Can Collection Calls Continue When in Court

Can I Settle a Debt After Being Served?

George Simons | October 19, 2022

Summary: Yes, you can settle after service. The best way to settle a debt lawsuit is first to file a response, then contact the otherside and make an offer. You can use SoloSuit to respond in just 15 minutes. This gives you the leverage you need to settle.

Frequently, people get sued out of the blue by debt collectors. If you don't respond to the lawsuit, you'll automatically lose your case and the debt collectors can take back the debt directly from your bank account or your paycheck. For people who actually owe some portion of the debt, usually the best move is to respond to the lawsuit and then negotiate a settlement with the collector.

Why have I been served?

If you have been served a Summons for debt collection, it's probably because you have not paid a debt. However, according to research by the Consumer Financial Protection Bureau, there is actually a high chance you don't really owe the debt at all. If you do owe the debt, a lawsuit is usually the creditor's last resort and it means that you have avoided paying a bill for quite a while.

In most states, if you are being sued for debt, you will be served a Summons and Complaint. These are the legal documents that initiate a debt lawsuit case. The Summons notifies you that you are being sued, and the Complaint tells you why you are being sued.

You may be served these documents personally, meaning someone hands them to you. You can also be served these documents in the mail. You may also never be served at all, but through a process called "sewer service" the lawsuit is still filed against you.

We hear it all the time from our customers: "I didn't even receive a collections notice!" Collectors do this because they are banking on you not responding to the lawsuit. When you don't respond, collectors can file a default judgment against you. If granted by the court, the default judgment gives collectors the legal authority to garnish your wages, seize your property, etc.

You can avoid default judgment by filing an Answer with the court and reaching out to the collector to negotiate a settlement.

Can I settle my debt after being served?

Technically, you can reach out to the party suing you to discuss a payment plan at any time. However, there are certain tips and tricks that will help you reach the ideal settlement for you.

So, yes, you can settle a debt after being served, but make sure to file your Answer first. Here's why

What are my options after being served?

You have a few options when you are served:

• File an Answer — This is the best option in nearly all cases. Filing an Answer prevents the court from filing a default judgment against you. Filing an Answer protects you from default judgment, or losing automatically. It also puts you in a position of power, giving you leverage to settle your case. Even if you owe the debt, or if the statute of limitations has expired, you should still file an Answer.
• Do nothing — If you do nothing, you will automatically lose. The collector will file a Motion for Default Judgment against you. After that, the collector can take your money directly from your paycheck or bank account.
• Do something invalid — Doing something invalid is surprisingly common and has the same result as doing nothing. Invalid actions include: filing the Answer improperly, admitting everything in your Answer, calling the collector without filing an Answer, getting a settlement without filing an Answer, and responding to the collector with the wrong document, like a letter.

The first two options are shown below in this diagram of paths to win a debt collection lawsuit. As it shows, If you file an Answer, you can angle for settlement. If you don't, you'll lose by default. Paying the debt without filing an Answer isn't a good idea. If you pay the debt without filing an Answer, the collector can go behind your back and file for default judgment; then the collector can lie, saying they never received payment, and garnish your wages to collect the debt twice. Filing an Answer gives you basic protection. Filing for bankruptcy by itself also isn't a good option at this point. If you file for bankruptcy without responding to the lawsuit, then the collector can win and take the entire debt from your wages before you even start the bankruptcy filing.

So, to be clear, you should always file your Answer before settling.

Check out this video where SoloSuit's CEO explains how to settle a debt in 3 simple parts:

What should I do first after being served?

The moment you are served the clock starts ticking, meaning you have minimal time to respond before matters get worse. Despite this, after being served, the first thing you should do is stay calm. Next, you should go through the following steps to ensure that you settle your debt after being served.

Respond immediately

It is essential to respond to a summons immediately. This will ensure that you have a better chance to settle your debt after being served. The deadline to respond varies from state to state, but it ranges from 14 to 31 days. If you miss your opportunity to file an answer to being served, then the debt collector may file for a default judgment. This will prompt wage garnishment, and you will no longer be able to negotiate your debt.

