Can you still negotiate credit card debts if you’re being sued?
I have unpaid credit card debt.
Can you negotiate a credit card debt if you are being sued?
—Darby
Yes, you can negotiate and settle a credit card lawsuit. In some cases, if you cannot raise enough money to settle in a lump sum, you will be able to set up affordable payment arrangements to keep from being garnished, or your bank account levied.
Being sued for a credit card debt happens at different stages of collection. Are you being sued by a collection law firm on behalf of your original creditor?
Lawsuits in the first stage of credit card collections (your account has never been sent to a debt collector) is not that common, but it does occur. Most of the time (but not all), you have at least 6 months of nonpayment before the risk of being sued begins. The risk of being sued increases incrementally from there. Your original credit card bank may target your account for placement with a collection attorney based on several factors. The following is not an exhaustive list, and not all that helpful to you (since you appear to already have been served a lawsuit), but others reading this later may get some benefit from it:
- The credit card is new, saw heavy use and was nearly maxed out, then payments were missed.
- The balance on the credit card is mostly made up of a balance transfer that was recently made (last 12 months, and with some creditors within the last 24 months).
- Recent purchases using the card (last 6 to 12 months) make up a significant portion of the balance owed on the credit card.
- Use of a software package or manually identifying an account for placement with a debt collection attorney with authorization to sue because the account analysis shows you are paying other unsecured creditors (other credit card bills).
- Creditor collection trends and policies.
When negotiating a collection lawsuit on a credit card debt with your original creditor you can settle with a lump sum amount of money, or set up monthly payments you can afford on the balance. It is possible to get some of the balance negotiated down with lower monthly payments (time to pay), but that is not a frequent option in a lawsuit situation with your creditor.
Negotiating and Settling a Credit Card Debt When You’re Being Sued by a Collection Attorney Representing a Debt Buyer is Different
Debt buyers buy defaulted accounts in bulk from credit card issuers. They pay different amounts for the legal rights to the debts they buy. The “fresher” the debt (6 to 12 months in default) the higher the purchase price. As defaulted credit card debts age, the less it costs to buy them. Credit card debts that get charged off by your original creditor are often bought and resold several times. The cost to purchase debts that have already been sold once or twice will be much less than was paid originally.
Debt buyers invest in unpaid debts and are taking a risk that they can get troubled credit card borrowers to pay up. Debt buyer collection has proven to be profitable. They don’t get people to pay on all of the accounts they buy. Not by a long shot. They only need to collect enough money on the portfolio to cover the cost of the purchase, the overhead to collect, and meet projected portfolio profits.
Debt buyers settle credit card debts they own for less than the total you owe on the account. They will either collect debts using in house debt collectors, assign accounts to a subsidiary collection agency, hire another debt collection firm, or place accounts with attorney debt collection law firms they have relationships with.
There are many debt buyers out there. Large and small. Some specialize in different areas of debt. For example, some buyers only buy up delinquent credit cards; some buy only medical bills, deficiency balances on repossessed auto loans, and with the housing market crash – some now focus on buying up defaulted HELOC and second mortgages. Credit card debt buyers and the debt collectors they hire will, more often than not, be identified from a list of “usual suspects”. The attorney firms used to collect debts are often major players in the debt collection industry, but there are new additions to the list of attorneys collecting debt every year.
Settling Credit Card Debt When Sued by an Attorney Hired by a Debt Buyer
Debt buyers, the debt collectors and collection law firms they hire, use some similar criteria to identify who they will sue in order to try to get paid. They don’t really care if the credit card balance they are collecting on was from balance transfers, large purchases made prior to when payments were stopped etc. They do use software and manual methods to identify accounts that show an increased likelihood of getting paid the full amount when going through the expense of suing you.
The attorneys and debt collectors hired by a debt buyer often work on a contingency (original lenders and credit card companies hire collectors on contingency too). This means they get paid when they get you to pay. For this reason, they have developed different methods for evaluating which accounts will have the highest likelihood of a return – getting you to pay. This sophistication is often referred to in the industry as “skip tracing” and it has different levels. Some software compares what can be seen on your credit reports weighed against whether you are current with a mortgage, other loans, even the affluence of your zip code, or whether they have an attorney debt collector relationship in your state, or within a couple county distance.
Getting the law firm suing you to agree to a lower negotiated balance pay off and settle the debt will depend on a host of things.
