What to do if I’m currently being threatened with a lawsuit from a collection agency who has hired a lawyer?

Is there anyway to convince them to settle my debt at a reasonable cash price? It is in the $6000 range. I’ve already offered them $1500 but it was refused. What are my options? If not ,what are my chances in court I simply can’t afford to be garnished?

Asked on January 22, 2013 under Bankruptcy Law, Oregon


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

One option that you may have is to advise the attorney who is demanding payment from you that you are a bankruptcy candidate and it might be a wise decision to accept the $1,500 now or receive nothing in the event of a Chapter 7 filing. From there you might be able to negotiate down the $6,000 demand.

If you owe the full amount demanded, your chances in court do not seem good.

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