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What Bankruptcy Filers Can Learn from the Navient Settlement

 Posted on August 11, 2023 in Debt Collection

TX bankruptcy lawyerMost of the time, when consumers confront Big Business and Big Finance, courageous consumers may benefit from being featured in informative news coverage – which can help to highlight their struggles and allow similarly-situated individuals to understand that they are not alone – but they do not tend to come out on top. Yet, there are times when "the little guy" triumphs, and these wins should not be understated. For example, abuses against numerous bankruptcy filers – who are ordinarily protected by the automatic stay and the discharge of their qualifying debts – were recently addressed in a big way when Navient settled with a number of filers for $198 million.   

The Settlement

Navient Corp. is a private student loan provider. When many of its borrowers were confused as to why Navient Corp. kept collecting on their debt, despite the fact that their debt with the company was discharged in bankruptcy, the borrowers sought legal assistance. Ultimately, they realized that Navient was falsely claiming that the debt had not been discharged and that the company was unlawfully collecting on debts that were no longer the borrowers' responsibility.

The Bigger Picture

Illegal collection activity is not unique to Navient. Whether debtors who have not yet filed for bankruptcy are being harassed, current filers are experiencing violations of the automatic stay, or previous filers are being held to account for discharged debt, illegal collection practices happen far more often than one would like to assume. As a result of this reality, debtors, bankruptcy filers, and former filers need to both understand their rights and seek to enforce them when they are being violated, or offending parties will simply keep doing what they are doing.

Seek Personalized Guidance from a San Antonio Bankruptcy Lawyer Today

If you are feeling stressed and confused because creditors and collections agents are pursuing action that you believe should be barred, it is important to seek legal guidance. Certain restrictions apply to creditors generally and a host of specific restrictions apply to creditors once a bankruptcy case has been initiated. Creditors who do not follow the letter of the law can be subjected to negative consequences. Under certain circumstances, debtors may even be able to sue for damages.

To learn more, schedule a free legal consultation with Law Offices of Chance M. McGhee by calling 210-342-3400 or reaching out via the firm's webpage. Once you have spoken with a reputable San Antonio, TX bankruptcy lawyer about your circumstances, you can feel confident about making whatever informed decisions are right for you at this time.



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