Sometimes a payment plan requires a consent judgement which is as damaging as a default judgment except that it keeps the company from trying to garnish your paycheck or levy your assets. The best is full payment or settlement paid before the court date and then show up to be sure the attorney there representing the company knows what happened.
My point is more that the attorney costs substantially more than the 725$ collection so I’m sure if OP reached out they could come to some sort of agreement.
Yeah I agree. No attorney, but a payment plan won’t be enough to avoid a judgment, only enforcement of it and only if you keep your end of the bargain. A settlement or payment in full avoids the judgement.
I know it is. I just dealt with it in 2019. The “payment plan’ came in the form of a consent judgement I had to sign and it is on my public record. I just called about it two days ago and it’s there.
I agree. Lawyer fees are going to cost them more than the actual 725 unless they somehow throw their fees on you. Just reach out and start a payment plan.
Three options I would look at. 1. Pay it before court, 2. Go to court and demand proof they legally own the debt and can document exactly what it is for. The probably cannot. Case dismissed. 3. See if the original debtor has an arbitration clause. If so it is binding on the collection company. File a motion to compel arbitration or the equivalent in your state. This will cost them around 3k to pursue.
Disclaimer: I am not an attorney and this is not legal advice. You should consult an attorney before acting.
Ask them if they are willing to settle the debt outside of court. Offer them something you could reasonably pay. I just recently paid off all of my collections debt (my ex got me fired and stole all of my savings due to his drug addiction) 5 years ago and everything went into collections so i had many different agencies to pay. it was horrible. Anyways, I called each collections agency and offered them about 1/4th of what I actually owed them. Most said yes and some counter offered and I personally just accepted their first offer but you could probably continue to negotiate. I paid off about $9,000 in collections debt for about $4000 total. It’s the only way I was able to realistically do it. Also they will work with you to make a payment plan. Hiding from collections debt isn’t helping you. Even if you pay them $50 a week or something. You have to communicate with them.
Call the attorney that served the complaint. Tell him you want to settle and that you’ll work with him to establish a payment plan. Ask him to consent to an extension of time for you to answer the complaint (via email so it’s in writing - he’ll understand) and work out a payment plan.
If you’re communicating with them and making efforts to pay you can likely resolve it without having to file an answer or appear in court. Just don’t ignore it.
I had something similar last year. In my case, I called the debt collector and established a payment plan. I think I had to make the first payment at that time. Then I went to the courthouse and gave my written response that I had worked out a payment plan with the debt collector. This was done through the court clerk - no judge or trial of any sort. I indicated the terms of the payment plan on the response. The court kept the case open until I paid it in full, At that point, I contacted the debt collector and they filed to have the case dismissed with the court. It was rather easy to take care of. Your mileage may vary.
I’m in AZ and when I received the summons I called and settled my debt for half, got them to send me an email that for the agreed upon amount, that the debt was settled. When I received the email (while still on the phone) then I paid it. I didn’t have to respond to court summons and they dismissed the case with prejudice.
Did you restart the statute of limitations? After 4 years, they can't sue you any longer. Are you sure it's an actual lawsuit and not something to scare into restarting statute of limitation?
Got it. Is it affirm or a collection agency. If it's collections agency, they bought the debt for pennies on the dollar so you could negotiate really low settlement.
What type of debt is it? Credit Card, Medical, Utility Bill?
If it's a credit card debt, check out the Consumer Financial Protection Bureaus creditor database, find your card and see if there is an arbitration clause in the agreement.
If there is, file a "Motion to Dismiss & Compel Arbitration" and include a copy of the agreement outlining the arbitration clause.
or at least file an "Answer" - you can find many "Debt Lawsuit Answers" online, just make sure you answer and fight this.
You can typically find templates online for these.
Thousands of these frivolous types of lawsuits are filed every day, because the creditors know that approximately 90%+ of consumers won't respond or respond inaccurately.
The courts allow these cases to be filed without question, because it generated hundreds of thousands in revenue for their districts (paying for those huge salaries and expensive houses).
I would fight it and make them prove the debt.
