I am trying to offer a reasonable amount to a lawyer in order to close a court case. I owe on this credit card, in which went to collections and now to a lawyer, $16??.00. I called the lawyer today and offered them $700.00 to close this debt. (Really the balance was $1391.00 but they tacked on other fees and interest.) I exsplained to them that I have not worked in over 6 months, and just started a part time job that does not pay much. And I am in need to have a surgery done within in 6 weeks that will put me out of work again. I am hoping they will accept my offer. Does anyone know if this will work? And if they don't accept this offer what next?
Please any suggestions?
P.s.
I am reading the Dave Ramsey book The total Money makeover. I've heard from Dave that this type of offer will more than likely work. But what if it does not, then what?
2007-07-25 09:40:01 · 6 answers · asked by nellytaco 1 in Business & Finance ➔ Personal Finance
Sure offers for less than the full amount are accepted. As long as the other side feels that that is as much as they are going to get out of you, and that it will cost them more to pursue the remainder then they will get paid by settling for less. As for if they don't accept the offer, then they'll either ask you to up it, or they'll seek the full amount from you.
2007-07-25 09:44:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's a pretty good offer. They may counter with 50% or 60% (that's why I was always told to start low, to leave negotiating room). But if you tell that that's what you have and you can pay it right away, odds are that'll be preferable to them than court. But be sure to get the agreement in writing. You can also ask (with a fair chance of success) that they remove the derogatory report from your credit report.
If they don't accept the offer, you go to court. Hopefully it'll be small claims, in which case you don't need a lawyer. All that happens is, they present evidence that you owe the money, and assuming the judge agrees, they get a judgement saying you owe the money. Then YOU have the right to ask for a payment plan, which can often be very low payments. (That's one reason they don;t like court-- they don't want to wait for their money.)
As long as you keep up that payment plan, they can't touch your money or harrass you. But if you stop paying, they can go back to court and begin the process of attaching your bank accounts etc.
2007-07-25 16:49:12 · answer #2 · answered by dj 3 · 1⤊ 0⤋
They changed the rules on credit card debt as far as filing bankruptcy. You have to pay student loans and credit card debt even though you file bankruptcy, so forget that. They may settle for less it's worth a try. but they will usually let you set up a payment plan so they get something back.
2007-07-25 16:58:20 · answer #3 · answered by redd headd 7 · 0⤊ 0⤋
It doesn't hurt to ask. They will settle for less, that's why this proceeding is called a settlement. Give it a shot. They will either accept or not.
2007-07-25 16:42:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you could also see if they would set up a interest free payment plan to pay off the debt.
2007-07-25 16:43:53 · answer #5 · answered by the_wayward1 4 · 0⤊ 0⤋
Tell him if they don't accept it, you'll have no choice but to file for bankruptcy-don't do it, but say it
2007-07-25 16:44:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