A court settlement is when the plaintiff (the party suing) and the defendant (the party being sued) reach a voluntary resolution of the lawsuit without the court passing judgment on the merits. In debt collection cases, a settlement usually involves the defendant paying the plaintiff an agreed upon sum of money which is usually less than what was sued for. Debt collection settlements are either paid all at once (often referred to as a “lump sum”) or over time by monthly payments. It is usually the case that the longer the defendant has to pay off the settlement; the more he or she will ultimately pay.
Settlements are usually memorialized in a written settlement agreement or a “stipulation of settlement”. A settlement agreement is a new contract which supersedes all prior agreements and can include complex legal principles. The parties to settlement agreements are waiving rights, releasing claims and extinguishing liability. Settlement agreements also have the potential to impose severe penalties that might not have existed under prior agreements.
The Law Offices of Robert J. Nahoum, P.C. routinely represents consumers in negotiating settlements to debt collection lawsuit. When formalizing a written settlement agreement, we make sure that the terms of the agreement are as favorable as possible and that there no poison pills included that might put our clients in a precarious situation.
As with all of our consumer cases, we understand that our clients are under financial distress. Our job is to make things easier for our clients not harder. It is with this understanding that we have structured our fees. We charge our consumer clients based on a flat fees arrangement. Cases where we are hired to defend a debt collection lawsuit including the negotiation of a settlement generally range from between $750 and $1,500.
If you have questions, concerns, or legal needs regarding a debt collection settlement, we urge you to contact The Law Offices of Robert J. Nahoum, P.C. today by calling 845-232-0202.