SoloSuit makes it simple to respond the right way.

Check to see if you are legally liable

Look through all of the papers that you have been served with. Verify whether you do in fact owe money to the company that is attempting to collect a debt from you. Ask yourself a few questions:

• Did you borrow money from this company or do you owe them money on a loan?
• Is the amount that you are being sued for the same amount that matches with your own records?

This is not a question of if you can pay the debt, but simply a question of it you are legally liable to pay for it.

Examine your finances

Once you understand what amount you owe, it is important to understand what the creditors can legally take from you if they obtain a judgment.

If you own your home, then this is one item the creditors may be able to claim in a judgment. If you rent your domicile, then this is not something to worry about.

Creditors do have the option to freeze your bank accounts and garnish your wages. It is a good idea to calculate how much the creditors may be able to take in wage garnishment. This will not only allow you to prepare, but it may be able to ease your mind as well.

If the only income you receive is from Social Security, then in some states your accounts cannot be legally frozen, and there is nothing for them to come after for the moment.

Determine how much money you can afford to settle for. The most enticing settlement offers for collectors are lump sum payments. If you are able to pay a lump sum payment, you will pay less than you would with a monthly payment plan. Determine how much you can afford to pay as a lump sum payment and prepare to offer it for settlement.

Make an offer

After filing an Answer, you can settle with the collector by sending a Debt Lawsuit Settlement Letter.

If you are dealing with a debt buyer — someone who bought your debt from the original creditor — then they will probably accept a settlement between 1%–50% of the amount they're suing you for. On average, debt collectors buy debts for 8 percent of the face value of a debt. Meaning if they settle for 10 percent of the debt, they will earn 2 percent. If you are dealing with the original creditor, they will be less willing to settle for a low amount. You may be able to settle for 20%-70% of the debt.

Put together a realistic offer based on your finances and the debt itself. If you are struggling to come up with the money look at your valuable possessions. What can you sell that would not be detrimental to your life?

If you can't afford a lump sum payment, then monthly payments may be your best option.

You can draft a Debt Lawsuit Settlement Letter in minutes with SoloSuit.

Watch SoloSuit pay off one of our customer's debts by negotiating a settlement:

Continue to defend yourself

After you respond to the lawsuit and make a settlement offer, the collector may refuse to settle and, instead, continue to the next phase of the lawsuit. Usually, this phase is discovery. You know your lawsuit has progressed to discovery if you receive a Request for Response to Admissions or Interrogatories. To defend yourself in this stage, you need to file a response to these documents. A bare-minimum response will likely be sufficient to continue driving for a settlement. Each time you respond to new documents in the lawsuit, it increase the costs for the collector and increases the likelihood they will settle.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Settle with SoloSuit

Our Debt Lawsuit Settlement Letter is the best way to settle a debt collection lawsuit. Many people settle for 30% or less of the debt.

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

What If I Haven't Been Sued Yet?

If you've only received a collections notice, but not a lawsuit, the best way to respond is with a Debt Validation Letter. When a debt collector contacts you in any way, whether it's by phone or mail, you can respond with a Debt Validaiton Letter. This letter notifies the collector that you dispute the debt and requires they provide proof you owe the debt. They can't call you or continue collecting until they provide validation of the debt.

Learn more about the Debt Validation Letter here.

Get started with a Debt Validation Letter here.

How to Answer a Summons for Debt Collection in your State

Here's a list of guides for most of the 50 states.

All 50 states.

Guides on How to Beat Every Debt Collector

Being sued by a different debt collector? We're making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• RSIEH
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group

Win Against Credit Card Companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get Answers to These FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendant's Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouse's Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

You're Drowning in Debt — Here's How to Swim

Help! I'm Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Here's What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

vincenthationt.blogspot.com

Source: https://www.solosuit.com/posts/settle-debt-after-being-served

Share this post