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AlexiaEsq.
AlexiaEsq., Managing Attorney
Category: Consumer Protection Law
Satisfied Customers: 13549
Experience:  19+ Years of Legal Practice in Consumer Protection.
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Hi Alexia, I went to FIT a few years ago, and i had to get

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Hi Alexia,

I went to FIT a few years ago, and i had to get 5 student loans. I had a really hard time after school, so i ended up defaulting in all the loans. I was able to work with the other 4 agencies and settle with them financially, but there was one that was not willingly to work with me. I haven't been able to pay them at all the last year, and now they are bringing me to court in a civil suit through some law firm in nyc. I still owe them about 20k.

Questions:
1. Can i still settle this out of court, since they summoned me?
2. If I must go to court, should I get a lawyer?
3. Can they take my savings or garnish my wages?
I have alerted Alexia of your question.

Thanks for your patience.
Good morning, and thank you for asking for me.

Hi Alexia, And hi to you also.

I went to FIT a few years ago, and i had to get 5 student loans. OK.

 

I had a really hard time after school, so i ended up defaulting in all the loans. Not uncommon, I am afraid. You are in good company.

 

I was able to work with the other 4 agencies and settle with them financially, but there was one that was not willingly to work with me. OK.

 

I haven't been able to pay them at all the last year, and now they are bringing me to court in a civil suit through some law firm in nyc. I still owe them about 20k. OK

Questions:
1. Can i still settle this out of court, since they summoned me? Sure, if both parties are willing to settle - then they can file a Motion to Dismiss the Complaint without prejudice - such that should you breach you new settlement agreement, they can refile the Complaint on the old breach, and/or file claim based on breaching your new agreement.


2. If I must go to court, should I get a lawyer? If you are not as well-versed and studied up as a lawyer, that would be ideal. However, if you do not have a defense to the action, a lawyer can't likely win anything for you anyway. The question really may be, do I have a legal defense to the claim - and for that, you may want to take the information to a lawyer for him to evaluate - maybe cost you a consult fee - but you will know whether it is worth your time and money to fight it.


3. Can they take my savings or garnish my wages?Generally, yes, in NY. You will not want to keep any money in any bank accounts that have your name on it while there remains a judgment on your record. Unfortunately, that can mean decades. As such, if you can get a settlement agreement with payment plan in place before judgment, that would be ideal. Once a judgment exists, you have interest that gets added, plus attorneys fees, and that $20k is $30k very quickly - often growing bigger despite monthly payments because of the interest, or, not reducing at an acceptable rate. It is often the best idea to pick up a second job in the evenings SOLEY to pay off this debt, to prevent it from weighing you down for decades to come. I know it is not a pleasant thought, and trust me when I say, I and so many others are in the same place, paying extremely burdensome school loans for many years (replacing retirement savings, unfortunately). This is why I do urge you to get it paid off without a judgment, or even post judgement if they agree in writing to NOT garnish so long as you are paying as agreed.

Optional Information:
Country relating to Question: United States
State (if USA): New York

 

I hope this helps! My goal is to provide you with excellent and accurate service – if you feel you have gotten anything less, please reply back, I am happy to address follow-up questions. Kindly rate me "excellent" when you are done. I look forward to assisting you in the future, should you have legal questions.

Sincerely,

Alexia Esq.

AlexiaEsq., Managing Attorney
Satisfied Customers: 13549
Experience: 19+ Years of Legal Practice in Consumer Protection.
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