Is it too late to settle with a creditor a day before a civil hearing for unsecured debt?

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Is it too late to settle with a creditor a day before a civil hearing for unsecured debt?

If I owe around $1,300. What would be the least amount a creditor/attorney would accept to settle for? I’ve never been in this situation but I am trying to figure out if I can settle since I don’t have an income and can’t afford the entire amount. What amount/percentage should I try settling for and do I call before or just talk at the trial?

Asked on June 19, 2012 under Bankruptcy Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It's never too late to try to settle--you can try to settle even during recesses or breaks in the trial, for example.

If the case against you is strong--you legitimately owe the money--then it is not likely that the creditor would accept less than half the amount, paid immediately as a lump sum, as settlement; however, since settlement is purely voluntary, it's up to each creditor, for each case, to decide what will satisfy it. You might also try to come up with a payment plan you can afford, to pay the amount off over time.


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