What is the best way to settle with a creditor/collection attorney to avoid a judgment?
Question Details: We had pmt arrangements with a creditor for an unsecured loan for $8000 and they failed to process the payments. We called to ask why and were told they would check and get back with us. Then we got a call from an attorney's office. The creditor has offered a settlement (for slightly less than the balance) or has threatened court if we do not sign a consent judgement. They claim a court date is set, but it is not. We offered a lower settlement, with no response yet. Should we continue to send payments, call back and offer to settle again or wait to see if it goes to court?
Bankruptcy Law Answers
I am a lawyer in CT an practice in this area of the law. I suggest calling the lawyer back and trying to discuss reinstating a settlement. Until then, i would not send any further payments. You want to negotiate a deal. Even if a judgment enters the court is likely going to order weekly payments in an amount that you can afford. I suggest you also think about bankruptcy and let the lawyer know that this is an option you are debating as he will then want to settle with you- otherwise he will not get any money.
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