Despite a majority of Americans reporting that they owe a debt, this is often seen as embarrassing. As such, if you have a debt that has moved to collections, you may be overwhelmed or feel guilty. However, when this collection turns into a lawsuit, you may panic. If you have been served with papers regarding a suit filed against you for an unpaid debt, you’ll want to explore all your options. One thing you may not have considered is trying to negotiate with a debt collector to settle the amount. If you’re interested in this option, you’ll want to keep reading to learn what you can do with the assistance of a California debt collection defense lawyer.
Can I Negotiate With a Debt Collector?
If you discover that a debt collector has sued you for an unpaid debt, you may not know you may be able to negotiate with them to work out a payment plan. However, you’ll need to complete two significant steps before starting negotiations.
The first thing you must do is validate the debt. This ensures that the debt in question belongs to you and that the amount listed is correct. Though not common, many debts can become mixed up due to data entry errors, identity theft, or something as simple as having a similar name.
Once you’ve validated the debt, you should work out, realistically, how much you can afford to pay each month to the collector. It’s important to note that if you try to negotiate without the assistance of an attorney, you’ll likely be asked to pay 80% of the owed funds at once as a settlement. However, working with an attorney can help you reach a monthly payment agreement you can afford.
What Are the Benefits of Reaching a Settlement?
One of the benefits of reaching a settlement is that you can avoid a lengthy and costly court battle. When you must appear in court, you need to take time off work, which can cause you to lose income. Additionally, you may be required to pay additional court costs and fees. By staying out of court, you can also prevent the anxiety and stress often induced as a result of going to court. Unfortunately, for the average consumer, this can be incredibly overwhelming.
It’s necessary to connect with an attorney if you wish to settle the debt you owe. Not only do they have a deep understanding of the law, meaning they can protect your rights, but they have the negotiation skills necessary to fight for the best possible outcome on your behalf.
At Loker Law, we understand how nerve-wracking it can be to discover you’re being sued for a debt. As such, our team will work tirelessly to fight for the best possible outcome for your circumstances. When you need assistance, don’t wait to contact us. Call today to learn how we can help you.