topic Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi in Rebuilding Your Credit

Getting sued by credit union, they/their attorney will not budge on settlement amount, need advice

creditdog2 — Sun, 03 Dec 2023 04:00:40 GMT

I defaulted on a credit card about a year ago, total amount owed is about $18,000. Found out through attorney advertising that a lawsuit was being filed against me. Long story short, I reached out to their attorney to see what we can settle for. The attorney is saying they will not settle for less than 80%, and that would have to be paid over 2 years. The credit union is a small local one, not known nationally.

We have not gone to court yet. Should I have my attorney file an answer to drag things out? Should we "file a motion to compel arbitration"? I've heard this can help. Part of me is also wondering if I show up to court with say $8,000 and say "I can settle this for this much right now" and see what they say.

Any thoughts?

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

pizzadude — Sun, 03 Dec 2023 04:11:40 GMT

@creditdog2 wrote:
I defaulted on a credit card about a year ago, total amount owed is about $18,000. Found out through attorney advertising that a lawsuit was being filed against me. Long story short, I reached out to their attorney to see what we can settle for. The attorney is saying they will not settle for less than 80%, and that would have to be paid over 2 years. The credit union is a small local one, not known nationally.

We have not gone to court yet. Should I have my attorney file an answer to drag things out? Should we "file a motion to compel arbitration"? I've heard this can help. Part of me is also wondering if I show up to court with say $8,000 and say "I can settle this for this much right now" and see what they say.

Any thoughts?

It seems to me that any leverage you have now will be lessened if you wait until the court date to try and work it out.

If you legitimately owe the debt, which it sounds like you do - then run the numbers and see what you can really afford and start making offers.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

creditdog2 — Sun, 03 Dec 2023 05:15:32 GMT

I tried settling it through emails and the attorney was firm on what the CU was willing to do. I didn't try any other payment plans, however. Maybe I'll try that next.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

7774x — Sun, 03 Dec 2023 15:20:02 GMT

@pizzadude wrote:
@creditdog2 wrote:
I defaulted on a credit card about a year ago, total amount owed is about $18,000. Found out through attorney advertising that a lawsuit was being filed against me. Long story short, I reached out to their attorney to see what we can settle for. The attorney is saying they will not settle for less than 80%alot especially from asmall CU, and that would have to be paid over 2 years. The credit union is a small local one, not known nationally.

We have not gone to court yet. Should I have my attorney file an answer to drag things out? Should we "file a motion to compel arbitration"? I've heard this can help. Part of me is also wondering if I show up to court with say $8,000 and say "I can settle this for this much right now" and see what they say.

Any thoughts?
It seems to me that any leverage you have now will be lessened if you wait until the court date to try and work it out.

If you legitimately owe the debt, which it sounds like you do - then run the numbers and see what you can really afford and start making offers.

My experience from being sued ..the time before Court starts is best time for a deal to be made with lawyer .. 2nd best time is a sympathetic judge directs lawyer to work out a deal immediately with you .. after case your is 1st heard..and then come back to judge to approve deal .. 80% max amount for a small CU C/O? has some wiggle room but not much..

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

creditdog2 — Sun, 03 Dec 2023 20:40:48 GMT

@7774x wrote:
@pizzadude wrote:
@creditdog2 wrote:
I defaulted on a credit card about a year ago, total amount owed is about $18,000. Found out through attorney advertising that a lawsuit was being filed against me. Long story short, I reached out to their attorney to see what we can settle for. The attorney is saying they will not settle for less than 80%alot especially from asmall CU, and that would have to be paid over 2 years. The credit union is a small local one, not known nationally.

We have not gone to court yet. Should I have my attorney file an answer to drag things out? Should we "file a motion to compel arbitration"? I've heard this can help. Part of me is also wondering if I show up to court with say $8,000 and say "I can settle this for this much right now" and see what they say.

Any thoughts?
It seems to me that any leverage you have now will be lessened if you wait until the court date to try and work it out.

