How do I negotiate a settlement with lawyer

[Sue852]

What is the name of your state? Wisconsin. How do I begin to negotiate a settlement of a credit card debt with a lawyer. I was just served with a summons and complaint and want to settle. However, I don't even know what the balance is on this account. It is not on my credit report, I checked all 3 and I don't know when the last payment was made, but I am guessing it was in 2/2000. How do I find out when the last payment was made. Could this be beyond SOL? How do I begin negotiations? Is there a percentage to begin with, i.e. owe $10,000, can I ask for a 50% settlement? Any help would be greatly appreciated.

[Ladynred]

You have a lot of questions. I suggest you go to [url]www.creditinfocenter.com[/url] and go to the Debt Settlement forum. Lots of your questions will be answered there.

THE most important thing - GET EVERYTHING IN WRITING !! NO phone negotiations, they are worthless.

Just an FYI , if this debt IS past the SOL, Wisconsin is one of the few states where it IS ILLEGAL to sue or even collect on an out-of-statute debt.

Further, if you are required to file a WRITTEN Answer to the Complaint, you MUST do it by the deadline, even if you do want to settle.

[Chien]

I watched your post, because debtcollector recently posted a simple, yet thorough and intelligent how-to list that I thought might pop-up again. since it hasn't yet, it's here:
[URL]http://forum.freeadvice.com/showthread.php?p=1221912#post1221912[/URL]

There are some points that you make that I don't quite understand. If you were served with a Summons and Complaint, I would expect that, somewhere in the Complaint, if not in an attached Exhibit, there would be a statement of the amount being sought and the date that it accrued (what they contend is the beginning of the SOL period). That's the date that they'll ask interest calculations to start. Are you sure there's nothing? A "since" date?

The fact that this is not on any credit report is not relevant at this point. Forget it.

After you look at DC's list (and I hope that you will), I'll tell you that there's nothing magical about this negotiation process. I don't do retail work; I work business to business and the CEO or CFO is no more or less agitated than you.

Start by explaining that you'd like to settle the obligation, not litigate it. Then you're basically friends working together for a viable solution to a problem, rather than starting as adversaries.

Don't fail to file a timely response, if it gets to that point, but the lawyer knows that it will cost you something to do that. Make it clear that, with only a finite amount of funds, you'd rather give it to the creditor than to the court.

Where do the negotiations start? Again, look at DC's list and DON'T promise something you know you can't do just because the lawyer demands it. Say you'll look into the possibility of loans from family or friends but you know it's beyond your present reach, you'll call back but end the call. Ensure that you keep communications open by agreeing to a time and date to talk again, but then get away and re-evaluate.

Remember that (1) everything they must do costs them money too and (2) there is very little information that they cannot compel from you one way or another, sooner or later. So, what you can agree to do cooperatively saves everyone money and, if you are asset-shy, offer to prove it. If they want to see a recent tax return, or balance sheet, or spousal support order give it to them. Same goes for a payroll stub. REDACT (black out) business name, bank name and account number etc. etc. but cooperate to the extent necessary. In other words, don't give information that you aid enforcement if you don't strike a deal, but give enough to support your claims and justify your offer. Don't "give away the store" and don't do anything unless requested, but let them know that you're sincere. They'll get it anyway.

When you talk again, let them know that you tried but you couldn't get the loan. You're offer is the best you can do but you will do it.

As everyone has told you, get it in writing. What I would add is to "trade" a written settlement agreement for an agreement that the litigation not go forward. This is done all the time. They get your written promise on such and such terms. If you default, they get to file that document in court and get a judgment but, in the meantime, everything is suspended and, if you fulfill your promise, they dismiss the litigation without it ever going to judgment. Make that a firm part of the deal.

[Sue852]

Thank you so much for your response.

In response to your first question:

There are some points that you make that I don't quite understand. If you were served with a Summons and Complaint, I would expect that, somewhere in the Complaint, if not in an attached Exhibit, there would be a statement of the amount being sought and the date that it accrued (what they contend is the beginning of the SOL period). That's the date that they'll ask interest calculations to start. Are you sure there's nothing? A "since" dateAs far as an amount being listed in the complaint

The complaint states that the prinicipal balance through 10/10/05 is $6710.04. Then it states that the accrued interest through 11/26/05 at 24% is $5,360.64. Then it states: Less payments received from 10/10/05 through 11/26/05 is $0.00. The total due as of 11/26/05 is listed as $12070.68.

I don't even know where to begin to find out when the last payment was made. Can you help? Thanks for all your advise.

[Ladynred]

I don't even know where to begin to find out when the last payment was made. Can you help?

The FIRST place to look is your credit reports. Look for the 'date of last activity',that is usually the last payment date.

[Chien]

(Ok - Unless some math whiz wants to help the lady, don't jump on me. I admit I'm doing a bit of rounding up and down and not working 4 places after the decimal point.)

OP - First, I'm not sure what difference it makes because the SOL in your state is 6 years and the filing still beat your recollection of the last payment, but it looks to me as if they're using a date sometime around August/September '02.

If the principal was $6,710 when you stopped payments and that was earning interest at 24% APR, you're paying $1,610.40 a year or $4.412 a day. If you hadn't paid since 2/2000, you'd owe about $9,170 in interest. Again, assuming that the balance was $6,710 when you stopped, it would have to be about 3.33 years to be at $5,360 in interest.

(The rest of you, if I'm wildly wrong, jump in, otherwise keep the calculators to yourself.)

I still say that, if you start by telling them that you'd like to work out a plan, if you can, but need to know how they got to the dates, they're likely to tell you, maybe even show you what they base it on.

[debtcollector`]

Why does everybody think their question is unique?

The blue bar right above the find a lawyer at the top of the screen has a series of links. The seventh is search. Use it

Sigh.....