Are you being sued by the original creditor or a debt buyer? Look on the court papers you received for who the attorney identified they are working for.
Are you experiencing personal financial hardships that are verifiable – unemployment, underemployment, medical or health concerns, are you on a limited income from federal benefits, are you currently being garnished from other unpaid debts…. depending on the answers to these questions, the amount you pay to settle the account, or the amount of the monthly payment you may consider agreeing to can be impacted.
When it comes to being sued by a debt buyer, you may want to consider defending against the lawsuit as an alternative to settlement or payment arrangements.
Debt buyers typically get a scant amount of detail about your debt from the creditor they buy it from. If your account was purchased and then resold again, the degree of separation from your original lender is even more of a problem.
Debt buyers may be limited in the way they can back up their claim about your debt in court. They often have an excel spread sheet that lists all the accounts they purchased in the portfolio that had your account in it. They may only have access to your name, account number, social security number, the balance owed at the time of sale, your address and phone number, where you work…. In other words, just the basic details.
Debt buyers suing people in court over credit card debts are playing a law of averages game. The vast majority of people don’t file an answer to the lawsuit with the court. There are many reasons a lawsuit will be ignored and the debtors head placed firmly in the sand. Guilt over not being able to pay up to that point, fear about the court process, uncertainty about the options to manage through an old debt that has escalated to this point. When the lawsuit is ignored, a default judgment is entered because the court assumes the legitimacy of the debt, and that the balance being collected is all accurate and can be backed up by the plaintiff – the debt buyer – because there was no challenge or defense to the lawsuit.
Debt buyers, and the attorneys they hire to collect for them using the courts, are being called out for presenting the courts with robo signed affidavits similar to the mortgage foreclosure fiasco. They are often unable to get the data they need to back up their claims sufficiently in court. They are often unwilling to go to the expense of having experts and those most knowledgeable about your account flown out to testify. Sometimes the simple fact you filed a credible answer to the complaint with the court is enough to make a debt buyer settle more favorably, or to even drop the lawsuit and go away.
Getting Your Own Debt Defense Attorney
There is a cottage industry of consumer attorneys who have been having good success in defending people against debt buyer lawsuits. They are succeeding by raising challenges to the claims made by the debt buyer and the collection attorney. It seems their claims cannot be easily substantiated by the excel spread sheet they purchased from the original creditor or another debt buyer. There is a whole lot more to it than that, but that’s detail that you can discuss with a creditor defense attorney.
Hiring an attorney to defend you against a credit card lawsuit costs money. You will have to weigh that cost against what it may cost to settle the account. The smaller the balance you are being sued for, under say $2500.00, the less sense it may make to defend the suit from a pure economic basis. Also, many attorneys who are not familiar with debt buyer lawsuits will just tell you “pay the bill”, or “I can settle it, or get payments set up for you”. Well, you or I can do that too. Sometimes, what you really need, is an attorney already familiar with defending against debt collection lawsuits, and there just aren’t that many of them out there.
This page is a good way to connect with the experienced attorney resources you might need. Post more about your situation in the comments below and I can send you resources I know of via email. You can also call me through the hotline. Regardless of what your motivations and ability to deal with being sued for collection are, making a call to me or to a debt defense attorney in your state will help you reach an informed decision about what to do.
When it comes to settling a collection lawsuit with a debt buyer, we can provide one on one support. We cannot help you with legal pleadings and the like, just the settling, or payment arrangement part. You may have additional unpaid bills and have bounced back enough financially in order for us to help you put together a plan to handle a collection lawsuit and the other bills in order to prevent more aggressive collections in the future.
If your financial situation has deteriorated to a place where you are being sued for unpaid debt, and you have multiple debts that you are unable to pay, it may be time to consider bankruptcy as an option to manage the situation, and even get a fresh start in a chapter 7.
I took the time to answer your question with the detail provided above because there was not much background information provided with your question, and also because others out there searching for answers about settling a credit card debt lawsuit might find some of the information useful. You, and anyone reading this, are welcome to post comments and questions below.
Not sure where to start? Click on the big blue “Get Debt Help” button.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Hello, I am being sued for 2668, and I am working on having it settled for 2200. Originally the debt was about 1900 and i had about 4k in my account but they froze all of it even with an ill child that I desperately need to take to the doctor. My question is, can I countersue for withholding additional funds that I needed to take care of my 1.5 yr old? Also, will they release the rest of the money or will I have to count that as a loss? ( I have moved to different cities in Texas the course of 8 years and the original account was for SEARS then i got sued in 2017 and just now saw my finances affected in 2024).
