Credit Card Debt Lawsuit (CM2025-02)

C.M.

New Member
Jurisdiction
Maine
This week I was served with a lawsuit for an unpaid credit card debt that is about $2,700 and I want to know how to best proceed.

I want to know if I were to make an offer to settle the debt for a reduced amount of around 50% to be paid on a monthly basis if I'm doing so I would lose any protections such as the right to seek bankruptcy protection should the attorney bringing the lawsuit against me reject my offer and insist on the full amount.

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

I do have a vacation coming up but that is not refundable or transferable. I know that does not look good but it was also a gift from our in-laws. The card debt is many years old and was the result of me becoming seriously ill from which to this day I have high monthly medical expenses for life saving medications.

I was out of work for almost 6mo without warning when I became sick and as a result fell behind on many responsibilities. Some worked with me and froze my repayments till I was able to resume payments but this creditor fell through the cracks, in part due to lack of sending me notices. They never sold the debt so I never got the typical sleazy debt collection phone calls and such. I heard nothing till this lawsuit.
 
I want to know if I were to make an offer to settle the debt for a reduced amount of around 50% to be paid on a monthly basis if I'm doing so I would lose any protections such as the right to seek bankruptcy protection should the attorney bringing the lawsuit against me reject my offer and insist on the full amount.

Making an offer to settle would not impact your ability to file BK.
 
and if you are facing multiple cards or defaults then a debt consolidation firm could be of help as well.

They will settle your debts for pennies on the dollar and represent you in any lawsuits filed regarding that debt.
 
Thank you both for taking the time to respond. I just have a couple of follow up questions...

1) Do I send my request for an out of court settlement to the plaintiff's attorney, or do I send it to the court that will be hearing my case if I went to challenge the debt, or do I need to send it to both?

2) Can I get some recommendations on such companies that might be able to help me with the settlement process. I just did a quick google and the couple that I just looked at talked about furnishing me with the forms I will need to send out, but their site said they cannot provide legal advice, and I would need to hire an attorney. This does not sound like the level of service mentioned above.
 
Thank you both for taking the time to respond. I just have a couple of follow up questions...

1) Do I send my request for an out of court settlement to the plaintiff's attorney, or do I send it to the court that will be hearing my case if I went to challenge the debt, or do I need to send it to both?

2) Can I get some recommendations on such companies that might be able to help me with the settlement process. I just did a quick google and the couple that I just looked at talked about furnishing me with the forms I will need to send out, but their site said they cannot provide legal advice, and I would need to hire an attorney. This does not sound like the level of service mentioned above.

1. If you are able to settle the debt with the collector without going to court then get a release before you pay them or send them the funds.

2. there are so many financial debt consolidation companies out there that a list would be huge. They are all not rated very highly because lets face it they are dealing with insolvent people who have bills they can not pay. You basically want to find the lesser evil ones out there. They will in most cases write the responses to court filings for you if they don't find one that will. You can see that from the reviews and ratings the company you are researching receives

GL with it
 
Do I send my request for an out of court settlement to the plaintiff's attorney, or do I send it to the court that will be hearing my case if I went to challenge the debt, or do I need to send it to both?

If you want to settle, that's between you and the plaintiff's attorney. If you want to file a responsive pleading, you do that with the court. If you make a settlement proposal, be mindful of your deadline to file a responsive pleading. The plaintiff's attorney may be willing to give you an extension to respond while you're discussing settlement.


Can I get some recommendations on such companies....

Nope (and I've never heard of a settlement company that will also provide an attorney to represent you in litigation).
 
Ok for my clarity, if I contact the Plaintiff's Attorney (PA) to request that we work out a settlement do I need to send anything to the courts also?

And can the PA run out the clock by slow walking any response to my efforts to discuss a settlement.

In my initial communication with PA do I need to outline my initial settlement offer, or do we first need to agree to have such talks, and can the PA choose to reject entertaining discussions of a settlement offer. I don't know why they would as I imagine it saves time in court and allows them to pursue other debtors etc. but this is also my first rodeo and maybe defendants offer/agree to settle and then fail to follow through.

As always, thank you for your continued help.
 
Ok for my clarity, if I contact the Plaintiff's Attorney (PA) to request that we work out a settlement do I need to send anything to the courts also?

And can the PA run out the clock by slow walking any response to my efforts to discuss a settlement.

In my initial communication with PA do I need to outline my initial settlement offer, or do we first need to agree to have such talks, and can the PA choose to reject entertaining discussions of a settlement offer. I don't know why they would as I imagine it saves time in court and allows them to pursue other debtors etc. but this is also my first rodeo and maybe defendants offer/agree to settle and then fail to follow through.

As always, thank you for your continued help.

You would be surprised, they expect and want litigation at times. If you are able to successful negotiate then get them to sign a release and withdraw their complaint. It is simple they submit to the court letting them know that you have reached a settlement and that they are withdrawing the complaint with prejudice. This makes sure they can not double dip and bring something in the future against you.
 
"You would be surprised, they expect and want litigation at times." well that does not sit with me well.
So sometimes they just want the chase more than the meat of the prey.

If I write the PA and they do not respond, can I take the evidence of my communications seeking to work on this out of court and request that the PA either be ordered to work on a settlement out of court or drop the claim to collect the debt. Or does the court truly not care, that is, am I in a meat grinder?

I don't imagine that latter scenario has a snowball's in a heatwave chance of ever happening...but I can dream, right?
 
"You would be surprised, they expect and want litigation at times." well that does not sit with me well.
So sometimes they just want the chase more than the meat of the prey.

