By: Robert J. Nahoum
The notorious debt collection law firm Forster & Garbus, LLC has sued you for an old debt that they bought from an original creditor. You are considering whether to fight them or to reach a reasonable settlement and get on with your life. You now have to determine how much is a good settlement with Forster & Garbus?
Firstly, there are important practical considerations to make in determining whether and for how much to settle a debt collection lawsuit. Will you pay a lump-sum settlement or will you make monthly payments. Debt collectors will almost always agree to accept payments over time; however, if they do, they will almost always take less of a discount then if you paid in a lump-sum.
If you decide to make payments over time, you should never sign up for a settlement that you can’t keep to. It’s a favorite dirty little debt collection attorney secret to settle with a consumer for a reduced amount and agree to accept monthly payments with the hopes that you will default. If you default, the debt collector can then recover the full amount they sued you for without ever having to prove their case. This is a favorite tactic of debt buyers who know that when push comes to shove, they may not be able to prove that you owe them any money.
Next, you need to do a cost benefit analysis. While sometimes you have to draw a line in the sand and put up a fight, other times you have to be practical about the costs associated with defending a debt collection case. For example, if you’ve been sued for a $1,200.00 credit card debt and would need to take two or three days off from to go to court and fight, it might in the end cost you more to fight then to settle.
While there are no hard and fast rules on how much to settle a debt collection lawsuit, it is always important to consider the whole picture and make an informed decision. Remember, the debt collection attorney works for the debt collector, not for you. Take what he or she says with a grain of salt and consider what’s best for you. If you have an attorney, make sure you discuss with he or she all the considerations raised here.
If you need help settling or defending a debt collection lawsuit, stopping harassing debt collectors or suing a debt collector, contact us today to see what we can do for you.
The Law Offices of Robert J. Nahoum, P.C