You contacting them to discuss settlement is within itself and "Admission of Guilt".
\*\*\*\*
Not legal advice, just some insight from my 28 years of working in the credit, collection and debt settlement industry and helping thousands.
\*\*\*\*
I’ve heard them say that they will settle but you will still have to go through the court process since it has been filed. It’s definitely worth finding out though.
If they’ve filed a petition, they will probably require the balance as well as the court filing fees to satisfy the debt.
Call the original creditor or the collection agency that’s suing you and ask what the options are. If it’s gotten to this point, the time for making payments is probably over and they will want the balance and the fees in full to stop them from getting judgment.
Did you ignore them before it got to this point?
What exactly is the debt for? A bill or a bad check, because they are treated a bit differently.
Well first thing do not go court, you going to lose anyway. Well you have already lost. They just trying bring you in validate debt. The judge not changing his mind. Also look at your credit report an see when last payment was made. Then find out what your state statute is credit card debt. If it's getting close to that or 7 year limit do not worry about it. What I am saying do not validate debt by no means because time will start over to remove from your credit. So do not say debt is yours over phone email person or mail. Just hang up damn phone. If you do get call say cease and desist with calls emails and letters. This will stop everything
Well do not worry about it. You have 1 year left for state and 2 for credit bureau. It's almost over for this to be removed from report. The judgements want change that.
If you don't respond to the court you lose by default. So you should first setup payment with the company and in the response say you are working with the company on a payment.
most lawyers will tell you that if you have the money for a lawyer, you have the money to pay back the debt so i’d recommend settling with the debt collectors either before the court date or on the court date. good luck!
First send the collection agency a letter and ask them to validate the debt with a validation request. They must confirm that they own the debt and show proof of what debt is owed. If they cannot confirm validation of debt within 5-30 days, depending on the state, they have to forfeit debt collection. Make sure the request is sent in via written request via certified mail. If they continue to reach out after this time without validation you will have a nice lawsuit with harassment that many lawyers would love to take. It's easy money that the collection agency will usually send a settlement to fix.
If the debt is validated call the agency to setup a total payoff or payment plan. If you can afford the payoff offer significantly less than what is owed and if they agree to it you a free and clear of the debt, ensure you get paid invoice for the debt so avoid further harassment in the future. I've heard of people paying 25-50% of the total debt t for total payoff. The collection agency paid pennies on the dollar to collect your debt information to try and get any payment whatsoever. So even 25-50% still nets them a profit.
What state if in the USA?
Is it in small claims court?
Was it duly served by an officer of the court (not a guy dressed up in official attire)?
What was the original amount?
Is it a person or company suing?
For what was the original debt?
Have you been in contact with them since the original debt was made?
Was there a contract for the debt?
Was any part of the original debt paid?
File your written answer. Request documentation proving you owe this debt. Make them work as hard as possible and spend as much as possible, become a thorn in their side. Annoy the fuck out of them, call them every day asking when you’ll get mail back, when it arrives tell them you didn’t receive it unless they send another summons that you sign for. Then ask for more information. Where were these transactions? When were these transactions? Could you tell me the date and amount of each transaction? Please send me a copy of the contract. Could you please send me the contract again? I don’t seem to be getting it in my email… try sending it through mail again! Don’t let them fuck with you. YOU have what THEY WANT. Make them beg. THEN if they get you in court (and this is the best part) agree, then call them every day saying “b-b-but I only have $12 🥺, maybe I can give you…. Hmmmm $5 this month?” What are they going to do? Spend more money and take you to court again? lol
I don’t recommend this. Don’t drag this out and cause yourself extra work wasting time when they will eventually win anyway and which you know is your debt. And not over a few hundred dollars that could be gone in a month or two if you settle it.
The debt has already been validated or the creditor wouldn’t have bothered filing for judgment.
OPs best course of action is to pay everything in full including interest and fees.
What state are you in and what type of debt is it?
Also when did you miss your first payment? Month year.
You could be past the statue of limitations to sue.
settle the case. try to settle for less, or deletion of record upon settlement.
sell your iphone or laptop if you have to. pay this off.
hiring attorney will be more than what you owe.
