If you are a student loan borrower, it is imperative that you understand the collection tactics that can be used by your lender if you default on your loan. Collection lawsuits are the primary tool available to private lenders to collect on their past due loans. The federal government has a wide variety of collection tools available to it, even without having obtained a court judgment against you. However, this does not mean that the government will not file a lawsuit against a student loan borrower – it still occurs, just not as frequently as with private lenders. Of course, both the government and private lenders use debt collectors to pressure student loan borrowers into paying their debt.
As soon as you are served with a collection lawsuit by your student loan lender, you should contact us for assistance. Borrowers have a limited amount of time to answer the allegations and failure to do so can result in a default judgment being entered against you. Once a creditor has obtained a judgment against you, they can being collection efforts against you that typically include garnishing your paycheck, garnishing your bank accounts, filing judgment liens against your real property, and a variety of other measures to collect the debt.
There are numerous ways our attorneys can assist you. We will review your individual circumstances and determine all of the defenses that are available to you. Below are a few of the possible defenses that you may be able to use to fight the lawsuit against you:
- Failure of the lender to properly credit payments to your account
- Failure of the lender to honor special rights afforded to active military members
- Identity theft, your signature was forged, or the debt does not otherwise belong to you
- The debt being collected has been discharged in bankruptcy
- The amount being collected by the creditor is incorrect
- The lender is unable to prove it is the owner and holder of the debt
- If it is a private loan, the lender has waited too long to file the lawsuit against you
Responding to the lawsuit against you and establishing your available defenses is important not only to prevent a default judgment against you, but it also can assist with settlement negotiations with the plaintiff. Once the lender understands that it will take time and money to proceed with the lawsuit against you, a settlement may seem more favorable.
Our debt settlement attorneys excel in settling debts and working out a manageable repayment plan. Take the first step to resolving your debt problems today by contacting us for a FREE initial consultation. The attorneys at Fitzgerald Campbell represent debtors all over the State of California in debt settlement, collections harassment and credit card lawsuits. If you have a matter relating to a debt you owe, contact us today by calling (844) 431-3851 for a consultation.