Filing your response with the court in order to negotiate a lower payoff when sued.
I have an unsettled debt from May 2008 and I was served papers today. I'm unsure how to write a response to the served papers so I can negotiate a lower price. Do I even have to do a response in order to negotiate?
The amount I'm being sued for is 993 dollars. Any advice or help is much appreciated.
How do i write a response in order to negotiate the debt?
—lisa
It is not necessary to file an answer or response to a lawsuit you were recently served with in order to call and negotiate a payoff. It can prove to be a motivator for the plaintiff to settle for a more favorable amount, or at all. Filing the answer can also lead to more cost in a settlement if they never intend to settle, but instead have every intention of taking the case through to judgment (due to attorney fees etc). Many creditors and collection attorneys have softened from that practice shortly after the economy took a dive.
Filing your answer and response for a better settlement payoff or payment plan.
It is always best to work with your own experienced collection defense attorney when you are involved in a legal action. But I understand doing so can be cost prohibitive, and even make no sense at all if the balance you are being sued for is fairly small. Your balance being as low as it is, unless you can qualify for low income legal aid or some other form of pro bono legal support, it can make more sense to settle now, before letting this progress any further.
You can call the attorney suing you and open up a conversation about settling the case for less. Just be prepared for less flexibility on a debt this size.
What state do you live in?
Who is the attorney suing, and who do they work for (the name of the plaintiff)?
Who was the original creditor and was your last payment made in May 08?
Post answers to my questions using the comment box below. I will have some additional feedback to offer from there. It may indeed be a good strategy to file an answer to the complaint first, before making any call to negotiate the pay off amount.
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.
My last day to file a response to the court is April 7, 2020. But on March 30th I called Midland funding and I’m already on a payment plan to pay off my debt. Am I still required to file the response? Will I have a judgment against me if I don’t do it although I’m already paying it off?
This reply is not on time for Stephanie, but for other readers, if you are sued and settle with monthly payments, or go on a payment plan for the balance, you typically sign a stipulation or consent to judgment. When you do that, it typically would serve as your formal response. Talk to a local experienced debt collection consumer law attorney though, to make sure.
Today is the last day to file an answer. I have settled with the creditor. Can I still get a judgement against me? Should I answer to avoid judgement?
What were the terms of the settlement? Did you pay a lump sum? Is the agreement in writing?
Why wont Portfolio recovery allow me to talk to the attorney on my summons
Not sure. What is it you are trying to accomplish?
I have a lawsuit filled against me by portfolio recovery. We have worked out a payment plan, and they took $500.00 first payment out of my checking account, with four ore payments after that is the plan. I’ve asked for this in writing . I have not answered the summons to the court yet. The number for the lawyer on the summons is to portfolio recovery, when I call to talk to him regarding having this in writing they will not let me talk to him. They tell me the papers are going to be sent that day. But still no papers and my time to respond to the court is running out. So how should I respond to the summons with the court. Do i have to still respond to the court if i have a payment plan set up with portfolio recovey will they withdraw the lawsuit now. Or should i send my answer to the court with my bank statement showing the first payment they took out allready. PLEASE HELP
The paperwork is likely a consent or stipulation to judgment, not showing they are dropping anything. That is normal when you agree to a monthly payment plan once sued.
Dear Michael,
My last credit card payments before default were made October – December 2012… I hired a very dishonest attorney who filed a chapter 13 without my agreeing to it or seeing the petitions… I was in this phony Bankruptcy from May 2013-March of 2014. I took this attorney to court and had his fees disgorged. The judge dismissed the bankruptcy. No payments were ever made since I never saw any petitions. Now four years later Portfolio recovery has sent letters for collection. Since the bankruptcy was dishonest does it count toward tolling of the debt or will the late payments actually remain when last actual payments were made in Oct-December of 2012, which I hope is the case since the SOL is at 4 years soon. Also the Portfolio Recovery said they bought the debt in June of 2013, I was in Chapter 13 at that time so how could they have bought the debt? Even though I did not realize the dishonest attorney filed without my approval the documents were filed in court and the record states a Bankruptcy was filed May of 2013. The Bankruptcy was dismissed March of 2014.
Thank you for your help.
Accounts that are in chapter 13 bankruptcy are regularly sold by some creditors, or at least have been to date. And Portfolio Recover Associates is a regular buyer of chapter 13 accounts. This has been a normal occurrence, though it is changing as we speak. That will not help someone with 2012 accounts in a 13.
I do think the tolling is working against you, and regardless of the way your chapter 13 went down. You could talk to an experienced debt collection defense attorney in your state to be certain.
I know from several letters from attorneys that I have been sued by Portfolio Recovery Associates for the sum of $1,582.96 The original creditor was Synchrony Bank. I have not received any thing from the court, so I supposed that I have not being served yet. I want to settle out the court, should I call PRA’ attorneys or wait until I get notice from the court. I do not know what to do, please I need your advice,
If you want to negotiate a settlement I would start by calling the attorney that filed the lawsuit, Negotiate a lump sum pay off, and be sure the withdraw the case.
I am a partner in a business that has defaulted on a business loan from chase for$270,000. The business is closed after selling off assets we gave it all to chase we still owe$220,000
My partner is filing personal bankruptcy . We signed personal guarantees I offered 25% of the amount chase refused and is looking for a judgement I have another job but am paying off a heloc and other mortgage ? I cannot file bankruptcy but another loan will hurt me .will chase eventually settle with me on something that I can afford? I own the home with my wife will they go after it.
I responded to you on the other thread too, but here you reference a court action. Have you been sued as of right now, if so when? If you have not been sued yet, who gave you the impression that was going to happen?