The simple answer to your question is yes, it may be possible to negotiate a repayment arrangement with this creditor out of court to prevent this lawsuit from proceeding any further.
First, you should carefully review your finances to determine what you can afford to pay each month to resolve this debt. Be honest with yourself about your financial situation and you ability to pay; if you overextend yourself, then you will likely end up defaulting on your new payment plan, which could make resolving the account even more difficult in the future. Once you have an idea of what you can afford, you need to contact the creditor’s attorney to try to negotiate a workable repayment plan. For example, the creditor may be willing to accept a percentage of the amount owed, say 80%, and allow you to repay that amount over the course of several years.
Some creditors are not willing to reduce the balance owed, but will still agree to a payment arrangement on the full balance to resolve the debt. It is relatively uncommon to find a creditor who simply refuses to negotiate with consumers, so I would be surprised if the creditor was not willing to offer you some type of repayment plan.
Generally speaking, once a lawsuit has been filed to collect on a delinquent account, the creditor will ask the consumer to sign a stipulated judgment, which states that the creditor will take a judgment against the consumer, but that it will not try to enforce the judgment as long as all agreed upon payments are made in a timely manner. The key to resolving this account in an affordable manner is to contact the creditor’s attorney as soon as possible before the creditor escalates its collection efforts any further.
Due to the fact that this creditor has filed a lawsuit against you, you may wish to consult with an attorney in your area to discuss your situation and how you should respond to the lawsuit. In addition, your attorney could likely assist you in negotiating an affordable repayment arrangement with the creditor, which may be easier if you feel uncomfortable contacting the creditor’s attorney yourself. Also, if for some reason this creditor is not willing to negotiate affordable repayment terms, an attorney should be able to discuss the alternatives available to you to help you resolve this lawsuit. Bills.com offers some tips for consumers who are trying to negotiate with their creditors, available online at the debt settlement section.
As I mentioned, the most important steps for you to take right now are to determine how much you can afford each month, and to then contact the creditor to try to work out a repayment plan to resolve this lawsuit. If you are able to reach an agreement with the creditor, I strongly encourage you to obtain a letter from the creditor or its attorney outlining the agreement upon terms before you make any payments to the creditor. Having a written agreement will provide you with evidence of the repayment plan if the creditor ever tries to renege on the settlement. If you would like to read more about the various options available to consumers struggling with their debts, I invite you to visit the Bills.com debt help page.
I hope this information helps you Find. Learn & Save.
Best,
Bill
Comments (119)
Goldthwaite, TX | May 03, 2012
May 07, 2012
2) Regarding the gas credit card, on what basis does the issuer claim you owe $100? Was this an annual fee of some kind? Was the $100 the total of a series of transactions? If someone you did not authorize used the account, then file a claim with the card issuer. If, on the other hand, the $100 is an annual fee for opening the account, then I do not see you have much to stand on.
March 16, 2012
March 16, 2012
February 22, 2012
February 22, 2012
You may want to speak with a lawyer, who can review all the facts and give you a professional opinion on whether the SOL will protect you. He or she can review the opposing side's paperwork, to weigh the validity of its claim that the proper date is 2008.
Laguna Woods, CA | September 23, 2011
September 23, 2011
Just because a judgment-creditor asks you to start payments on the judgment does not mean you need to do so, unless a court so orders it. Consult with your bankruptcy lawyer about this issue. He or she has details about your judgment that I do not.
September 15, 2011
September 16, 2011
Fresno, CA | September 11, 2011
September 12, 2011
San Diego, CA | September 07, 2011
September 08, 2011
Mountain Home, AR | September 04, 2011
September 06, 2011
Norwalk, CA | August 31, 2011
August 31, 2011
Canyon Lake, CA | June 22, 2011
June 22, 2011
Take the summons to a California lawyer who has experience in civil litigation. He or she will sniff out a fake summons in seconds.
Canyon Lake, CA | June 22, 2011
June 22, 2011
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Also, a gas credit card company that I never used and cancelled is trying to claim I owe them money but I never used the card, what should I do, the bill is only $100 so it's not worth attorney fees but I know I don't owe them.