Also. I contacted an experienced lawyer dealing with Midland LLC cases and he just advice to pay. I said yes I am not denying I will do so but even in Texas it is illegal to turn off the water service if you have a toddler in the home so my situation compares to that due to the fact that my account to buy food for her was affected.
Any feedback is appreciated thank you in advance.
Texas is one of the better states for protections from judgment creditors accept for your bank account. You could petition the court to show the bank levy they got creates an undue hardship. Contact the court clerk to find out how to go about that.
Hello, I did what you recommended and this is the response I got back:
Ms. Perez,
All I can tell you is that Midland Funding LLC did record your judgement in the official public records.
Once you pay them, they will record a document to release that judgment/lien against you.
I don’t know about a hold on a bank account. We just record the documents that are sent to us.
Thank you,
Alison Haley
Midland County Clerk
You may want to reach out to a low income legal aid office in your area to talk about your rights and options in this situation. Your court clerks reply was not all that helpful.
I am being sued by a debt buyer who purchased my debt from a collection agency representing a credit card I defaulted in payment on. The amount is $10017.10. Charge off date 11/30/22. It looks like it was purchased between 2/2023 and the only letter I have is from May 2023 (prior ones may have been tossed thinking it was junk mail). I was just served on 3/21/24, lawsuit filed 2/28/24. I thought about talking to a debt collections lawyer, but I think it might make more sense negotiating directly with the lawyer.
I’m trying to figure out the right approach to negotiate a settlement. Do I have enough leverage to negotiate 30% of the total? I am mostly current on the credit cards that I was able to catch before they went to collections, I have one collection on my credit report (different card) and a recently reported late payment on one of the credit cards (60 days late).
I have a small business, but unfortunately, very little income and barely surviving due to poor sales the past year and especially the last few months. There is no way I can afford to pay the total that I owe, but I may be able to get help from a family member if i can get it down to a more reasonable amount.
I forgot to mention the Debt Buyer is CKS Prime Investments, and they have retained mandarich law group to file the lawsuit.
It is not common to get an active collection law suit settled for 30% of the balance. You are typically looking at 50% and higher, and that is often because you fight the suit and get a better outcome.
I would encourage you to find an experienced dent collection consumer law attorney in your state.
Being sued by Gurstel in Utah (on behalf of a debt buyer) for about $6500 on a 4 year old loan. I was prepared to file and answer and ask for chain of custody of the loan, etc. but a lawyer who gave me a brief meeting today says it will be fruitless and I’ll be better off trying to negotiate immediately. Thoughts?
Who is the debt buyer?
What state are you in?
Genesis Recovery Services. I’m in Utah
Many attorneys, who do not regularly defend against collection lawsuits, tend to share the opinion of the one you spoke with. But experienced debt defense attorneys in Utah are the ones I would be more inclined to seek feedback from. They are more familiar with the difficulties some debt buyers have in proving out their claims in court.
Discover Card is suing me. They initially sued me for credit card debt earlier this summer and after I submitted my Answer and Response, their attorney did not respond again, therefore dismissing the case but doing so with prejudice so it opened for them to file again. In November they filed again, almost exact same information. This time they made little effort to serve me, sending someone while I was gone for work and never leaving any contact information for me to reach him. He would ring the doorbell and leave. This time they did not go through Sheriff, come to my job, or really make any effort to serve me. They filed 11/29/22 and by 12/08/22 or 12/13/22 filed diligent efforts to try and serve me. What do I do? I am prepared to file an answer and response to defend myself, but they are trying to speed things up in an effort to try and get a default judgement against me. I filed a complaint with FCPB to which they responded and stated there is no contractual agreement as they claim the application was online and given it was my address on it, it has to be my debt. I have been trying for months to get verification of the account as mine through Discover and through the credit bureaus to only receive the same statements over and over or to be told I am not entitled to that information.
I should note that I live in Iowa. Raush, Sturm, LLP is the Attorney’s for the debt collection as it’s listed as “charged off” on my credit report. Creditor whom debt is owed is listed as Discover Bank c/o Discover Products Inc. They filed 6/20/22 and it was dismissed on 9/12/22 due to Discover’s failure to respond to my Answer and Response. Costs were assessed to Discover.
Diligent Search was listed on 12/8/2022 but filed on 12/13/22. Will they have to publish now? Will it be dismissed if I am not served? Do I respond? I don’t want this to be ignored.
