What happens to a loan if I dont use it and can no longer pay for it? 3 Answers as of July 31, 2011

I am being sued for a loan I did not use. It was strictly for medical treatments only but my checking account was hacked into, my stolen and I called to cancel the loan since I could not pay it back. I did not sign any papers and I was not treated by any doctors. I cannot afford a judgment or garnishment of my wages or I will lose my job. I am a teacher with severe Rheumatoid Arthritis and cannot afford this action.

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Law Office of John C. Farrell, Jr.
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
It sounds like you may be a victim of identity theft. There are a number of situations which you as a consumer can be wrongfully sued on for charges that you did not authorize. The non-authorized use of your checking account is criminal. I would suggest filing a report at your local police department and calling the bank to put them on notice. I would even meet with someone in authority at the bank to address this issue regarding your checking account. With respect to the loan that was never used, disputing it is certainly your right, however, it is very time consuming and can be frustrating if you are hitting dead ends with the lender and other parties involved. This matter should not even see the light of court and if it does can likely be dismissed on its merits once the proper evidence and documents are filed with the court. With respect to losing your job, I would not be overly concerned with that since being a debtor is not grounds for termination and there are rights in place for you on that end. Lastly, wage garnishment will only occur in MA as a post-judgment remedy.
Answer Applies to: Massachusetts
Replied: 7/31/2011
Law Office of Katrina Washington
Law Office of Katrina Washington | Katrina Washington
In order to answer your question your question fully, I would need to speak with you. This email communication does not create or represent an attorney-client relationship. However this is a brief answer to your question. You will need to file an Answer to the Complaint immediately. If you ignore the lawsuit, the company will be able to obtain a judgment against you. Once the company obtains a judgment they can garnish your wages and bank account.
Answer Applies to: Alabama
Replied: 7/29/2011
The Grundy Law Firm, PLLC
The Grundy Law Firm, PLLC | Elvin Grundy
Never ignore a debt collector's lawsuit. You have rights and valid defenses that this law firm leverages against unscrupulous debt collectors. Do not go it alone. Flexible payment plans available. Don't delay.
Answer Applies to: Arizona
Replied: 7/29/2011
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