- 1). Calculate the difference between the underlying debt and the penalties, fees and costs added to the overall tab. Typically, the difference between the debt you actually accrued and the total amount being sought by the collection agency represents the general parameters of any negotiation.
- 2). Contact the attorney representing the collection agency in your case. Endeavor to connect with the attorney as soon as possible. At the outset, a simple phone call suffices.
- 3). Relay to the attorney your position regarding settling the case. Understand that if the collection agency is willing to consider a resolution of the case short of trial--and the agency likely will be interested--there nevertheless will be some back and forth. Therefore, do not make your first offer of settlement your bottom-line position.
- 4). Follow up your conversation with the attorney with a letter (or an email if time is of the essence) that confirms what you are willing to do in the way of a settlement. The attorney needs to contact her own client to discuss your proposal.
- 5). Consider seriously any counter-offer that the attorney presents to you.
- 6). Avoid becoming too entrenched with a particular position in regard to settlement. You are best served by exhibiting some flexibility when attempting to settle a pending collection case.
- 7). It's possible to discuss a settlement at the proverbial eleventh hour. Indeed, many collection case settlements are reached in the hallway of the courthouse on the day of the trial.
- 8). The judge may require you and the collection agency to attempt a settlement of the case before she begins a trial.
- 9). Ensure that any settlement agreement that you reach is put into writing and filed with the court.
previous post
next post