Debt, Student Loan, Tax & Litigation Glossary (New York)
This glossary provides comprehensive definitions of legal and financial terms used in debt collection defense, student loans, credit reporting disputes, merchant cash advance litigation, SBA/EIDL loans, tax debt resolution, and New York civil litigation under the CPLR.
DEBT RELIEF & DEBT LITIGATION
Debt Relief: Legal strategies used to reduce, restructure, or eliminate debt, including settlement, litigation defense, bankruptcy alternatives, and negotiation.
Debt Lawsuit Defense: Defense of lawsuits involving credit cards, student loans, merchant cash advances, and business debt collection actions.
Debt Lawyer: Attorney representing defendants in debt lawsuits, student loan litigation, SBA disputes, tax debt matters, and credit reporting claims.
Debt Negotiation: Process of resolving debts for reduced balances or structured repayment agreements.
Debt Reduction: Strategies to lower total debt exposure through settlement, defense, or legal remedies.
Debt Forgiveness: Cancellation of debt through settlement, bankruptcy discharge, or statutory relief programs.
AFFIRMATIVE DEFENSES (NEW YORK CPLR § 3018(b))
Statute of Limitations (CPLR § 213): Bars lawsuits filed after the legal time period (typically 6 years for consumer debt).
Lack of Standing: Plaintiff cannot prove ownership of the debt or right to sue.
Improper Service of Process: Defendant was not properly served under CPLR Article 3.
Payment / Settlement: Debt was already paid or resolved.
Identity Theft: Defendant is not the actual obligor on the account.
Failure to State a Cause of Action: Complaint does not legally support recovery.
COUNTERCLAIMS
FDCPA (15 U.S.C. § 1692): Federal law prohibiting abusive or deceptive debt collection practices.
FCRA (15 U.S.C. § 1681): Federal law governing credit reporting accuracy and dispute obligations.
GBL § 349: New York law prohibiting deceptive business practices.
Abuse of Process: Misuse of litigation to pressure or harass a defendant.
CREDIT REPORTING & CREDIT BUREAUS
Credit Reporting Disputes: Challenges to inaccurate credit reporting, including debts, collections, student loans, and judgments.
Credit Bureau: Experian, Equifax, TransUnion.
Credit Report: Consumer financial history used for lending decisions.
FCRA Violation: Failure to investigate or correct inaccurate reporting.
STUDENT LOANS
Student Loan Litigation: Defense of lawsuits involving federal and private student loans.
Federal Student Loans: Direct Loans, FFEL Loans, PLUS Loans, Perkins Loans.
FFEL Loans: Federally guaranteed loans issued by private lenders.
Private Student Loans: Loans issued by private lenders such as Navient, Sallie Mae, Citizens Bank, College Ave, Discover, SoFi, Earnest.
Student Loan Default: Occurs after approximately 270 days of nonpayment for federal loans.
Student Loan Forgiveness: Includes PSLF, Borrower Defense, disability discharge, and income-driven repayment forgiveness.
Loan Servicers: Navient, MOHELA, Nelnet, Aidvantage, Sallie Mae.
MERCHANT CASH ADVANCES (MCA)
Merchant Cash Advance: Purchase of future receivables often litigated as disguised lending transactions.
Confession of Judgment: Legal instrument allowing judgment without litigation (restricted in NY).
UCC Lien: Security interest filed against business assets.
Reconciliation Clause: Adjustment mechanism based on business revenue performance.
MCA Litigation Defense: Defenses include usury, fraud, lack of reconciliation, and improper damages calculation.
SBA & EIDL LOANS
SBA Loan: Loans guaranteed or administered by the U.S. Small Business Administration.
EIDL Loan: Disaster relief loans issued by the SBA, including COVID-era programs.
SBA Default: Failure to repay SBA loans leading to collection actions and Treasury offset.
TAX DEBT
Offer in Compromise: IRS program allowing settlement of tax debt for less than full amount owed.
Tax Lien: Government claim against property for unpaid taxes.
Tax Levy: Seizure of wages or bank accounts for tax debt collection.
DEBT BUYERS
Debt Buyer: Company purchasing charged-off debt for litigation or collection.
Major debt buyers include Midland Credit Management, LVNV Funding, Portfolio Recovery Associates, Velocity Investments, Crown Asset Management, CACH LLC, Jefferson Capital Systems.
Chain of Title: Proof of ownership history required to establish standing in court.
NEW YORK CIVIL PROCEDURE (CPLR)
CPLR 3211: Motion to dismiss defective claims.
CPLR 3212: Motion for summary judgment.
CPLR 5015: Motion to vacate judgment for fraud, lack of service, or excusable default.
Order to Show Cause: Emergency motion used to vacate judgments or stop enforcement.
Service of Process: Legal requirement for proper delivery of court papers.
Traverse Hearing: Hearing determining whether service was valid.
Standing: Requirement that plaintiff prove legal right to sue.
JUDGMENTS & ENFORCEMENT
Default Judgment: Judgment entered when defendant fails to respond.
Vacate Judgment: Legal process to cancel or reopen a judgment under CPLR 5015.
Bank Restraint: Freezing of bank accounts under CPLR Article 52.
Wage Garnishment: Court-authorized deduction from wages to satisfy judgment.
CONTACT
The Law Office of Simon Goldenberg PLLC represents clients in debt collection defense, student loan litigation, credit reporting disputes, SBA matters, MCA litigation, tax debt resolution, and New York civil litigation.
