How do you settle a old credit card debt you are being sued for?
First the debtor should determine if the debt is valid. All states have SOL concerning creditor debt where the time limit is set for a creditor to pursue litigation to recover monies owed If the SOL defense does not apply and the debt is valid the debtor can attempt to negotiate with the creditor for a less then the full amount owed and/or payment arrangements Please be advised that the SOL defense is not automatic, the defendant must be the one to file on it. If the debt is negotiated in lieu of a hearing (trial) the debtor must be certain to obtain a written contract stating all the details and signed by the person of authority before making any settlement/payment It is not advisable for the debtor to allow a creditor pursuing debt collection information to his or her personal finances such as a bank account.
I've seen as much as to 50% of the debt or more claimed to be owed by a collection agency consisting of interest and fees. Example: Recently, I talked to a guy who had his $5000 original debts balloon up to $11,000 in less than 3 years. This is illegal, every state has usury laws (which dictate the maximum interests allowed to be charged.) If you consider the junk debt buyer paid 7 cents on the dollar or less, there is no way there is this much interest.
Most companies would be thrilled to get you to pay the original debt even without the extra penalties they add on and will usually be more than agreeable in waiving these fees. Never look too eager to settle. Take plenty of time to reach an agreement.
Never let it slip that you need to settle the debt because you're buying a home, car or anything else. If, for example, you tell a creditor that you really need to get this debt settled to get into your dream home, you can forget any kind of settlement. The creditor will insist on the full balance.
Try not to accept the first, or even second, settlement offer (unless of course, it's really good). If the collection agency is the one calling YOU to push the deal forward, you have the upper hand. You cannot expect to reach an affordable settlement if the creditor thinks he is in the driver's seat.
Once you hand over the cash, all the wheeling and dealing is over. If you forgot to negotiate the way the listing appears on your credit report, guess what? You're out of luck.
Make sure you've gone over your agreement with a fine tooth comb. What If You're Contacted by More Than One Collection Agency for the Same Debt? If you're contacted by more than one collection agency for the same debt, it means that the original creditor has hired a secondary or even tertiary collection agency.
This indicates that the original creditor and even the first collection agency has given up on you. This means that the second collection agency has paid even less for the debt than the first one. If the agency hasn't been able to reach you by phone but knows that you are receiving its letters, it may be willing to take even less.
Should You Threaten Bankruptcy?
I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.
Related Questions
Would you use a debt settlement company? Have you ever used one in the past to settle your credit card debt?
If being sued by a credit card company for debt can they serve papers to you at your place of business?
After you pay the collection agency the negotiated credit card debt settlement amount can the creditor still chase you for the balance of the credit card debt later?
Can a judgment be placed on your home or wages garnished from a 15-16-year-old credit card debt and can they legally place this debt on your credit report after this period of time?
Do you think that the majority of credit card debt in this nation is the fault of the credit card companies for extending credit too easily?
What happens if you get sued by the credit card company but you can not pay the debt in Florida and lose the case by judgment?