How can I fight debt collection and where do I begin? 6 Answers as of August 21, 2015

We recently found out we are being sued for an unpaid private "education" loan. We haven't received the summons (sent out Feb 3rd), and found out about the suit through another letter from a lawyer, and when we called the court they told us about the pending civil case. The loan was taken out in 2008 through US Bank. It was sold in 2009 to Asset Acceptance LLC. We never were able to make any payments on the loan. The loan had a "drop-off" date of 2016, and we also though there was a statute of limitations of 6 years on collecting debt, so we are wondering if it is possible to let the loan expire. We've looked into bankruptcy, but would like to avoid it if it is possible for this debt to expire, so we have a few questions: -What is the statute of limitations on private "education" loans, and how can we find out when the loan expires? -Is it possible that when the bank sold the loan the expiration date was pushed back? -If we try to negotiate with Assets Acceptance, will that change the expiration date? -If we don't get the summons, how long before the case can move forward and a judgment is issued? -If the case does move forward (and a judgment is issued/wages garnished/etc.) will it be too late to file bankruptcy to eliminate the debt?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If they have already filed the "drop off date" will not occur. That is the deadline to file suit against you.
Answer Applies to: California
Replied: 8/21/2015
Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
You need to have the papers examined by an attorney. We have seen some private student loans that we think are governed by a five year statute and some that are governed by a ten year statute. There are also issues as to whether the plaintiff can show it owns the debt.
Answer Applies to: Illinois
Replied: 8/19/2015
D.J. Rausa, Attorney at Law | D.J. Rausa
An answer to the lawsuit is not due until such time as there is service of the summons and complaint. However, you have to be very careful in this regard because sometimes a Proof of Service may be slipped in and then a default requested. The statute of limitations has to be raised as an affirmative defense. It is 4 years. You calculate the running of the statute of limitations from the day of the last payment, or the expiration of any deferment period. The selling of a loan does not change the default date or the statute of limitations. A bankruptcy can always be used to address a debt, any debt. If a judgment is obtained, a bankruptcy can stop any wage garnishment. The elimination of student loans in Bankruptcies are very fact specific and require detailed analysis by a competent attorney.
Answer Applies to: California
Replied: 8/19/2015
Scott Goldstein | Scott Goldstein
Unfortunately you have been sued therefore the statute of limitations no longer applies. Moreover, this appears to be a student loan debt, therefore you cannot discharge it in bankruptcy absent a very difficult showing of undue hardship.
Answer Applies to: New Jersey
Replied: 8/19/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
In NY the statute of limitations is 6 years, but we have to fight it if you get served. It will be considered uncollectable debt.
Answer Applies to: New York
Replied: 8/19/2015
Click to View More Answers: