Student Loan Lawsuit DISMISSED

[MDG099]

Hi everyone,

I've been having some hard times over the last 4 years. Specifically BK Discharge in Feb 2017 and a Private Student Loan Lawsuit in Jan 2019.

I must say however, there is a light at the end of the tunnel. I'm in a new job with the potential to make 6 figures in the next 2 years and the Private Student Loan Lawsuit was completely DISMISSED!

The lawsuit was dimissed Dec 11, 2020. The debt was previously reporting as Charge off and has not updated as of yet. Since, the debt was dismissed should it be completely removed from my report? Should I dispute it? Is there a period of time I should wait until I dispute? 

[simplegirl]

Congratulations on the dismissal and the new job. Unfortunately that does not mean it should be deleted. The loan was still defaulted on therefore it is still reporting right. Also if it hasn't updated in awhile if you do dispute it the TradeLine being verified will drop your score drastically. I would let it be.

[barca]

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@MDG099 wrote:

Hi everyone,

I've been having some hard times over the last 4 years. Specifically BK Discharge in Feb 2017 and a Private Student Loan Lawsuit in Jan 2019.

I must say however, there is a light at the end of the tunnel. I'm in a new job with the potential to make 6 figures in the next 2 years and the Private Student Loan Lawsuit was completely DISMISSED!

The lawsuit was dimissed Dec 11, 2020. The debt was previously reporting as Charge off and has not updated as of yet. Since, the debt was dismissed should it be completely removed from my report? Should I dispute it? Is there a period of time I should wait until I dispute? 

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Congrats 

was the lawsuit dismissed due to statute of limitations  or because it was included in BK.

who brought legal action against you, collection agency or original lender

[RobertEG]

As stated by others, dismissal of a lawsuit is not the same as dismissal of the debt.

Dismissal normally is for reasons other than a finding on the merits.

What was the stated reason for the dismissal?

Unless the court proceeded with trial and made a verdict of non-indebtedness, such as a finding that the debt per se was not valid, or that it had already been discharged by payment, BK, or by cancellation by the creditor, a dismissal of a civil action would not require update of credit reporting.

Additionally, unless it was dismissed with prejudice, it would not even necessarily preclude refiling of a renewed action.

Can you provide the details of the dismissal?

[MDG099]

Hi All,

Thank you for the replies. National Collegiate Student Loan Trust sued me. This student loan was NOT included in my BK. The case was dismissed WITHOUT prejudice the day before trial. In reviewing the Dimissal, it doesn't look like a reason for Dismissal was included. 

So if I'm understading correctly, even with this lawsuit being dismissed it will still reflect "CHARGE OFF" on my credit report? Disputing the debt wouldn't benefit me? I

If that is the case, is there a certain amount of time it will stay on? 

[Anonymous]

@MDG099 It sounds like the lawsuit was dismissed, not the debt. it could've been dismissed for any number of reasons, but unless the judge ordered removal, it’s irrelevant..

Now, if you filed a countersuit and sought removal as the remedy, and he ordered that, that would be one thing; otherwise it has nothing to do with removal.

Removal is controlled by the FCRA (fair credit reporting act) which will exclude it at 7-7.5 years from the DOFD.

again the lawsuit was dismissed, not the debt, you still owe it. they could sue you again or turn it over to a debt collector or continue to pursue the debt themselves

you may wish to consult the appropriate statutes of limitation to determine if and for how long they can judicially attempt to collect the debt. And there is more information in the Scoring Primer linked at the top of my signature. Good luck!

Again the debt was not dismissed the lawsuit was. The debt will stay there until 7/7.5 years from the date of first delinquency, DOFD.

What are you talking about that it reflects discharge on your credit report for that account? I thought you said it reflected chargeoff?

[OmarGB9]

Sorry to burst your bubble, but dismissal of the lawsuit is NOT the same as dismissal of the debt itself. If the lawsuit was dismissed, that doesn't mean the debt is cleared. It just means this particular lawsuit was thrown out, for whatever reason, but if it was dismissed WITHOUT prejudice, that means the creditor can re-file the lawsuit. As far as the debt, it is still owed, you are still responsible, and the CO status will remain. Disputing will not help you in any way and may in fact actually hurt you because the debt will be verified.

[barca]

@MDG099 

how long is this debt.

the most important thing to know right now is if it is passed statue of limitations.

at least you don't have to worry about judgement .

It will eventually be removed from your credit report after 7 years or so, unless you want to app for something.

[gdale6]

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@MDG099 wrote:

Hi All,

Thank you for the replies. National Collegiate Student Loan Trust sued me. This student loan was NOT included in my BK. The case was dismissed WITHOUT prejudice the day before trial. In reviewing the Dimissal, it doesn't look like a reason for Dismissal was included. 

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If you had this SL at the time you filed your BK even though it may not have been on the schedules it was discharged unless you reaffirmed the debt. Federal guaranteed SLs cant be discharged in a BK but private SLs can.

[MDG099]

August 2016. I believe that would put me around August 2023. 

My apologies for getting the verbiage wrong and thank you all for the clarification. I appreciate the input. I'm looking at this as a positive that the lawsuit was dismissed even though the debt wasn't. I'm hoping it falls off in August 2023 with no further issues, but time will tell. I will leave it be for now. 

If you all have any further recommendations please share. Thank you!