what is the lowest settlement?

[Evelides]

What is the name of your state?What is the name of your state?What is the name of your state? Arizona

What is the lowest settlement a collections agency will take? I heard they will not settle for less than 50% of the debt. Is this true or do they ever settle for less? The balance is $14K, and bankrupcy is a serious consideration at this point. The collections agency is CollectCorp.

 

[Debt Guy]

The creditor will make the decision that they believe will result in the greatest value to them.

I've seen settlements as low as 10% -- and as high as 90%. Anywhere between 40% and 60% is fairly common.

If the collection agency is working for another creditor, then they have a set of guidelines from the creditor. Those guidelines tend to be pretty inflexible.

If the collection agency owns the debt themselves, they can do whatever they want -- settle for 1 cent on the dollar or hold out for 100% or anything in between.

This is a sizeable debt. If you are uncomfortable or uncertain, you might want to consider some professional assistance. Either a debtor/creditor attorney or a settlement company could help. Don't pay any money up front to the settlement company. A good one will know what makes sense and should be able to get you a better deal than you can get for yourself.

If you want to email me some particulars, perhaps I could focus the advice a little more.