Our client was served with a summons and complaint by
Forster & Garbus on behalf of Citibank, the alleged original lender of a line of credit
to our client. Forster & Garbus alleged that our client owed approximately
$121,000 to Citibank. We immediately submitted our answer with affirmative
defense to protect our client from a default judgment. We submitted discovery
requests and learned that this alleged debt was second or third in line
behind a first mortgage. Because Citibank is an original creditor most
of our assignment defenses would not apply in this case which made the
case more difficult.
After numerous negotiation discussions with the attorneys at Forster and
Garbus, we were able to reach an out of court settlement which saved our
client over $60,000 and to set her up on a tiered payment plan over 8
years which would make the payments affordable for the client. This would
also prevent a judgment against the client, and any garnishment activity.