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

[creditdog2]

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? 

[pizzadude]

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@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? 

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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. 

[creditdog2]

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. 

[7774x]

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@pizzadude wrote:

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@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. 

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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..

[creditdog2]

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@7774x wrote:

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@pizzadude wrote:

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@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..

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

[7774x]

"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

[creditdog2]

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@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

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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). 

[KangiCosmos]

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@creditdog2 wrote:

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@7774x wrote:

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@pizzadude wrote:

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@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? 

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@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.

[Slabenstein]

@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.

[7774x]

@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

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..