I had a truck repossessed 5 to 6 years ago and now I'm being taken to small claims court by the credit union for $2600. I contacted the lawyer and offered $1300 a week ago to try and settle and she said she would get back to me but has not yet. In the mean time I filed an appearance and answer with the court otherwise they would of got an automatic judgment. My dad has offer to give me $300 to help so I can offer $1600. Should I retry and contact the lawyer and try to settle again? I wanted to call the credit union and try but I am thinking they would just say "contact our lawyer ". The credit union is another state and the lawyer they hired is in my state but a hour and a half away. I would think they would want to settle instead of paying a lawyer a hour and a half away to come to my town and goto court. Any advice would help. Thank you.
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Debt settlement help
- Thread starter Aceroc
- Start date
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quincy
Senior Member
What states are involved?
adjusterjack
Senior Member
Lots of people think that and they are wrong.
The reality is that you had 5-6 years to offer to settle the debt.
Now that they've gone through the trouble and expense of starting the lawsuit, they go "all in" because they know they will win a judgment that will follow you around for many years and allow wage garnishment and bank account levy.
Besides, a vehicle loan contract has an attorney fee provision so when you lose you pay their lawyer.
Sorry to paint such a bleak picture but the time to have offered the settlement was before you got sued.
Taxing Matters
Overtaxed Member
While some creditors refuse to settle after filing suit, not all do. If you make a worthwhile offer, a lot of creditors will accept. But what they will want to see before dismissing the lawsuit is the cash in hand. Promises to pay later aren’t going to do it. Installment agreements aren’t like to be accepted either unless you consent to judgment as part of the deal so they can attach assets and income to collect if you break the installment agreement.
In any event, you may always offer a settlement. Whether the creditor will accept only the creditor can tell you that.
quincy
Senior Member
Pre-trial settlement conferences are common. If you have cash-in-hand when you appear in court, the creditor might decide to settle for what you have available.
The creditor is more likely to settle pre-trial if a debtor either has a defense that might work in court to defeat the legal action filed against him (e.g., statute of limitations) or if a debtor might be hard to collect from even with a judgment (e.g., indigent, exempt funds).
It certainly doesn't hurt to try to settle with the creditor, at any rate, even at this late stage. The worse that can happen is the creditor refuses to settle, gets a judgment, and makes you pay (e.g., through wage garnishment if necessary).
The creditor is more likely to settle pre-trial if a debtor either has a defense that might work in court to defeat the legal action filed against him (e.g., statute of limitations) or if a debtor might be hard to collect from even with a judgment (e.g., indigent, exempt funds).
It certainly doesn't hurt to try to settle with the creditor, at any rate, even at this late stage. The worse that can happen is the creditor refuses to settle, gets a judgment, and makes you pay (e.g., through wage garnishment if necessary).
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It is what it is in the long run and I only blame myself. I'm just trying to settle it instead of going to court and putting it behind me. Never been to court so no idea what to expect. I do believe the court lady said there would be a mediation before trial. When I asked if it could be settled with a lump sum the lawyer did ask "How much you thinking?" so sounds like they are somewhat interested but not getting any communication back.
quincy
Senior Member
The creditor will wait until court to see before trial what you have to offer as a way to settle. If the amount or terms are unsatisfactory, the creditor will proceed to trial and get the judgment for the full amount owing plus court costs and fees.
The creditor is unlikely to settle for a payment plan at this point. They could consider a cash payment.
If settled prior to trial, make sure this cash settlement is in writing and dated and signed by the creditor and the settlement recorded with the court as the debt being settled in full and that no further action can be taken on this account (so the creditor cannot come back later to collect more).
Good luck.
That's true. I just wanted to settle so I didn't get a judgment against me and hurt my credit.
quincy
Senior Member
That's a good thing to want - but the collection action has already messed up your credit. The debt should have been handled long before it reached the point of court action. Most creditors prefer to work with debtors early on to avoid having to sue.
You think that you are in a strong position by offering that much cash in a lump payment? Wrong.
All that you've accomplished is to whet the lender's appetite. A lender that knows there are more lumps available and that you are not a likely candidate for a Chapter 7. Plus the longer you drag this out the greater the attorney's bill which will be tacked on to the judgment.
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