Southwood Financial LLC sent me a summons.
Posted by viviana1994@reddit | studentloandefaulters | View on Reddit | 29 comments
Hey all, I was served in person on Friday for my student loan saying I owed Southwood financial, or “southwood financial trust” $30k for not paying my sallie mae loans. I did contact an attorney who pretty much told me I have to pay them the full amount or ignore it and let it garnish my wages. He said I need to ask someone to give me this money if I don’t have it, which if I did have the money I would have been paying for it in the first place.
I watched a youtube video about the same exact situation that i’m in. Same papers, same companies, everything. I’m circling things, jotting notes down, thinking of ways to get my attorney to try and fight this for me, and he claims that there is no way. Either pay them, or ignore them.
I’m at a loss. I have a couple friends who defaulted on their sallie mae loans and never heard a word from them or any debt collector. I feel like i’m going to crash out. Oh, also, I have an appointment with hematology/oncology in a couple weeks to see if I have lymphoma or not, which is cancer for anybody who doesn’t know. So that’s also super cool.
viviana1994@reddit (OP)
Update: I reached out to a different lawyer. We discussed chapter 13 bankruptcy, and I think that is the route we are going to go.
BrawnyTawny@reddit
Don't bother doing that! That's a last resort? Have you even sent a debt validation letter in the thirty day time window to dispute the documentation of the debt? You have a right to do this under the Fair Debt Collection Practices Act!
Don't file for any sort of bankruptcy protections until and unless you lose in court and they obtain a judgement against you hire a consumer law attorney at a flat fee rate to file and answer, show up to court, and have your attorney put the burden of proof of them that they have the documentation that proves that they have the right to collect on this debt it's got to be pristine but basically no errors if they cannot prove that in court which because of the bad documentation of most private debt in this country then they lose through the lack of standing and your attorney can issue a motion to dismiss the case and throw it out of court. You should've done your research before you strategically defaulted and waited out the statutes of limitations!
dannydelco@reddit
That sounds good in theory, but realize it's very state dependant. some states are more consumer friendly than others. I'mnlicnesed in multiple states and would have a hard time winning this case in one state but not the other. Simply put, it's not that easy and never a sure thing. The video has a lot of good info and arguments, but once it's in court there is always a risk that one can lose.
Fragrant_Can3275@reddit
I just researched all the court cases Southwood Financial filed in my state. Most of them are gonna get dismissed. They can't provide stable documentation. Some of the cases are just getting dismissed by judges because they arent filing properly with the courts. They are dropping the ball on this because they bought it in bulk from Sallie Mae and now they are scrambling.
Lexafaye@reddit
Can you say more about “not filing properly with the courts” I am in the same situation with them unfortunately
FluctualLight@reddit
Don't bother doing that until and unless you've at least sent a debt validation letter within the thirty day window to validate the debt and dispute the documentation of it! You have a right to do this under the Fair Debt Collection Practices Act!
Fragrant_Can3275@reddit
Okay. I am currently doing full research on this and my best advise is do not admit to being responsible for the loans, at all. I just looked up every single case that Southwood Financial filed in my state against Sallie Mae student loan borrowers and most of them are getting or gonna get dismissed. They are completely dropping the ball, unable to provide proper documentation. One case they didn't even submit proof to the court that the defendant received notice and the judge is dismissing it! That's embarrassing. Deny, deny, deny people!!
viviana1994@reddit (OP)
It’s too late and I’m in ch 13 bankruptcy
dannydelco@reddit
This varies tremendously by state and the filing law firm. You can’t rely on this happening. In some states they are well prepared, filing appeals, bringing witnesses to court etc. That is great that in your state they must have a weak collections firm.
ExtensionCordStrnglr@reddit
I got a letter for a 13k balance earlier this month. Same company and situation. What I don’t understand is all our other Sallie Mae accounts are and always were current. I have no data on this Southwood company taking over our loan and they never attempted to contact us. I filed an answer to the complaint pro-se (without a lawyer, self representing) and plan on counter suing with a lawyer when/if it gets pressed further. Check your PMs
dannydelco@reddit
Counter sue on what grounds?
RecordingMountain585@reddit
Its been 4 years now since i defaulted, so in 2 more years the statute of limitations will pass. A debt collection company owns the debt, hope they don't sue. Anyways I live abroad so it complicates the process.
Flatulence_Tempest@reddit
How could they sue you if they can't serve you?
Fragrant_Can3275@reddit
They could try but without the serve notice the judge will dismiss the case after a certain amount of time has passed.
RecordingMountain585@reddit
There are alternative methods to serve someone, but it may not be worth it to sue someone who lives abroad as they would have no wages in US to garnish.
Fragrant_Can3275@reddit
Debt collectors limitations are structured based on their licensing. they have to have specific licensing in the state you reside in to collect the debt. I think that also applies to foreign residence and foreign income. You should be safe, Southwood Financial I think would stay domestic.
viviana1994@reddit (OP)
I am being sued unfortunately. It couldn’t have come at a worse time.
RecordingMountain585@reddit
Unfortunate situation.
morbie5@reddit
Get a new lawyer or better yet try to negotiate with them yourself. Make sure you show up at the court date
What state are you in?
viviana1994@reddit (OP)
michigan
Fragrant_Can3275@reddit
Look up the states loan license laws. I just checked on NMLS and south wood financial does not have listened to service loans in Michigan. Ask them for proof of license to be a debt collector and loan servicer in the state of Michigan. If they can't provide that then I think u can counter sue.... Idk I'm not a lawyer.
morbie5@reddit
I'm in Michigan also actually.
https://michiganlegalhelp.org/resources/money-debt-and-consumer-issues/overview-of-garnishment
MI does allow wage garnishments, creditors can also try seize your state tax refund, and also try to get a bank levy.
I saw in your other comment you are thinking of a chap 13 bankruptcy?
Dramatic-Ad-4763@reddit
Chapter 13 bankruptcy saved me. 7 years later my private student loans got written off.
Aggravating_Storm493@reddit
When did you default?
And every state has heir version of a legal aid, if you meet the income threshold. Since this stuff is already mind fucking, adding another expense when already underwater fucking blows. So maybe you can contact your state’s legal aid services. I used one for my own chapter 7 bankruptcy a few years ago and going though legal aid literally saved my life since I was broke as shit.
VaderVihs@reddit
Southwood seems to be very aggressive. You pro need a new lawyer though. He's not wrong that you will likely have to pay once it's gotten to this point but he should definitely be advocating on your behalf for a plan or amount that actually works for both parties
viviana1994@reddit (OP)
I did talk with a different lawyer today. We are exploring chapter 13 bankruptcy
No_Face_3201@reddit
Bankruptcy unfortunately can’t get you out of student loans. Same situation but $20k and looked that up earlier this year
morbie5@reddit
Not true. Both federal and private student loans can get discharged in bankruptcy. You have to meet a certain test and that can be very hard to meet.
Are your loans federal or private?
BrawnyTawny@reddit
Don't bother doing that until and unless you've at least sent a debt validation letter within the thirty day window to validate the debt and dispute the documentation of it! You have a right to do this under the Fair Debt Collection Practices Act!
Also, have you tried to get a consumer law attorney to agree to file an answer and come with you to court to put the burden of proof on the debt collection agency to prove the documentation and their right to collect on this debt?