DebtDoc Bankruptcy News Blog

Saturday, 30 May 2015 00:00

State Court Collection Lawsuits and Private Lenders

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Have you defaulted on your Private Student Loan? Has it been in collections for a long time? Have you essentially ignored the problem hoping that it would go away? If you have been served with a state court lawsuit, now is the time for student loan resolution.

First step is to understand who the players are, and why you are being sued. The Number One player who most likely is suing you is National Collegiate Trust, or NCT. You may have heard from them directly, or from one of several collection agencies, or collection Law Firms. You may not have any idea why they are suing you, but the most important step in the process is consult with a student loan resolution lawyer immediately. Do not ignore the lawsuit.

NCT has your loan because the original lender, a bank typically, sold your loan soon after you acquired it. Then the loan was packaged up and placed in a trust, now the trust wants it’s money. This is a very simple explanation of a complex process. The business model for NCT and it’s agents is to obtain a default judgment against you. This is what will happen if you do nothing. That is why contact my office immediately upon being served is essential for a fair student loan debt resolution.

Unless you are an experienced attorney in the area of student loan law, do not attempt to answer the lawsuit yourself. A well pled answer must be made as well as all the contractual affirmative defenses you may have. Each case is fact specific and you need an experienced student loan lawyer to assist you to preserve your rights. Do Not Delay. The process is time specific.

You may find yourself being sued by Sallie Mae, or Educap, or any one of several private student loan lenders. All of the above rules apply for student loan debt resolution and to protect your rights.

The Consequences: Losing a case by default is one of the most devastating events that can occur. If this happens, you have lost all your rights to defend yourself if enough time has passed. That is why acting immediately is critical. Failure to act can cause your wages to be garnished. Failure to act can cause your bank account to be levied, meaning totally cleaned out. Failure to act can cause a judicial lien being placed against your property. None of these collection activities are acceptable in student loan debt resolution.

If you find yourself  on the receiving end of a state court collection lawsuit, act now and contact my office. You will receive a free consultation wherein I will review the lawsuit and evaluate your legal position and get you down the road to student loan debt resolution.

Read 6844 times Last modified on Friday, 01 February 2019 06:02
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

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Clients with Student Loans

Some information I need to evaluate your Student Loan options is contained in your National Student Loan Data System Report. Instructions for obtaining this report are available on my web site at Simply print/save the reports as a PDF, of all pages. Please DO NOT "DOWNLOAD" THE REPORT from the link - this creates a text file that is very difficult to read; please print the web page as a PDF file - the summary page of all loans AND the individual reports for each loan. Samples of these pages can be viewed by clicking the respective links in the previous sentence. I look forward to reviewing this report with you and assisting you with the management of your Student Loan debt.

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