If you legitimately owe the debt, which it sounds like you do - then run the numbers and see what you can really afford and start making offers.
My experience from being sued ..the time before Court starts is best time for a deal to be made with lawyer .. 2nd best time is a sympathetic judge directs lawyer to work out a deal immediately with you .. after case your is 1st heard..and then come back to judge to approve deal .. 80% max amount for a small CU C/O? has some wiggle room but not much..

When you say "time before court starts" do you mean literally on that day, right before you go up to the judge?

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

7774x — Sun, 03 Dec 2023 23:38:31 GMT

"When you say "time before court starts" do you mean literally on that day, right before you go up to the judge? "

Yes day of court hearing .. 15 mins -30 mins... before court starts .... the lawyer might/will be looking for you to make a deal .. so then, judge only needs to ok it. .....be there early.

Start to carefully put together coherent ideas , reasons why you have not paid ..,, why you can't financially accept lawyer offer of 80% settlement .. what dollar amount can be acceptable to work & fit your situation..

Don't try to B.s the judge.. be polite , respectful.. example.. say .. Good Morning to the Judge .. you will need him on your side .. be honest ..lawyer may want 80% ..to collect a fat bonus for himself

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

creditdog2 — Mon, 04 Dec 2023 05:11:15 GMT

@7774x wrote:
"When you say "time before court starts" do you mean literally on that day, right before you go up to the judge? "

Yes day of court hearing .. 15 mins -30 mins... before court starts .... the lawyer might/will be looking for you to make a deal .. so then, judge only needs to ok it. .....be there early.
Start to carefully put together coherent ideas , reasons why you have not paid ..,, why you can't financially accept lawyer offer of 80% settlement .. what dollar amount can be acceptable to work & fit your situation..
Don't try to B.s the judge.. be polite , respectful.. example.. say .. Good Morning to the Judge .. you will need him on your side .. be honest ..lawyer may want 80% ..to collect a fat bonus for himself

Thanks for clarifying.

My plan would be to tell them the truth: Got screwed by a manager for a business I tried to start, equipment stolen, had thousands of dollars in payments to make on loans, a family was sick and had to help out, my other business slowed down, but I have $X that I can settle with right now (or within 30 days if I don't bring the money with me).

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

KangiCosmos — Tue, 12 Dec 2023 16:15:28 GMT

@creditdog2 wrote:
@7774x wrote:
@pizzadude wrote:
@creditdog2 wrote:
I defaulted on a credit card about a year ago, total amount owed is about $18,000. Found out through attorney advertising that a lawsuit was being filed against me. Long story short, I reached out to their attorney to see what we can settle for. The attorney is saying they will not settle for less than 80%alot especially from asmall CU, and that would have to be paid over 2 years. The credit union is a small local one, not known nationally.

We have not gone to court yet. Should I have my attorney file an answer to drag things out? Should we "file a motion to compel arbitration"? I've heard this can help. Part of me is also wondering if I show up to court with say $8,000 and say "I can settle this for this much right now" and see what they say.

Any thoughts?
It seems to me that any leverage you have now will be lessened if you wait until the court date to try and work it out.

If you legitimately owe the debt, which it sounds like you do - then run the numbers and see what you can really afford and start making offers.
My experience from being sued ..the time before Court starts is best time for a deal to be made with lawyer .. 2nd best time is a sympathetic judge directs lawyer to work out a deal immediately with you .. after case your is 1st heard..and then come back to judge to approve deal .. 80% max amount for a small CU C/O? has some wiggle room but not much..

When you say "time before court starts" do you mean literally on that day, right before you go up to the judge?

@774x were you sued for credit collections.

@creditdog2 I would try to settle before even going to court. That way there is no judgement on your credit report. Settling with out a judge gives your standard drop of date with credit report 7 years. But depending on your state some judgements can last 20 years on your report.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

Slabenstein — Tue, 12 Dec 2023 16:29:20 GMT

@KangiCosmos - Judgements can't appear on your credit report (that's been the case for quite a while), so a judgement in and of itself won't affect your credit score. (What lead up to the judgement definitely can, though.)

