trillion dollars if you made one million dollars every day for the next 2,737 years.

Student loans are a little different than credit card debt. They are much more difficult to discharge in bankruptcy, but there are a number of repayment options available that are not otherwise available for credit cards.

STUDENT LOAN REPAYMENT PLANS

The most important factor in determining how to pay back student loans is the type of loan that you have. There are a number of loan repayment options available for government loans that are not available for private loans. Each private loan company may have its own loan repayment programs. You may also be eligible for a forbearance, deferment, discharge, or forgiveness. Each of these options has possible tax and legal consequences, so it is usually a good idea to talk to a lawyer or tax professional who understands the ramifications of various types of student loan repayment options.

CONSUMER RIGHTS & STUDENT LOANS

Student loans are consumer debt. Debt collectors who collect student loans are usually subject to the Fair Debt Collection Practices Act. Simply put, they have to behave in accordance with the law or they can be sued like any other debt collector. Debt collectors are not allowed to use unfair practices, abusive language or tactics, or harassment to collect student loan debt.

If your student loans are in default, you lose some beneficial governmental protections and repayment options. It is usually in your best interest to deal with student loan default right away to avoid problems down the road.