I would talk with an experienced debt collection consumer law attorney in your state about this. They will be able to help you understand your rights and timing of alternative service.
Hi guys, getting sued for a credit card bill, just received a letter. Don’t have the money. What do I do next.
Who is the creditor suing?
What is the name of the collection law firm suing?
What is the amount?
What state are you in?
I had the opportunity to work with Michael recently on a debt situation. All I can say is phenomenal! Hands down the best help I received. My situation: Owed close to 33K to Gurstel Law. Understood Gurstel was difficult to work with and obtain a satisfactory settlement. Going through CRN I was able to settle my debt (within 2 weeks) for 55% of what I owed. Wow, I couldn’t believe it. Prior to reaching out to Michael, I was hesitant , possibly like others would be. I didn’t know what direction this would take but after due diligence on videos and comments/reviews etc., I decided to pursue and I’m glad I did. Had a phone call with Michael and everything was explained up front. Michael has plenty years of experience and knows what he’s talking about. I coordinated with Jared as well and he was absolutely wonderful to work with. Great phone etiquette, easy to speak with, and also extremely knowledgeable in all aspects of what had to be accomplished. There was no way I could do any of this on my own without Michael & Jared’s help. Would I do it again if I was in that position (not saying I intend to be)? Absolutely. Thanks gentlemen for all the help.
Can you please recommend someone who I can call for help in negotiating with Hunt and Henriques. It’s a B of A credit card I gave to my husband to use years ago and when we were affected by Covid he stopped paying them because he couldn’t afford too. Now I have received paperwork stating they are going to put a levy on my bank account. Please help!
It sounds like they already have a judgment, is that correct?
I had an old Credit one Visa card credit was 300.00 I paid that off in 2018. After I paid it they was sending letters saying that I owe interest and still owe on the card. They are trying to sue me for 872.00 and I am not paying them that because I don’t owe them.
Need help against Huntington Bank.
Suing my 95 yr old mom for $4500 cc balance she doesn’t remember ever having. Huntington is rep by Weltman
Weltman, Weinberg & Reis Co. They filed a petition in early Feb.
Should I hire her an atty?
It could be a good idea to get legal help.
What state does she live in?
When did she get served the legal papers?
Michigan.
She hasn’t been served yet.
She rec’d a letter from an ambulance chaser who must’ve found a petition with the court…
Hi. Great stuff you’ve written. Thank you. I’m helping an impoverished relative on SSDI in Florida get out of debt. She has received a lump sum back pay from SSA making this possible, but still can’t pay nearly all of it. We have settled all the more recent stuff which was very small. What is left now are several credit cards which are already charged off on her credit report and haven’t been used in just under 5 years. Each is between $500 and $1000. I’m kind of inclined to recommend she just ignore them since they’ll be off her credit report in only 2 1/2 more years. I don’t think she’ll be buying a house and I sure hope not even opening any more credit cards so it really doesn’t even matter. But is there a chance they might still sue her at this late date? By the way, she doesn’t keep records so I have no idea exactly what the debt amount actually is or how much of it was real purchases vs fees/interest or when the last payment was made. But another relative tried to help in 2019 by giving her some money so she did pay some creditors $100 at that time. The information I’m giving you is based on the random collections letters she still has. Thank you for any recommendations you can offer.
My feedback would be more targeted if I knew who the creditors are that are owed, or who is collecting and credit reporting on the debts today.
It would help to know the balances on each account too.
Some creditors and debt buyers will sue over as little as 500 dollars. Settling can prevent that.
It is important to note when she last paid because the SOL to legitimately sue in Florida is 5 years. Any accounts more than 5 years without a payment can often be left alone to age off her credit reports.
There is typically an increased chance of being sued in the months leading up to the SOL expiring on an account.
Thank you. I don’t know her last payments, but they are likely close to the 5 years. But it’s good to know sometimes the risk of being sued increased as the SOL approaches. We will call and attempt to settle. The current creditors are First Premier Bank master cards, Crown Asset Mngt, Continental Finance Corp for a reflex mastercard, and a Merrick bank mastercard. All are over $500.
Thanks. I would be targeting settlements of fifty percent or lower on those.
I cannot say any of them are non litigators.