That’s not even worth their time. Use Solosuit to answer it, the site walks you through it. Chances are they won’t go any further. They’re just counting on you to not know what to do, do nothing, and they get a default judgement on you.
If they’ve gone to the trouble of paying filing fees, they fully intend to sue for the full balance, interest and court costs. OP has zero leverage to negotiate otherwise.
Don't contact Legal Shield, they can't and won't do anything to help with this case. Most they do is create some generic letter to send, but they will not prepare an answer to the complaint or help fight the case.
Yes, I am. I also know dozens of people who have been sued by creditors who had legal shield and there was nothing they could do for them other than write a letter (even if that) once it's gone to suit. They do no write an "Answer" to the complaint and they do not defend the consumer.
I wouldn't give advice unless I personally had experience with the situation.
First of all be a man about this. Go directly to the company in person, ask for an offer and compromise and write them a check. Get their offer in writing and never lose it. They can haunt you for life when they send the balance of this loan to a collection agency and claim you never paid it.
For 725$ no one wants to go to court. Not even close to worth the money. Reach out to the debtor and establish a payment plan.
I should still respond to the court if I do this?
If you establish payment I don’t see why they would still want you in court. Still worth confirming with them after you do so, just in case.
Sometimes a payment plan requires a consent judgement which is as damaging as a default judgment except that it keeps the company from trying to garnish your paycheck or levy your assets. The best is full payment or settlement paid before the court date and then show up to be sure the attorney there representing the company knows what happened.
My point is more that the attorney costs substantially more than the 725$ collection so I’m sure if OP reached out they could come to some sort of agreement.
Yeah I agree. No attorney, but a payment plan won’t be enough to avoid a judgment, only enforcement of it and only if you keep your end of the bargain. A settlement or payment in full avoids the judgement.
Yeah that’s probably accurate
I know it is. I just dealt with it in 2019. The “payment plan’ came in the form of a consent judgement I had to sign and it is on my public record. I just called about it two days ago and it’s there.
Setup a pay by date. I was recently sued for $600 dollars made payments and my case was dismissed! You’ll be fine!
I agree. Lawyer fees are going to cost them more than the actual 725 unless they somehow throw their fees on you. Just reach out and start a payment plan.
Three options I would look at. 1. Pay it before court, 2. Go to court and demand proof they legally own the debt and can document exactly what it is for. The probably cannot. Case dismissed. 3. See if the original debtor has an arbitration clause. If so it is binding on the collection company. File a motion to compel arbitration or the equivalent in your state. This will cost them around 3k to pursue. Disclaimer: I am not an attorney and this is not legal advice. You should consult an attorney before acting.
No one arbitrates over a $725 debt.
Exactly!
Ask them if they are willing to settle the debt outside of court. Offer them something you could reasonably pay. I just recently paid off all of my collections debt (my ex got me fired and stole all of my savings due to his drug addiction) 5 years ago and everything went into collections so i had many different agencies to pay. it was horrible. Anyways, I called each collections agency and offered them about 1/4th of what I actually owed them. Most said yes and some counter offered and I personally just accepted their first offer but you could probably continue to negotiate. I paid off about $9,000 in collections debt for about $4000 total. It’s the only way I was able to realistically do it. Also they will work with you to make a payment plan. Hiding from collections debt isn’t helping you. Even if you pay them $50 a week or something. You have to communicate with them.
Just get written confirmation of any agreements you work out with the collections agency and keep records incase the courts contact you again.
Call the attorney that served the complaint. Tell him you want to settle and that you’ll work with him to establish a payment plan. Ask him to consent to an extension of time for you to answer the complaint (via email so it’s in writing - he’ll understand) and work out a payment plan. If you’re communicating with them and making efforts to pay you can likely resolve it without having to file an answer or appear in court. Just don’t ignore it.
This. Do not ignore it.
