Lawsuit/Settlement Question, need advice please.

[emejia317]

Hello everyone-

I obtained a private student loan ~ 8 yrs ago, went to National Collegiate Trust/AES [I am supuer confused, is AES and NCT the same thing?]  from the original Lender and then to "A" C.A. I was doing monthly payments to this C.A., then suddenly they dissapeared, then a new C.A. "Law Offices of Patenaude & Felix" in California bought this loan.  Now, they are suing me.

I talked to them yesterday and they told me that I have different options for them to put the lawsuit aside, one is to get myself on a payment plan and one is to do a settlement.  I have 30 days to do this since I received this lawsuit papers 4 days ago.  The amount is for ~$12-000-13000 

I am very confused on what to do here.

Should I contact National Collegiate Trust/AES and see if they can work with me now that I have a job and work on a payment plan/settlement?  Should I work a payment plan with the new C.A. or do a settlement?

How much should I offer them?  Is there a document I can read on settlement stuff?

I dont want this sue to go on, so I want to do something in the next week.   As I said, I am pretty clueless on which option to take here. What would you guys recommend?

Thanks in advance, 

Mikey

[09Lexie]

**** REQ MOVE TO REBUILDING*****

[Elcid89]

You should contact an attorney (I am not admitted to the bar in CA), but general advice:

If this actually was a private student loan (as opposed to a federally guaranteed loan), then the SOL has run out in CA.  Third party debt collectors have to sue you in the state in which you reside, which I am assuming is California. Any suit will be deflected by that defense.

[Shogun]

You would have to find the DoFD in order to determine if it has passed the SOL. Just because the loan was acquired 8 years ago doesn't mean that's when the clock started

[Elcid89]

He states in his OP that the loan went to a third party from his original lender 8 years ago. In his case, what would determine the SOL would be the DOLA.

He really needs to speak to an attorney in his own state.

[Shogun]

For that amount of money, I agree. He really needs professional legal advice. But still, he needs the DoFD. The DoLA has nothing to do with it. He said he was making payments. Did he sign an agreement plan? If so, this starts the debt anew.

[DaBears]

OP what state did you reside in or currently living?

[Elcid89]

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@Shogun wrote:
For that amount of money, I agree. He really needs professional legal advice. But still, he needs the DoFD. The DoLA has nothing to do with it. He said he was making payments. Did he sign an agreement plan? If so, this starts the debt anew.

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My concern was his exposure to the suit. Making a payment, or even a promise to pay, restarts the SOL in most states. If he has been making payments inside the hypothetical SOL, he's probably exposed now where he otherwise wouldn't have been.

My advice to people with old debts that are outside SOL is pretty much to ignore them if you can't get rid of them. That way, in the event that a CA does bring suit, you have an affirmative defense.

[Shogun]

That was my point also. He said he was making payments, so this may not be past the SOL I'm thinking we have the same idea, I just don't have the lawyer speak.

[Elcid89]

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@Shogun wrote:
That was my point also. He said he was making payments, so this may not be past the SOL I'm thinking we have the same idea, I just don't have the lawyer speak.

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I tend to agree. He is inside SOL with the collector that he has been makling payments to. Some states do not factor that into the SOL with regard to a subsequent party. In other words, his original collector could sue, but he has no resetting event with the subsequent collector, so their ability to litigate would hinge on the DOFD. It really depends on which state he's in, which we do need to know.

Best advice is for him to consult an attorney in his own state though. I'm only admitted in NY and NJ, so I hesitate to give advice on here beyond the basic.