What If I’m Being Sued for My Loans?

Immediate Action Steps When Facing a Student Loan Lawsuit

At The Independence Law Firm, we regularly help clients who are being sued for their student loans. If you’ve been served with lawsuit papers, don’t panic—but DO act quickly. Filing bankruptcy can stop the lawsuit immediately and potentially lead to discharging the very loans they’re suing you for.

First Things First: You Have Rights and Options

Being Sued Doesn’t Mean You’ve Lost

• Lawsuits can be stopped through bankruptcy
• Default judgments can be avoided with quick action
• Wage garnishment can be prevented before it starts
• You can turn defense into offense by seeking discharge

The Independence Law Firm Advantage

We transform your position from defendant to empowered debtor:

• Stop the lawsuit immediately
• Shift to federal bankruptcy court
• Pursue discharge of the loans
• Take control of the situation

Understanding Student Loan Lawsuits

Who’s Suing You?

Private Student Loan Lenders:

• Banks and credit unions
• Navient, Sallie Mae, others
• Collection law firms
• Debt buyers who purchased loans

Federal Loan Lawsuits (Less Common):

• Department of Justice
• Guarantee agencies
• Collection agencies
• State attorney general offices

Why Lawsuits Happen Now

• Statute of limitations pressure
• COVID forbearances ending
• Aggressive collection cycles
• Debts sold to collectors

The Immediate Power of Bankruptcy’s Automatic Stay

What Happens When We File Your Bankruptcy:

Within 24 Hours:

• Lawsuit must stop immediately
• No new legal actions allowed
• Court proceedings frozen
• Collection calls must cease

Legal Protection Includes:

• No judgment can be entered
• No wage garnishment can start
• No bank levies permitted
• No property liens (in most cases)

Violating the Stay = Serious Consequences Creditors who continue lawsuit activities face:

• Contempt of court
• Monetary sanctions
• Damage awards to you
• Attorney fee payments

Timeline: From Lawsuit to Relief

If You Haven’t Been Served Yet:

Best Case Scenario – File Before Service

• Prevents lawsuit from proceeding
• Avoids service of process issues
• Cleaner bankruptcy case
• Maximum strategic advantage

If You’ve Just Been Served:

You Typically Have 20-30 Days to Respond

Day 1-7: Emergency Consultation

• Review lawsuit documents
• Assess discharge potential
• Determine bankruptcy strategy
• Begin document gathering

Day 8-14: Rapid Preparation

• Complete bankruptcy paperwork
• Gather financial documents
• Prepare filing strategy
• Finalize attorney representation

Day 15-20: File Bankruptcy

• Stop lawsuit immediately
• Notify all parties
• Begin discharge process
• Breathe easier

If Default Judgment Already Entered:

Still Not Too Late

• Bankruptcy can void certain judgments
• Wage garnishments must stop
• Some actions can be undone
• Future collection stops

Strategic Advantages of Being Sued

It Can Actually Help Your Discharge Case:

Demonstrates Inability to Pay

• Being sued shows genuine hardship
• Creditor already acknowledges non-payment
• Strengthens undue hardship argument
• Shows good faith wasn’t enough

Creates Urgency for Resolution

• Motivates faster bankruptcy filing
• Forces creditor engagement
• Can expedite negotiations
• Clear deadline for action

Simplifies Your Decision

• No more wondering “what if”
• Creditor forced your hand
• Clear need for legal protection
• Justified defensive action

Types of Lawsuits We Stop

Private Student Loan Lawsuits

Most Common – Often Dischargeable

• Contract breach claims
• Promissory note enforcement
• Guarantee enforcement
• Collection agency suits

Why These Are Often Vulnerable:

• Paperwork problems common
• Chain of ownership issues
• Statute of limitations defenses
• Discharge more likely than federal

Federal Student Loan Lawsuits

Less Common But Serious

• Administrative wage garnishment proceedings
• Tax refund offset notices
• Social Security garnishment
• Federal court collection actions

Special Considerations:

• Government has more tools
• But also more programs
• Bankruptcy still stops collection
• Discharge possible with hardship

What the Lawsuit Papers Mean

Summons and Complaint Decoded:

The Summons:

• Your deadline to respond
• Court information
• Case number
• Don’t ignore this!

The Complaint:

• Amount they claim you owe
• Loan history allegations
• Interest and fee claims
• Legal theories

What They’re Seeking:

• Money judgment
• Interest and attorneys’ fees
• Wage garnishment rights
• Asset seizure authority

Defense Strategies Beyond Bankruptcy

While Preparing to File, We Can:

File Answer to Buy Time

• Deny allegations appropriately
• Assert affirmative defenses
• Demand strict proof
• Challenge standing

Common Defenses We Raise:

• Statute of limitations
• Lack of standing
• Improper documentation
• School fraud/misrepresentation

Negotiation Leverage

• Bankruptcy threat is powerful
• Creditors prefer settlement
• Partial payments possible
• Discharge always looming

The Cost of NOT Acting

If You Ignore the Lawsuit:

Default Judgment Consequences:

• Wage garnishment (up to 25%)
• Bank account levies
• Property liens possible
• Credit destruction
• Collection for 10+ years

Limited Options Post-Judgment:

• Harder to negotiate
• Bankruptcy still possible but complex
• Garnishment difficult to stop
• Years of financial pain

Emergency Action Plan

If Served Today, Do This:

1. Don’t Panic – You have options
2. Calendar Your Deadline – Usually 20-30 days
3. Gather Lawsuit Papers – Bring everything
4. Call Us Immediately – Time is critical
5. Start Document Collection – We’ll provide list

Documents to Locate:

• Lawsuit papers (all pages)
• Original loan documents
• Payment history
• Income documentation
• List of all debts

Why Choose The Independence Law Firm

Lawsuit Experience Matters:

• Hundreds of lawsuits stopped
• Know creditor attorneys
• Understand local courts
• Fast filing capability

Dual Strategy Expertise:

• Stop lawsuit immediately
• Pursue loan discharge
• Maximum leverage creation
• Best possible outcome

Emergency Filing Capability:

• Same-day filings possible
• Weekend consultations available
• Rapid document preparation
• Court notification systems

From Lawsuit to Freedom: Your Path

Week 1: Stop the Bleeding

• Emergency bankruptcy filing
• Lawsuit frozen
• Collection stops
• Breathing room begins

Months 2-6: Build Discharge Case

• Adversary proceeding filed
• Settlement negotiations
• Evidence gathering
• Position strengthening

The End Result:

• Lawsuit dismissed
• Loans potentially discharged
• Fresh start achieved
• Financial freedom

Don’t Let Them Win by Default

Being sued for student loans is scary, but it’s not the end—it might actually be the beginning of your path to freedom. The creditor’s aggressive action can become your opportunity for discharge.

The Independence Law Firm Promise:

• Stop the lawsuit fast
• Protect your wages and assets
• Fight for loan discharge
• Guide you to freedom

If you’re being sued, every day matters. Contact us immediately for an emergency consultation. We can often file bankruptcy within days, stopping the lawsuit and starting your journey to student loan freedom.

Don’t let fear paralyze you. Let their lawsuit become your catalyst for finally addressing these loans permanently. Call us now.