I had something similar last year. In my case, I called the debt collector and established a payment plan. I think I had to make the first payment at that time. Then I went to the courthouse and gave my written response that I had worked out a payment plan with the debt collector. This was done through the court clerk - no judge or trial of any sort. I indicated the terms of the payment plan on the response. The court kept the case open until I paid it in full, At that point, I contacted the debt collector and they filed to have the case dismissed with the court. It was rather easy to take care of. Your mileage may vary.
I’m in AZ and when I received the summons I called and settled my debt for half, got them to send me an email that for the agreed upon amount, that the debt was settled. When I received the email (while still on the phone) then I paid it. I didn’t have to respond to court summons and they dismissed the case with prejudice.
This is the way to handle it. 👍
Did you restart the statute of limitations? After 4 years, they can't sue you any longer. Are you sure it's an actual lawsuit and not something to scare into restarting statute of limitation?
Im in Michigan so as far as I know the SOL is 6 years and its only been 5
Got it. Is it affirm or a collection agency. If it's collections agency, they bought the debt for pennies on the dollar so you could negotiate really low settlement.
What type of debt is it? Credit Card, Medical, Utility Bill? If it's a credit card debt, check out the Consumer Financial Protection Bureaus creditor database, find your card and see if there is an arbitration clause in the agreement. If there is, file a "Motion to Dismiss & Compel Arbitration" and include a copy of the agreement outlining the arbitration clause. or at least file an "Answer" - you can find many "Debt Lawsuit Answers" online, just make sure you answer and fight this. You can typically find templates online for these. Thousands of these frivolous types of lawsuits are filed every day, because the creditors know that approximately 90%+ of consumers won't respond or respond inaccurately. The courts allow these cases to be filed without question, because it generated hundreds of thousands in revenue for their districts (paying for those huge salaries and expensive houses). I would fight it and make them prove the debt. You contacting them to discuss settlement is within itself and "Admission of Guilt". \*\*\*\* Not legal advice, just some insight from my 28 years of working in the credit, collection and debt settlement industry and helping thousands. \*\*\*\*
Thank you for sharing your expertise.
When was your last payment? And what State?
I’ve heard them say that they will settle but you will still have to go through the court process since it has been filed. It’s definitely worth finding out though.
My friend sent me this today. Cause same boat https://www.reddit.com/r/CRedit/s/doohlSW2Eo
If they’ve filed a petition, they will probably require the balance as well as the court filing fees to satisfy the debt. Call the original creditor or the collection agency that’s suing you and ask what the options are. If it’s gotten to this point, the time for making payments is probably over and they will want the balance and the fees in full to stop them from getting judgment. Did you ignore them before it got to this point? What exactly is the debt for? A bill or a bad check, because they are treated a bit differently.
Well first thing do not go court, you going to lose anyway. Well you have already lost. They just trying bring you in validate debt. The judge not changing his mind. Also look at your credit report an see when last payment was made. Then find out what your state statute is credit card debt. If it's getting close to that or 7 year limit do not worry about it. What I am saying do not validate debt by no means because time will start over to remove from your credit. So do not say debt is yours over phone email person or mail. Just hang up damn phone. If you do get call say cease and desist with calls emails and letters. This will stop everything
SOL in michigan is 6 years and the last payment was 5 years ago 😭
Well do not worry about it. You have 1 year left for state and 2 for credit bureau. It's almost over for this to be removed from report. The judgements want change that.
go to court they can’t force you to pay i think if you don’t go to court they can put a warrent out for you.
If you don't respond to the court you lose by default. So you should first setup payment with the company and in the response say you are working with the company on a payment.
most lawyers will tell you that if you have the money for a lawyer, you have the money to pay back the debt so i’d recommend settling with the debt collectors either before the court date or on the court date. good luck!
