Debt Lawsuit – Law Office of Rick Morin, PC

Who is LVNV Funding LLC?

LVNV Funding LLC is a very large debt buyer and collection agency. If you see LVNV Funding on your credit report, read on to learn more about this company.

You Might Owe LVNV Funding Money

Never heard of LVNV Funding? Confused because you have never taken out a loan from LVNV Funding? That does not mean that you do not legally owe them money.

Debt collectors such as LVNV Funding buy up bad debt from other creditors. Once LVNV buys that debt, they can legally collect it from you. This is despite the fact that you don’t have any formal relationship with the company.

Don’t Assume That You are Legally Required to Pay LVNV Funding

Some debt collectors purchase accounts that are too old to legally collect. These debts are past the “statute of limitations.”

However, a debt collector can still legally ask that you voluntarily pay an old debt. The statute of limitations just prevents the collector from legally enforcing the debt in court.

Some people make the mistake of voluntarily paying a time-barred debt. This is a bad idea! Never pay a debt that the creditor cannot legally enforce.

Sued by LVNV Funding? Don’t Panic!

Sometimes debt collectors such as LVNV Funding will file a lawsuit. They are seeking to enforce their debt against the debtor. Ultimately, LVNV Funding wants to obtain a judgment.

With a judgment, LVNF Funding can garnish wages, record liens against property, and levy bank accounts.

Some people panic once LVNV files a lawsuit. Don’t do that! Hiring a lawyer to fight LVNV Funding in court can help prevent judgments, garnishments, and foreclosures. Bankruptcy might also be a good option.

Don’t delay any longer. If LVNV Funding is suing you or already has a judgment, please call my office at (916) 333-2222 to discuss your options.

March 3, 2018/by Attorney Rick Morin

Creditors, Student Loans

National College Student Loan Trust Lawsuit

I help clients with substantial student loan debt all of the time. Of course, there is nothing wrong with student loans. Financing a reasonably priced good education is a smart life decision. However, what happens when a person defaults on their student loans? And who is the National College Student Loan Trust? Read on to learn more.

Student Loan Debt Default

If a borrower stops paying for their student loans, it is said that the borrower “defaults” on the debt. When a borrower defaults on a debt, the creditor can take legal action against the borrower.

In some cases, a student loan creditor can intercept tax refunds. Or in other cases, the lender will file a lawsuit agains the borrower in state court. If the lender obtains a judgment in court, the lender can garnish wages, place liens on property, and even levy money directly out of bank accounts. This is all true for student loan accounts.

However, as the New York Times recently pointed out, not all student loan debt lawsuits are valid.

Who is the National College Student Loan Trust?

The National College Student Loan Trust is one of the largest owners of student loan debts in the country. Most borrowers have never heard of them before until they run into trouble with their student loans.

As the true owner of the debt, the National College Student Loan Trust should be the party with the authority to actually file a lawsuit against the borrower. The New York Times pointed out that the National College Student Loan Trust has run into significant trouble proving that they actually own some student loan debt.

This gives borrowers an opportunity to contest these student loan lawsuits. Only the true owner of the debt has the ability to file a lawsuit against a borrower. If the plaintiff in a lawsuit cannot establish their ownership interest over the account, they cannot win the lawsuit. That is, if the borrower fights back in court.

What to do if you are sued by the National College Student Loan Trust

If you are sued by the National College Student Loan Trust, don’t panic. As discussed above, you may have some valid defenses against the lawsuit. However, it is important that you take action fast. Most borrowers do not even appear in court in these lawsuits. This means that the lender can win the case automatically.

You should contact a lawyer immediately if you are served with a debt lawsuit. If you wait too long, you will forever lose your right to defend yourself in court.

August 1, 2017/by Attorney Rick Morin

General Debt

Co-Sign Debt Lawsuit (Don’t do it!)

People often co-sign debts without realizing that there can be severe consequences down the road. For instance, a lender can sue a co-signor if the primary borrower defaults. Read on to learn more about these insidious lawsuits.

Co-Signing a Loan is Very Serious

Co-signing on a loan for a friend or family member seems like a simple way to help. However, not everybody realizes that a co-signor is 100% legally obligated on the account. This means that a lender can legally collect the account from the co-signor in the event that the primary debtor defaults.

Lenders allow co-signors because it gives the lender an additional person from whom the lender can collect money. Some people mistakenly believe that they are merely lending their credit score to a loan application.

Co-signing a loan for a friend, distant relative, or boyfriend/girlfriend can be especially dangerous. You really do not want to get left holding the bag on a car loan for an ex. That just is not fair at all!

Lenders Can Sue You Over Co-Signed Debts

Let’s pretend that a debtor stops making payments on a car loan. You co-signed the car loan. The lender can legally go after both the original borrower and you as the co-signor. In fact, the lender doesn’t even need to sue the original borrower. A lender can file a lawsuit solely against the co-signor!

A co-signor doesn’t have very many defenses in court. The co-signor agreed to be liable on the loan. A co-signor can try to file their own lawsuit against the original borrower. But that is an expensive and time-consuming process.

The Easy Solution

The easiest solution to this problem is simple. A person should not co-sign loans! Lenders are giving less and less importance to co-signors on loans these days. This means that adding a co-signor to a loan only marginally increases the chance of the loan being approved. But as I discussed above, the consequences for a co-signor can be huge.

Bankruptcy might be a good option for a person facing a lawsuit over a co-signed debt. There is absolutely no realistic reason why a person should pay off a car loan for someone else.

Call my office today at (916) 333-2222 to discuss your bankruptcy options if you are being sued over a co-signed debt.

July 9, 2017/by Attorney Rick Morin

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