Have you been sued for a student loan?
It's normal to have serious questions when facing legal action. Most
borrowers and co-signers will want to minimize the impact of the lawsuit
and avoid having a judgment entered against them. You might be wondering:
- Why am I being sued?
- Do I really owe them the amount they claim?
- How do I fight the lawsuit? What are my defenses?
- Can I settle the lawsuit and avoid a judgment?
The lender may bring a lawsuit at any time after the loan has entered default,
which typically happens after at least 6 consecutive monthly payments
have been missed. In New York, the statute of limitations to bring a lawsuit
for private student loans is generally 6-years from the date the contract
Sued For Student Loans? Get help today!
Call (888) 301-0584 or
schedule a free evaluation.
Respond Properly and On Time
A lawsuit isn’t going to go away by itself. To avoid making the problem
worse, you will want to respond to the lawsuit promptly. Failing to respond
to a lawsuit in a timely matter can result in a default judgment being
entered against you. This could allow the creditor to collect the full
amount of their claim by freezing your bank account or garnishing your
wages. The Answer to a private student loan lawsuit in New York must be
drafted and filed in accordance with the
New York Rules of Civil Procedure (NYCPLR).
Answering the lawsuit allows the court to see that you are appearing in
the action and that you are contesting some or all of the allegations
made in the Complaint. It causes the Plaintiff to further substantiate
their claim, and also increases the borrower’s leverage to
settle student loans for a reduced amount.
Defenses for Student Loan Lawsuits
Defenses will vary from case to case based on the unique circumstances
of the matter and the specific allegations made in the Complaint. An experienced
defense attorney would be in the best position to determine your applicable defenses.
In cases where the Plaintiff is a debt buyer or an assignee of the debt,
there might be additional affirmative defenses available as compared to
a lawsuit brought by an original lender. With a debt buyer case, it’s
important to establish whether the Plaintiff actually has standing to
bring a lawsuit against you.
Example Affirmative Defenses:
- Lack of Standing
- Statute of Limitations
- Waiver & Equitable Estoppel
- Incorrect Balance
- Lack of Privity
- Accord and Satisfaction
Student Loan Lawsuit Defense Attorneys
The best way to determine the legitimacy of the Plaintiff’s claim
is to fight the lawsuit and demand evidence such as the promissory note,
loan application, notices of assignment, and any pooling or trust agreements.
Our lawyers defend borrowers from collection lawsuits brought by nearly
all major private lenders, including
National Collegiate Trust,
Arrowood Indemnity, and many others.
We are experienced litigators and understand the nuances inherent to defending
actions for private student loans. Such cases sometimes have murky evidence,
and with large claim amounts, having aggressive representation can make
a big difference in how the matter is disposed. In many cases, we can
stack the odds in our client’s favor to gain leverage for negotiating
substantial settlement reductions.
If you've been sued for student loan debt, contact us at (888) 301-0584
for a free evaluation.
With the assistance of the committed
student loan lawyers at the New York City Law Office of Simon Goldenberg PLLC, we can formulate
a defense plan that will help you sleep well at night knowing that your
rights are being rigorously pursued. It's time to get relief from
student loan debt. Call us today.