Hi Mike
Welt Weinburg and reis co working on behalf of discover has agreed to a settlement of 50 percent of what I owe. I have the money and ready to make the payments. They did send me a written settlement s agreement however I want to make sure it’s fair agreement before I submit payment. Had a few questions before I do so. The settlement agreement letter reads:
Pursuant to your earlier conversation with a representative from our office, this letter will confirm acceptance on behalf of the above referenced current creditor the sum of $2,989.00 as settlement of the subject account. This acceptance is however contingent upon receipt of funds in this office no later than 03/18/22. Failure to adhere to the terms outlined in this settlement agreement may result in the offer being considered null and void. Please be advised that should the settlement not be completed by the date listed, Weltman is not required to renew this offer.
Please make sure remittance is marked as settled and not payment in full and include the Weltman File Number. Please Express mail funds to 965 Keynote Circle, Brooklyn Heights, OH 44131, or please call 800-589-8516 to authorize a check by phone. You may be able to pay on your account online via our web-pay website at http://www.wwrepay.com.
Please contact our office at 800-589-8516 if you have any questions concerning this matter. This communication is from a debt collector attempting to collect this debt for the current creditor and any information obtained will be used for that purpose.
Electronic check conversion: Paying by check authorizes WWR to use the information on your check to make a one-time electronic fund transfer from your account. Funds may be withdrawn from your account as soon as your payment is received. Your original check will be destroyed once processed.
Sincerely,
Weltman, Weinberg & Reis Co., L.P.A
1. Is this a fair pay agreement letter
2. Will this suffice so they can’t come back and try to sue me again for the other half since they’re agreeing to half for settlement?
3. What is the best form of payment I should utilize to pay them? Should I pay online from my bank card or bank account? Or is it best to pay via cashiers check? Or regular check? Thoughts? I’d like to settle this as soon as possible. Thanks
This is a very common settlement agreement letter.
This letter would back you up if anyone tried to continue to collect on the settled portion. I would be sure to keep this letter in a safe place along with a screen shot of the payment clearing your bank account.
I am good with paying them over the phone, or online, if you have a letter in hand like this.
Thank you so much! I made the payment today via online and I will screenshot the payment posted. Now I just need to try making a settlement with midland credit management. Do they typical settle for then than 50%. My last Payne t to the original creditor was in 2019. What do you think is my best strategy?
I suggest getting help when dealing with Midland Credit. You can schedule a call with me to talk strategy here: https://calendly.com/debtbytes/15min
I do get them to under fifty percent if you can pay in a lump sum, and if it is not with an attorney for collection.
Hi I live in the state of PA. I received a letter from an attorney Ratchford Law group in regards to an old capital one credit card in the amount of 17.333.00 I got injured then shortly after I was laid off and been on UC but have had no income since to pay capital one. What should I do to stop this from becoming a judgement against me. Could they file a judgement against me and garnish my wages? Should I call capital one to see about settlement and payment plan?
I also owe discover and have the same issues
Thanks
Wages are protected in Pennsylvania, but your bank account is at risk if they get a judgment, and a lien could be placed on your home.
Do you own a home?
You may want to look into chapter 7 bankruptcy as the least expensive way to get rid of this debt.
Settling is an option too, but you would need to pull the money together.
Check out my article comparing debt relief options.
I live in Pennsylvania. I don’t own a home. I have a bank account and I own two cars that are paid off. A 2012 ford and a 2015 Toyota Corolla. The debt was with capital one for $17,333.00. Capital retained an attorney to file a judgment in September but it hasn’t been awarded/approved yet and I didn’t get anything but a letter stating that the law firm was contacting me in efforts to collect a debt and to let them know in writing if I dispute it within 30 days. So, how can I stop them from taking my cars and from freezing my bank account? I’m currently unemployed, was on unemployment but that ended in September. I’ve been looking for work ever since.
In the mean-time,
1. should I pull my money out of my bank account?
2. Should I get my cars transferred out of my name?
3. Do you think the law firm
Would accept a settlement of 30 % of debt? If so how should I approach this?
4. What should my settlement agreement say before making any payment?
Thanks so much for your help!
If all you have received is the collection letter, but not served a lawsuit, it sounds like you have not been sued in your county civil court.
I would look up my name in the county court to see if anything has been filed and I just have not been served yet.
It is not common to settle accounts being collected by law firms for 30%.
Check out this post about settling when sued.
I have an article about what to look for in a settlement letter.
I personally would keep little money in a bank account with my social security number associated with it while there is an unresolved judgment against me.
