Austin Student Loan Lawsuit Defense
Have you defaulted on a student loan or have you been sued for a student loan in Austin?
If you have defaulted on a student loan or if you have been sued for student loan in Austin please understand that you are not alone. Student loan default rates are at record highs and student loan lawsuits on the rise.
Problems with Student Loan Defaults in Austin, Texas:
If your student loan creditor files a lawsuit and obtains a judgment against you they can likely do the following:
1) Cloud title on your homestead property
If you own a Austin home, a student loan judgment can cloud title on your HOMESTEAD. In Texas your properly filed homestead exemption should protect your home from any kind of forced sale of the property however, in my experience you will have a difficult time ever selling or re-financing your home if a judgment is entered and no full or partial release is obtained.
2) Garnish/Freeze/Take your bank account(s)
In Texas a student loan judgment creditor can garnish your bank account. They can only do this if they sue you and obtain a judgment so you should do everything in your power to prevent this from happening.
3) Seize any “non-exempt” property from you
A student loan judgment creditor in Austin can force the sale of any non-exempt property that you own. Generally they do this with a “writ of execution.” They can send the sheriff or constable out to your property to search for non-exempt property that can be seized and sold.
4) Put the judgment on your credit report for 10 years
A student loan judgment is usually reported as a “public record” on your credit report similar to a Bankruptcy. This type of record is usually devastating to a credit report because bad debts are supposed to be removed from your credit report after 7 years from the final payment to the original creditor. A student loan judgment, however, can stay on for 10 years or more if it is renewed.
How to Stop Student Loan Lawsuits:
1) Resolve the Student Loan Default before there is a Lawsuit
If you have defaulted on a student loan, chances are you may be sued for that debt. Please contact our office to see if we can help prevent the debt from becoming a lawsuit.
2) Fight the lawsuit
If you have received a lawsuit, you only have a limited time to respond and comply with the Texas Rules of Civil Procedure. Does this creditor have the right to sue you? Is your student loan supposed to be in deferment? Did the creditor file the lawsuit within the statute of limitations? These are all questions that need to be answered and depending on your specific facts, you may have defenses that are good enough to get your lawsuit dismissed.
3) Settle the Lawsuit
Since Bankruptcy is usually not possible, working out a settlement with your student loan creditor is often the best way to resolve them. This is generally not something that should be done without an attorney. You are entering into a binding legal agreement when you settle a debt or workout a new repayment plan. We can assist you in settling your student loan lawsuit in Austin.
What are your Fees?
We do not have an hourly rate, they should be outlawed. We charge FLAT FEES and we can quote you a flat fee after briefly discussing your situation with you. You will know exactly how much it will cost to hire us for this Austin Student Loan Lawsuit.
We would be happy to answer any additional questions that you may have.
Contact us now for free with no obligation consultation.
Weston Legal provides Student Loan Lawsuit Defense in Austin.