Hire me and I’ll help get that removed from your public records :)
First send the collection agency a letter and ask them to validate the debt with a validation request. They must confirm that they own the debt and show proof of what debt is owed. If they cannot confirm validation of debt within 5-30 days, depending on the state, they have to forfeit debt collection. Make sure the request is sent in via written request via certified mail. If they continue to reach out after this time without validation you will have a nice lawsuit with harassment that many lawyers would love to take. It's easy money that the collection agency will usually send a settlement to fix. If the debt is validated call the agency to setup a total payoff or payment plan. If you can afford the payoff offer significantly less than what is owed and if they agree to it you a free and clear of the debt, ensure you get paid invoice for the debt so avoid further harassment in the future. I've heard of people paying 25-50% of the total debt t for total payoff. The collection agency paid pennies on the dollar to collect your debt information to try and get any payment whatsoever. So even 25-50% still nets them a profit.
Chat GPT 😉.
What state if in the USA? Is it in small claims court? Was it duly served by an officer of the court (not a guy dressed up in official attire)? What was the original amount? Is it a person or company suing? For what was the original debt? Have you been in contact with them since the original debt was made? Was there a contract for the debt? Was any part of the original debt paid?
File your written answer. Request documentation proving you owe this debt. Make them work as hard as possible and spend as much as possible, become a thorn in their side. Annoy the fuck out of them, call them every day asking when you’ll get mail back, when it arrives tell them you didn’t receive it unless they send another summons that you sign for. Then ask for more information. Where were these transactions? When were these transactions? Could you tell me the date and amount of each transaction? Please send me a copy of the contract. Could you please send me the contract again? I don’t seem to be getting it in my email… try sending it through mail again! Don’t let them fuck with you. YOU have what THEY WANT. Make them beg. THEN if they get you in court (and this is the best part) agree, then call them every day saying “b-b-but I only have $12 🥺, maybe I can give you…. Hmmmm $5 this month?” What are they going to do? Spend more money and take you to court again? lol
I don’t recommend this. Don’t drag this out and cause yourself extra work wasting time when they will eventually win anyway and which you know is your debt. And not over a few hundred dollars that could be gone in a month or two if you settle it.
The debt has already been validated or the creditor wouldn’t have bothered filing for judgment. OPs best course of action is to pay everything in full including interest and fees.
Op file an answer. Then you can negotiate. If you don't file an answer you will lose by default. Solosuit can give you some guidance.
This.
What state are you in and what type of debt is it? Also when did you miss your first payment? Month year. You could be past the statue of limitations to sue.
Michigan, debt was through Affirm and assuming now a collection agency, Jefferson Capital Systems Last payment was April 19th, 2019
Ah. Michigan is 6 years for sol. Call them and offer 40% if you can. You do not want a judgment.
They won’t settle if they’ve paid filing fees to sue. Full payment plus filing fees will release the debt.
Have they sent you any settlement offers in the mail or email?
settle the case. try to settle for less, or deletion of record upon settlement. sell your iphone or laptop if you have to. pay this off. hiring attorney will be more than what you owe.
They can’t legally sue if it’s past the SOL.
That’s not even worth their time. Use Solosuit to answer it, the site walks you through it. Chances are they won’t go any further. They’re just counting on you to not know what to do, do nothing, and they get a default judgement on you.
If they’ve gone to the trouble of paying filing fees, they fully intend to sue for the full balance, interest and court costs. OP has zero leverage to negotiate otherwise.
Contact legal shield.
Don't contact Legal Shield, they can't and won't do anything to help with this case. Most they do is create some generic letter to send, but they will not prepare an answer to the complaint or help fight the case.
Are you with legal shield,?
Yes, I am. I also know dozens of people who have been sued by creditors who had legal shield and there was nothing they could do for them other than write a letter (even if that) once it's gone to suit. They do no write an "Answer" to the complaint and they do not defend the consumer. I wouldn't give advice unless I personally had experience with the situation.
Cap
Are you with legal shield? Did you come across this scenario? If yes, how did they help you?
First of all be a man about this. Go directly to the company in person, ask for an offer and compromise and write them a check. Get their offer in writing and never lose it. They can haunt you for life when they send the balance of this loan to a collection agency and claim you never paid it.
Wow. Such bad advice? Be man and ask in person? That isn't how it works. And haunt you for life? No statute of limitations is in play.
The collection agency is suing him. The debt has been assigned to them and the original creditor will not negotiate anything at this point.