I would also try to have little in my name they could take.
I would look into chapter 7 bankruptcy for a fresh start.
Hi, so I actually found out that it’s discover bank trying to file a judgment against me. Court was December 28th and was dismissed because I wasn’t serviced or found. So is it possible they have court clerks still trying to personally serve me in order to continue trying to sue me? I live in PA. Should I avoid being served? Should I allow them to serve me? I am willing to try to settle for 30% what are your thoughts/advice for settling with discover for them to stop the judgement against me. It’s not in my credit report. I checked the court systems and that’s how I found it. Is the statue of limitations 4 years in pa? If so, 4 years from the date of account opening, closing or since last payment? Do you have experience with settlements with discover once with law firm? If wage garnishment is illegal in pa what should I do about my direct deposit if they can levy my bank accounts? Thanks so much.
The suit is stalled, but they can typically still try again.
The 4 year SOL to sue starts from when you stopped paying? How long ago did you pay on your Discover account?
I would be ready to pay more like 50 to 80 percent to settle on a Discover account with a law firm.
Is it Zwicker and Associates that filed the suit?
Hi
My last payment to discover was in 2019 and it was sent to Weltman, Weinberg & Reis. Looks like there was court in dec 28 2021 I had no idea as they tried serving me at old residence. I found out after looking up online which court reset has since passed. It was dismissed because I wasn’t served. Seems like servers are still trying to serve me I guess so they can go to court again? I want to settle and have a little more than half of the 5,977.00 balance. What do you suggest? Also what should I request in return or prior to settlement payment? Will they still try to place judgement if I settle? Also, I know you mentioned wage garnishment isn’t permitted in the state of PA but my current employer is in NJ. Could they legally wage garnish my checks if I work in Nj but live in PA? Should I stop direct deposit and request checks to be mailed to me? Thank you!
It sounds like there is no judgment in the court record, so I would not be making changes to my bank accounts just yet. Bank levies happen when there is a valid court judgment.
I would negotiate this Weltman Weinberg now if it were me. I would get the settlement agreement in writing before paying. That is standard, so they should not balk at getting that to you.
Let me know if you need help.
Ok if I needed help. How would that work for? What would I need to do for help? I was hoping to try settling at 30% if possible. I’d like to do it asap to avoid a judgement. Is this sir ring you can help with? Or should I consult with a consumer debt attorney? Do you have any good suggestions for a good one in PA? I mean unless you think it’s not challenging to get them to settle with me directly at 30%? Have you dealt with discover or that attorney? Thanks
You can schedule a call using the box above the comments. You pick the day and time you want me to call you.
I do indeed do a lot of this. I do not think you have a shot at a 30 percent settlement with Discover. Not even if they were not suing. You will want to be prepared for something larger than that. You can buy time to raise cash by participating in the lawsuit process. You may want an experienced PA consumer law attorney for that.
We can talk strategy on our call.
Sounds good. I do have enough available now to settle at 60 percent. Do you think that I’d have. A good chance at a settlement?
I can dig in to more details about how collectable they may see you on our call.
My apologies. I’m just seeing your message. Called discover yesterday and they’re willing to settle at 50% which I do have. I’m wondering if it’s best to settle and pay them the 50% or to agree to a payment plan for a period of time which will pay the balance off in fill in the long run. I’m tryna decide which option would be best for my credit report. If I settled I would want it completely removed from my credit report but I’m not sure if they’ll do that. Your thoughts? Thanks
Discover does not do pay for delete. They will update it to show it is resolved and zero balance though, and your credit can improve from there.
If an account gets to the point you are being sued there is really not much difference to your credit from paying in full or settling for less.
Thank you for your reply. Do you think I could get them to agree to and list in the agreement terms that they will
Update the status as paid or paid as agreed instead of settled or settled for less? Thanks
Discover will typically show it as settled for less but don’t get hung up on that. I have a video up about paid in full vs settle for less when settling. It really does not make much of a difference.
Thank you so much!!!! You’re amazing! I just want to make sure they can’t try to sue me again after agreeing to a settlement. What do I need to do to make sure they can’t come after me again via lawsuit. Make sure they put that in the settlement agreement? I want to get this done today thanks again
I would request the settlement in writing. It is normal for one to be sent to you.
You can compare the letter you get with what I suggest you look for in a settlement letter article I linked to earlier in this thread.
Do you know about Midland credit management? They appeared on my credit report a few days ago for 2,686.00. I want to get it off of my report.
