Credit Card Debt Lawsuit (CM2025-02)

[C.M.]

Yeah, I can't do that; wish I could but I don't have the means to make such a lump sum immediately. I do get my bonus in about 3-4 months' time and would be able to pay it in full then, but I don't have any delusions that they might wait for that.

 

[zddoodah]

My only hesitation about a phone call is that I would not have anything to show the court about my efforts to resolve the matter. I feel like you are telling me that the court is less interested in my willingness to address the debt, than they may be to ordering a garnishment or something.

I'll say it once again: Although the court may require that the parties engage in alternative dispute resolution, the court does not care about any settlement discussions. You will never have need to present documentation to the court to prove that you tried to settle. Again: settlement communications are inadmissible for just about any purpose.

The court's job is to adjudicate a dispute. If you and the plaintiff don't settle, the court will do its job. Since it sounds like you don't dispute the debt, the court's job will be easy, and a judgment will be entered against you. If a judgment is entered, the plaintiff will be able to seek to enforce the judgment in whatever ways are permitted under Maine law. The primary means by which judgments are enforced against individuals are bank levies and wage garnishments. Based on a quick and cursory search, a judgment debtor's wages in Maine may be garnished for the lesser of 25% of the debtor's "disposable earnings" (basically take-home pay) or 40x the state minimum wage.

For my profession, that would be a disaster, and if I was forced to file for bankruptcy and my employer found out again, I could lose my career of some 25+yrs.

Found out again? It is illegal to take adverse employment action against an employee because of a wage garnishment or bankruptcy filing.

How often do they typically accept a settlement offer, like 99% of the time, 50% of the time, worse that that even; and what is the best way to strengthen my odds?

"They"? The willingness of Creditors A-X to accept settlement offers has zero relevance to Creditor Z. No one here knows anything about the propensities of your unknown creditor or its unknown attorney. The best way to strengthen your odds is to pay more money - either as part of a reduced lump-sum offer or a proposal to pay over time. If you owe $10,000, then a proposal to pay $10,000 over ten months has a better chance of being accepted than a proposal to pay a single payment of $1,000.

 

[zddoodah]

I do get my bonus in about 3-4 months' time and would be able to pay it in full then, but I don't have any delusions that they might wait for that.

An offer to pay 100% of the debt in 3-4 months is a MUCH better deal for the creditor than continuing with a lawsuit that may take a minimum of six months. If you're reasonably certain that it's coming your way, don't hesitate to make the offer.

 

[Redemptionman]

How often do they typically accept a settlement offer, like 99% of the time, 50% of the time, worse that that even; and what is the best way to strengthen my odds?

Is there any key words or phrases that demonstrates that I am serious and fully committed to repaying this, likewise on the flip side is there anything I should avoid saying.

You can ask them anything you want to, I am really concerned you are over thinking this. Ask to be put on a payment plan and work something out. If that doesn't work then ask for a negotiated settlement that you can pay them for a withdrawal of your claim. No one can tell you what they will take except for the person you are talking to. I would start out at 50-60 percent of the amount which is fair. They probably will want more like 70-80 percent but you will need to determine what they will do and will not do.

 

[welkin]

I have no assets other than 1 8yo car, I rent my home and have not significant savings.

This fact is one that is your bargaining chip because even if they win a lawsuit against you, it will just begin the process of collecting the judgement. You appear to be judgement proof although they could force the sale of your car. That would cost them more than the car is worth.

If you want to settle, that's between you and the plaintiff's attorney.

My first step would be to call and speak to plaintiff's attorney and find out if there is any room for a settlement.