If I write the PA and they do not respond, can I take the evidence of my communications seeking to work on this out of court and request that the PA either be ordered to work on a settlement out of court or drop the claim to collect the debt. Or does the court truly not care, that is, am I in a meat grinder?

I don't imagine that latter scenario has a snowball's in a heatwave chance of ever happening...but I can dream, right?

lol, wut? This is administrative in nature, it is a quick determination process. You know that you owed the money and so does the company that brought the case against you. If you all the law which represents the Plaintiff and successfully negotiate a settlement then make sure you get a release. if you face multiple of these then get a debt settlement company to do it.

I once offered to settlement a debt for my wife where the creditor sued her in court .The lawyer representative did not take my offer of settlement and it is more money than they got from the finance company which my wife used who submitted a response to their legal complaint. Sometimes it doesn't make sense, like a car maker I am fixing to file a small claim against because they will not warranty cover my brand new trucks cosmetic damage to a steering wheel. The paint is peeling off, they were like knock yourself out. I am really really tired of suing people and winning.

but that is all I do WIN WIN.......9 for 10 makes me an honorary lawyer of some sort.
 
if I contact the Plaintiff's Attorney (PA) to request that we work out a settlement do I need to send anything to the courts also?

And can the PA run out the clock by slow walking any response to my efforts to discuss a settlement.

The court does not care about any settlement discussions. The clock on your responsive pleading is always ticking. If you want an extension of your time to respond, it's up to you to ask for it and (if applicable under your state's court rules) to notify the court that you and the plaintiff's attorney agreed on an extension.


In my initial communication with PA do I need to outline my initial settlement offer, or do we first need to agree to have such talks

The former, and I'll note that, IMO, the best way to approach this is to make a phone call.


can the PA choose to reject entertaining discussions of a settlement offer.

Yes.


You would be surprised, they expect and want litigation at times.

While this may be true of some attorneys, it is, as a generalization, grossly inaccurate.


If I write the PA and they do not respond, can I take the evidence of my communications seeking to work on this out of court and request that the PA either be ordered to work on a settlement out of court or drop the claim to collect the debt.

Some courts will mandate that the parties engage in alternative dispute resolution (e.g., mediation or a settlement conference). However, settlement communications are inadmissible for just about any purpose, and a plaintiff has every right to seek every dime to which it is entitled.
 
If I write the PA and they do not respond, can I take the evidence of my communications seeking to work on this out of court and request that the PA either be ordered to work on a settlement out of court or drop the claim to collect the debt. Or does the court truly not care, that is, am I in a meat grinder?
You can't force the other side to come to a settlement, nor will the court attempt to interfere in that way.
 
I am really really tired of suing people and winning.

but that is all I do WIN WIN.......9 for 10 makes me an honorary lawyer of some sort.
Great, you're hired! ;)


The court does not care about any settlement discussions. The clock on your responsive pleading is always ticking. If you want an extension of your time to respond, it's up to you to ask for it and (if applicable under your state's court rules) to notify the court that you and the plaintiff's attorney agreed on an extension.




The former, and I'll note that, IMO, the best way to approach this is to make a phone call.




Yes.




While this may be true of some attorneys, it is, as a generalization, grossly inaccurate.




Some courts will mandate that the parties engage in alternative dispute resolution (e.g., mediation or a settlement conference). However, settlement communications are inadmissible for just about any purpose, and a plaintiff has every right to seek every dime to which it is entitled.

Thank you, more food for thought.
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.

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. I believe as an attorney, you must also remain solvent, and like I said this one bill fell through the cracks and was forgotten about over the years till the knock on my door, I checked my credit report, and it still does not appear which is good, I think!
 
You can't force the other side to come to a settlement, nor will the court attempt to interfere in that way.
Right, that is what I understood also. I was just wondering if I made a good faith effort to resolve it and they never responded, then would the court not look at them with a question in their eye of "Why would you not respond. That's not collecting on the debt in good faith!" I suspect it would carry no legal weight, but even as I lose if I can get the Judge to call them an 'A-hole', obviously not literally.

And I do understand that they are obligated to act in their client's best interest, and forgive me, but they also want to earn their share of income. Honestly, I don't know how it all works, I've never been here before, hence why I appreciate you all with your guidance.
 
Whoa, hang on. When did you last pay on or use the credit card in question?
 
3, maybe 4 years ago.
I because critically ill in 2020 and was in hospital for a month and then out of and unable to return to work under doctor's orders. A number of things fell behind, but I worked to resolve everything, or so I had though, but this one fell through the cracks.

Statute of limitations is 6yrs here, so they are not out of the legal window to bring a complaint to the courts, if that is what you might be thinking. And sorry for jumping ahead of you, if that is not the thought you were going with,
 
Ok, I just found it odd that the account is not on your credit report and assumed it might be older.

So, you're back to where you started. You can't force them to come to a settlement out of court.
 
Really, my pay is not "nothing" but given that I have a lot of medical expenses what I do earn is quickly knocked out. I want to pay it off, I am not looking to avoid paying it. I made the purchases, I enjoyed what I spent the money on; I don't want to deny paying them, like I was saying, this slapped me across the face the other day when I got served, the Sheriff even commented on my reaction, he could see that I genuinely had no idea this was out there. But that doesn't really matter not, does it.
 
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.
 
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?
Each case is different. My suggestion (and I've never been in your position) is to be realistic. For example, don't offer 10¢ on the dollar, or they won't take you seriously now or in the future. If you have a substantial portion of the amount available for immediate payment (I'm talking 75% probably), then contact them and offer them an immediate payment of 60% and negotiate up to your max. But, don't promise what you can't deliver.
 

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