1. I have enough money saved to settle account
2. So they offer settlements for lower amounts for delete of negative reporting on my credit report?
3. Should I settle and put for delete if they allow or try to get it removed by requesting proof of debt/original contract?
4. Trying to not be sued
5. Since they buy for Pennie’s on the dollar what’s the lowest I should try settling for?
Thank you for everything!
I have a post up about settling with Midland Credit Management. Check that out.
You can get the deletion if the account is more than 2 years old since you stopped paying the original creditor.
You may want to ask me for help settling with Midland.
You are often looking at settlements around half, but with time to pay, which can be helpful.
Yes I stopped paying original credit in 2019. Ok how much is it for a phone call with you?
No charge for a phone consult.
If you want help negotiating the settlement though, the fee is 15% of whatever you save in the deal. An example would be owing 3k, and settling for 1k, where 15% of the 2k savings would mean a 300 dollar fee.
Thanks Michael!
I was called by a US Marshall today so I guess they are trying to serve me. I did an income statement and my expenses are very close to my income and so I am thinking about pleading with the court to allow me to pay $5 a month and then maybe try to settle in 3 years after they are receiving very little money they may change their tack.
Should I call the lawyer mysef and try and settle , or ask a firm to represent me?
I would get help from an experienced debt collection consumer law attorney.
Thank you so much for writing this article. I have been reading so many different articles online on debt collection lawsuits and I will have to say this one has helped me the most. It is wrote for the average person like me who can understand. Thank you again.
Have not received a summons but got a advertisingletter in the mail from an attorney indicating that there records indicated I was being sued. Looked it up and sure enough it was there. My issue is I got into a bad gambling problem and ran up my debt big time on all my cards. Probably total 65K in debt over 6 cards. Have received some offers from some including Chase for 35% on the 10K which I may take up on that offer. Unfortunately the BOA is for $22K. Is my best options now to go and try to settle with them. My financial situation is in flux, yes I have no money but will be receiving some inheritance money shortly that may help my situation. I would be able to settle and maybe pay a lump sum to BOA but what am I realistically looking at…can I get them down to 30-40% which is still 6600-8800 or would they demand more at this point. With all the credit cards I owe its going to add up paying them all off even with some money coming in. Currently im heading back on unemployment as well for a few months. Is it best to call BOA or the lawyers? What shouldnt i tell them over the phone? Rather do this myself that get a laywer involved…thanks, love your videos
I tend to see Bank of America lawsuits settle around 65%.
Once banks send your accounts to collection law firms, and especially after a lawsuit has been filed, you have to make settlement and payment arrangements with the law firm.
You can do this yourself, but I generally suggest getting help from an experienced attorney when you are up against one collecting.
We have help available if you want to talk through strategy. You can schedule a call with me using the box above.
My wife has been served summons by Blitt & Gaines/LVNV as defendant in a small claims case in McHenry County, IL for purchased credit card debt in the amount of $1800. Trying to determine our best course of action:
1- IGNORE
(sounds like the worst option, default judgment would be a given)
2- SETTLE DIRECTLY WITH BLITT & GAINES PRIOR TO COURT DATE
(have heard horror stories of defendants settling and still getting a default judgment by LVNV unscrupulously proceeding regardless)
3- FILE APPEARANCE ON OUR OWN [PRO SE] AND SHOW UP FOR COURT DATE
(Need to understand what actually happens in court. Is LVNV likely to show up and follow through, or what are the odds of them dropping the case? If it proceeds, should we challenge the claim (make them “prove it”)? If we do that, what happens next? Cross examination of my wife under oath to try and trip her up? What are the chances of a positive outcome there?
4- ENGAGE AN ATTY TO FILE FOR US AND HANDLE PAPERWORK ETC
– For the amount of this claim, this sounds like it may not be worthwhile? My understanding is that the attorney cannot actually represent her in small claims court, correct?
How prepared are you to pay a settlement in a lump sum?
Can you pull together 50 to 80 percent of the balance?
I’m being sued by a law firm who bought it from a debt collector for $625.00 I got served papers but it doesn’t say by when to reply or how many days it just has a court date. It also says “order continuing “ but I never received notice of the first court date. I’m trying to settle with them but I have left numerous voicemails and they have not gotten back to me. I would like to resolve before going to court. Is there another way to handle this? Or I just need to wait?
Who is the named plaintiff on the suit?
