In today’s article we are discussing a student loan lawsuit brought
in New Jersey in which we defended the client and ultimately settled for
a substantial reduction.
As is often the case, the borrower had fallen on hard times and consequently
defaulted on a private student loan. The debt was assigned by Citibank to
United Guaranty Commercial Insurance Company (hereinafter “United Guaranty”), which retained the law firm of
Schachter Portnoy LLC in Princeton, New Jersey. In turn, they brought a lawsuit against the
borrower for approximately
In our answer to the lawsuit, we asserted a broad range of defenses, including:
- Questioning the accuracy of the balance
- Alleging that the assignment to United Guaranty was incomplete or otherwise
- Contesting United Guaranty’s standing to bring the lawsuit
We followed up with comprehensive discovery demands, including a request
for admissions, interrogatories, and a demand for production of documents.
The purpose of making these demands is to identify evidence which will
shed light as to the legitimacy of the claim, or lack thereof.
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Given this client’s preference to resolve the matter expeditiously,
the borrower instructed our firm to explore settlement negotiations. Some
of the major benefits of settling a lawsuit is to avoid the costs and
risks associated with protracted litigation, including the risk of having
a judgment entered for the full balance. The borrower was on a limited
budget, so we needed to work towards achieving an arrangement that she
could afford on a monthly basis, while simultaneously working towards
reducing the student loan debt as much as possible.
Ultimately, the parties stipulated to
settle the lawsuit for a total of $8,000, to be paid with an initial down payment, and affordable monthly payments
thereafter for a period of several years. This arrangement allows the
save over $16,000 on her student loan balance with United Guaranty and avoid further litigation.
By taking advantage of this settlement, the borrower stands to
reduce the balance by 67%.
If you are overwhelmed by a
lawsuit for student loan debt, call our law firm to learn your options for relief. Our debt lawyers
assist with defending lawsuits in New York and New Jersey brought by collection
firms such as
Schachter Portnoy on behalf of Plaintiff’s such as
United Guaranty Commercial Insurance Company.
Contact our lawyers at (888) 301-0584 to
schedule your free case review and learn how
we can help.
Prior results do not guarantee similar performance. Results vary. This illustration
is intended to highlight an achievement of the law firm, and should not
be relied on to be typical. While we strive to maintain accuracy and provide
relevant case histories, in order to protect the confidentiality of our
client(s), all numbers are approximations and are offered for illustrative
purposes only. We make no claim or allegation of wrongdoing by the entities
discussed on this page. United Guaranty Commercial Insurance is sometimes
mispelled as "United Guarantee". Call us for an evaluation of