@creditdog2 - I can't speak for how every small credit union does things, but if their lawyer isn't accepting less than 80%, then I doubt you have any real room to negotiate below that. If the credit union were willing to accept less, they would have sent your debt to a regular, pennies-on-the-dollar debt collector. If they've chosen to pay their lawyer to take you to court, then they're looking for maximum recovery. I expect your choices are to either a) pay 80% or b) be garnished.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

7774x — Wed, 13 Dec 2023 04:36:13 GMT

@774x were you sued for credit collections.

Yes ..there no record of being sued was on any CR ... Maybe you are thinking of default...I went to court .. the opposing lawyer called out my name before Court started.. they at 1st wanted full payment ,, settled for half .. The judge told the lawyer to schedule monthly payments that I could afford..lol The C/o/ settlement fell off at 7 years..

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

MichaelMyer — Mon, 18 Dec 2023 02:32:51 GMT

What does your attorney say? I've been sued (by a collection agency) and my attorney handled all communications and filings. He got the case dismissed. I personally wouldn't communicate back and forth with their attorney. He isn't on your side. Everything you say in those emails can be used against you in court. Hire a lawyer if you haven't already. 👍

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

Jeffster1 — Mon, 18 Dec 2023 02:45:01 GMT

If it's Patelco, good luck with that.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

vntrsc — Mon, 18 Dec 2023 12:54:48 GMT

@MichaelMyer wrote:
What does your attorney say? I've been sued (by a collection agency) and my attorney handled all communications and filings. He got the case dismissed. I personally wouldn't communicate back and forth with their attorney. He isn't on your side. Everything you say in those emails can be used against you in court. Hire a lawyer if you haven't already. 👍

Courts expect parties to communicate with each other. For those who cannot afford an attorney, a pro se defendant should communicate with the attorney for the other party. He should also read his rules of evidence. In most, if not all, states, negotiations and offers to settle are not admissible as evidence of liability.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

7774x — Mon, 18 Dec 2023 21:58:47 GMT

@MichaelMyer wrote:
What does your attorney say? I've been sued (by a collection agency) and my attorney handled all communications and filings. He got the case dismissed. I personally wouldn't communicate back and forth with their attorney. He isn't on your side. Everything you say in those emails can be used against you in court. Hire a lawyer if you haven't already. 👍

I saw many cases where an attorney was representing a person being sued .. the 1 person's case that was dismissed .. was the person being sued ..had terminal cancer, less than 6 months to live .. The CC lawyer , judge were tongue tied with their rush to quickly dismiss the law suit..

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

bass_playr — Wed, 20 Dec 2023 19:54:55 GMT

It's also important to note that if you're represented by an attorney, it can present an issue if the other side knows you have representation and still communicates with you directly.

Re: Getting sued by credit union, they/their attorney will not budge on settlement amount, need advi

settleddifferences — Wed, 27 Dec 2023 15:37:42 GMT

A motion to compel arbitration is only going to help you at all, if the agreement contains an arbitration agreement. If it does, and you don't want this to unfold to completion in court then read the agreement and see what it states about arbitration. If you are being sued in small claims court, then it is likely even filing a motion to compel arbitration may not work for you, if there is a small claims court exception in the agreement. If you already filed an answer and did not raise the issue of the arbitration then you may have already sent that ship to sail at even raising the issue. This would depend entirely upon the law in your state.

As for comments that things you say to their attorney can be used against you in court, this could be and could also not be true. Where I reside, in Texas, any discussions involving settlement of any issue cannot be used to present as admissible evidence of liability. If it was me and I was going to discuss any settlement at all, I would send the email with the subject line reading "Confidendtial Settlement Discussion Subject to Rule 408 of the Fed. R. Civ. P.". Usually though, settlement discussions are confidential, when it comes to someone alleging liability just based on the discussion itself.