Any chance of negotiating with a lawsuit?

[Jammed]

My hubby is being sued not once, not twice but three times by Chase (Fredrick Weinburg). We don't have the money to pay these off (about $17,000) and are holding off on BK filing for now. Any chance that Chase would accept small monthly payments to drop the suits - or is it too late for that now?

[treehugger1]

Since they have already filed the complaint and I'm guessing you have been served, I would think it unlikely that they would drop the suits. The only way you will know is to contact the attorney and ask. I'm not sure the attorney will bother to speak with you. If there is little cost associated with filing answers to the suits, then file answers and see what transpires.

[daytona]

You can always settle, some people settle post judgement. Let them know what you can afford on settlement otherwise they need to let their client (Chase) know you will be filing CH7 and are a no asset case. If they do accept a "pmt plan" over 3-4yrs they are probably going to want like 300/mo which is probably higher than your min pmts were...stupid, I know. and the banks wonder why they had to get bailed out... The really low settlments at .15-.25c on the dollar are for lump sums..

Answer the suits, seek discovery, etc will buy you many, many, months of time (and settlement offers) if you are trying to hold off on BK.

[HHM]

Keep in mind, you are not negotiating with Chase, you are negotiating with the law firm.

If the law firm will accept payments, they will want you to sign a "stipulated judgment," Meaning, that in the event you default on the payment arrangement, they can go directly to court and file the judgment. So, you really need to make sure you can afford it until you file BK.

Most collection law firms, the ones that actually sue, do not settle for 15-25 cents on the dollar, they want much higher amounts (after all, they have much more leverage now, they sued you). Many will accept longer term payment plans, but generally those will pay off the debt nearly fully. If they are going to accept a lump sum, it is usually north of 50% (your mileage may vary).

[Freddy03]

In my lawsuit - they started to offer settlements after I filed my answers, defenses and request for documents. The settlements never went below 50% and they wanted the whole 50 in a lump sum.

Just respond to the summons and try to wait it out until you can file.

Good Luck!

[wnguyen]

HHM

Are you a lawyer? I'm asking because you sound pretty credible and you have vast knowledge on many issues in this forum that only those from law school know.

[GoingDown]

You can always settle, some people settle post judgement. Let them know what you can afford on settlement otherwise they need to let their client (Chase) know you will be filing CH7 and are a no asset case. If they do accept a "pmt plan" over 3-4yrs they are probably going to want like 300/mo which is probably higher than your min pmts were...stupid, I know. and the banks wonder why they had to get bailed out... The really low settlments at .15-.25c on the dollar are for lump sums..

Answer the suits, seek discovery, etc will buy you many, many, months of time (and settlement offers) if you are trying to hold off on BK.

Yes, they will settle post judgment.

Wait a few years after the judgment, and they will go way down to about a third of the judgment. That's what Crap1 offered me. I just ignored it, and still haven't paid them a penny of it. And as far as I know, it is now beyond the SOL for judgments in my state.

One thing you can try to make them sweeten the offer is to write to them saying, "If we cannot reach a mutually acceptable settlement agreement, I am considering filing bankruptcy very soon. Will you accept _____________________________ as a settlement? If not, you will be hearing from my bankruptcy attorney very soon. This is my final attempt to settle this matter outside of bankruptcy court."

That would only work in writing. Because it will get to a higher employee who might realize that their only chance to get anything would be to settle for about what you are offering them. They would know if you BK on the judgment, it will become worthless to them. But calling them on the phone won't go well, because you will end up talking to some flunky who doesn't know anything and doesn't care.