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- Never ignore a summons, if you receive one.
- Consult with an attorney, to fully understand the extent of harm you can suffer.
- Try to negotiate a lump sum settlement.
- Start your FREE debt assessment
I received a court summons for approx. $1400. I am willing to work out a payment plan so I can avoid getting a judgment.
I received a court summons for approx. $1400. I am willing to work out a payment plan/settlement so I can avoid getting a judgment and not going to court. They will only settle for $1200. I was wondering, is that logical? I tried contacting the original creditor and they said that it isn't with them anymore it's with the law office that served me the summons. I once settled a $4000 credit card for $1100, so I don't understand how this particular agency won't (maybe can't?) go any lower.
First of all, I am not an attorney, so I cannot provide you with legal advice. You may want to consult with an attorney in your area regarding this legal matter. However, I will provide you with some general information that may help you in resolving this matter.
The civil suit papers or court summons you refer to in your question are frequently called a Summons and Complaint. The summons, which should be the first page of the documents you received from the court, should state the time period in which you have to file a response to the complaint with your local courts. If you decide that you would like to respond to the complaint, the court clerk should be able to provide you with the necessary forms.
I would recommend that you attempt to resolve this debt with the creditor or the creditor’s attorney before they take any further collection action. If you obtain a fairly sizeable portion of the balance, the creditor may be willing to settle the debt. For example, if you can offer 60% of the outstanding balance in a lump sum payment, the creditor may be willing to forgive the remaining balance and dismiss the court case. Contact the creditor’s attorney to discuss settlement of the debt and keep trying to negotiate. If you come to a dead-end there, you have the option to set up a payment plan.
If you cannot access a lump sum to settle the debt, the creditor may be willing to accept monthly payments to stop further collection activity, but will probably not dismiss the case against you. The creditor will want to obtain a judgment against you just in case you do not make your scheduled monthly payments. Again, contact the creditorÂ’s attorney to discuss possible repayment plans and ask them about a stipulated judgment payment plan.
If you do not resolve this matter, the creditor will likely obtain a judgment and proceed to attempt to collect on the judgment. Depending on the state you live in, judgment execution could include wage garnishment, bank levies, and property liens, and other actions. I encourage you to speak with an attorney licensed in your area to discuss the implications of a judgment against you, and what is the best course of action to resolve the account. You can review your own state's collection laws and statutes of limitations.
For more information about debt, and for debt help resources, I encourage you to visit the Bills.com Debt Help page.
I hope this information helps you Find. Learn. Save.
Best,
Bill
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Debt statistics
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Housing debt totaled $12.82 trillion and non-housing debt was $4.88 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
Collection and delinquency rates vary by state. For example, in Arizona, 15% have student loan debt. Of those holding student loan debt, 9% are in default. Auto/retail loan delinquency rate is 4%.
To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.
