Mcherie87 Posted April 15, 2019 Report Share Posted April 15, 2019 I have just been served with a summons (20 days). Back story, got a loan through Lending Club for 12,000 back in 2015. I made the first payment on the loan and within the next month I had complications with my pregnancy and had to go in bed rest. I had defaulted in my loan. Fast forward to present, my credit has been suffering and I’m still trying to get on my feet with my son being disabled. Can anyone help me with my options are? Bankruptcy? Arbitration? Settlement? I am lost and don’t know where to start and with 20 days counting down... I’m stressed. Please and thank you!! Quote Link to comment Share on other sites More sharing options...
nobk4me Posted April 15, 2019 Report Share Posted April 15, 2019 21 hours ago, Mcherie87 said: Can anyone help me with my options are? Bankruptcy? Arbitration? Settlement? I am lost and don’t know where to start and with 20 days counting down... I’m stressed. Please and thank you!! Bankruptcy: do you have other debts (medical bills, maybe)? Do you have assets you would lose in a Chapter 7? Can you file a Chapter 7, or would you be forced into a Chapter 13? It wouldn't hurt to consult with some bankruptcy attorneys. Your first consultation should be free. But beware, they are likely to recommend BK even if there are better alternatives or if BK isn't the best option for you. There are costs to BK as well. Filing fees, attorney's fees. If you can afford them, maybe it would be better to put that money toward a settlement. Arbitration: Velocity is a JDB, right? Is there an arbitration clause in the OC's agreement? If so, arbitration is the best weapon against a JDB. Best info is here: Settlement: do you have money to settle with? Note you are likely to get a better settlement if you have some leverage over them, such as the costs of arbitration or violations of consumer laws. The 20 days: one thing you must do is answer the lawsuit before the deadline. I would just deny all their allegations except your name and address. You can always settle, do BK, or do arb later. But answering will buy you some time to thoroughly investigate your options. Quote Link to comment Share on other sites More sharing options...
fisthardcheese Posted April 16, 2019 Report Share Posted April 16, 2019 Have they sued you? Quote Link to comment Share on other sites More sharing options...
nobk4me Posted April 16, 2019 Report Share Posted April 16, 2019 2 hours ago, fisthardcheese said: Have they sued you? She's been served with a summons, so yes, she has been sued. Quote Link to comment Share on other sites More sharing options...
fisthardcheese Posted April 16, 2019 Report Share Posted April 16, 2019 3 hours ago, nobk4me said: She's been served with a summons, so yes, she has been sued. Oh, I see it now, thanks. Been one of those days. I would answer within your 20 days denying all of their allegations and listing the affirmative defense of Lack of Subject Matter Jurisdiction due to a private arbitration clause that you are evoking. I would follow this up, as soon as you can, by filing a Motion to Compel Arbitration. Using JAMS arbitration should make this thing go away for $0. Quote Link to comment Share on other sites More sharing options...
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