Who is the collection law firm suing?
What state are you in?
It is common to be able to contact them and handle this out of, and before court, but you can also deal with it at your appearance if they are not communicating.
Are you calling the law firm directly?
Hi, Yes, the plaintiff is Midland and the lawyer is Law Offices of Marvin S. C. Dang, LLLC, in the state of HI. I am calling the law office directly through the number in my paper and also the number listed on the website but goes directly to voicemail. I also called the plaintiff but got told the law firm was handling the case.
If I go to court it says that they want the paid amount and any other fees accrued in the process. I’m really trying to avoid paying extra money..
It sounds like this is in small claims court.
I would continue to try to reach them, or even go to their offices.
I set up a payment plan with my debt collector for an old chase credit card. It’s been 2 weeks and I haven’t received anything written in the mail per our agreement. My 30 days is up in 9 days. What should I do?
Are you being sued and wondering whether you need to file an answer by the deadline?
Hello, I’ve been sued by Absolute Resolutions Investments for the amount of $3,813.94. The original credit card was with CitiBank. Is it recommended to settle before the court day, which is in 18 days? Should I contact the attorney of the Plaintiff or the Plaintiff (Absolute Resolutions Investments) directly? Where could I find the Plaintiff’s information if not available at the moment by court summons or any other documentation?
You typically have to deal with the collection law firm suing at this point, but if you were to contact Absolute Resolution you can do that here: https://absoluteresolutions.com/
If you can reach a settlement you can afford prior to filing, that is good, but if not, answering the complaint correctly buys you time to save up money and can sometimes lead to better outcomes.
Hi Michael, I am being sued by Portfolio Recovery Associates, LLC. The original balance was $1,178.08 with Victoria’s Secret, but now with their additional charges it is now $1552.80. I was in a bad car accident in 2016 causing me to have knee surgery 3/20/17 because my ACL had to be fully replaced. I became pregnant 4 months later which wasn’t planning. 6 months into my pregnancy I was almost killed by my ex. I was paying on this all the way up until I started having complications due to the physical abuse from my ex. I had to have an emergency c-section @ 7 months and my daughter and I almost died on the table. I tried to work and pay for it but I was having so many problems with my leg and found out that my ACL was already deteriorated, my PCL was torn, my LCL was severely damaged and my meniscus was also torn. I had to stop working completely because I had to have 7 additional surgeries and I now have severe permanent damage so I’m no longer able to work. I’m in the process of getting my disability started. But my big question is, since I haven’t been able to work since 2018 and have no income trying to raise a 2yr old and everything I’ve read says that they can take my car from me and sell it to get their money. My car is the only thing that I fully own. I’m scared to death and have no idea what to do now.
How much does your car Kelly Blue Book for?
What state are you in?
I typically do not see court judgments lead to attempts to take someones car that does not meet their state exemptions. That said, I have seen it a handful of times, and in the same states.
You can settle this when you are more prepared.
Are there any other debts out there besides this one?
I am being sued for a debt that I have paid off. I do have an email and the website saying it’s paid. Called company and they are sending me letter saying debt is paid. What do I do?
Who is it that you owed to begin with?
Who did you pay to take care of the debt, if different than above?
Who is the named plaintiff on your lawsuit, and who is the collection law firm suing?
I have some debt that I’m being sued for by portfolio recovery associates ($1800) I settled today and paid the agreed amount ($1200). My court date is in 7 days. Do I still need to go to court? I can’t find info anywhere. Thank you
Did you get the settlement agreement in writing?
I am a few months into monthly payments that I can now afford (Change of circumstance) on a charged off ~$18k + debt. I just got served a summons to district court on the account. I do get a letter monthly from the debt collector I am paying that states the monthly withdrawal amount and the outstanding debt. Do you have any advice on how I should answer the District Court summons?
Who is the creditor or named plaintiff on the lawsuit?
Who is the debt collector you were paying prior to being sued?
How much are they suing for?
I was left with all the debt when I was finally able to get out of an abusive relationship 2 yrs ago. I just got to a point about a month ago where I could start paying down old debt and Jefferson Capital decided to sue me. I am not contesting the debt because in the end it is mine, but is it worth trying to negotiate with them now for a payment arrangement or should I file my answer in court?
How much is Jefferson Capital suing you for?
If the balance of the lawsuit is on the low side, it can often make sense to settle prior to responding to the summons.
Mine is under 2500
Who is the named plaintiff suing you?