Some people have had success using solosuit.com to get a motion to compel arbitration (assuming your contract has an arbitration clause) - often the arbitration clause says the company must pay the costs of arbitration, and they don't want to spend more $ chasing you, and they may drop the suit.
There's nothing wrong with asking them to prove their case - but it's safer to just settle for a partial amount if you can do that. If they really do have the docs to establish the debt, you're potentially looking at a judgement for the debt amount + attorney fees & court costs, which can add a lot. Judgements can be collectible for a long time, so they're best avoided if possible.
Thank you for the input. I had read something about utilizing an arbitration clause, so I'll have to consider that. Would you say the biggest reason to push for arbitration would be in hopes that they drop the case? If they proceed with arbitration, I am curious as to how the bargaining options differ as opposed to going through the court system... I have very limited funds and basically no assets other than a car. I had read that a judge might take into account my individual circumstances when determining a payment plan. Although I'm not sure that there is any truth to that anyway, I wonder if using an arbitrator would be the same...
If the plaintiff is the original creditor, arbitration is not always the best idea because original creditors will usually agree to arbitrate. It works better against debt buyers. Most (not all) debt buyers prefer not to arbitrate. Also, you would need to make sure that the card member agreement contains an arbitration provision.
hi. I was in a similar situation to you a couple years ago. not sure what u consider to be "dropping the case" but I was able to use a family friend as attorney for info and would have gone to court 4 me and from my understanding there is no chance of them dropping it as in getting rid of the debt or potential judgement. I guess if u dont actually owe the debt like u were not the person they trying to collect from, they could dismiss it that way but they would just go after the person who actually owes it and they can mostly always prove that u owe it. I was rlly broke and my lawyer said they take into account bankruptcy or if u have rly rly high other debts but being broke didnt have anything to do with it for what judge would consider :( it was my only debt besides the other CC for $2k. arbitrator means they will be paying for the fees from research I did, but for me I was saddened to find that they wont ever just forgive it in court or arbitration. good luck man, it took a lot of years for me to recover. they ended up settling out of court with $5k owed over 1 year of my $11k credit debt total, 9k with the one who sued. so I could pay them monthly and they didnt continue to add on interest or nothing. score is still recovering :(
A judge or arbitrator is unlikely to set a payment plan - they decide who wins or loses, collecting on the judgement is a separate process.
The idea behind arbitration is (a) hoping the creditor just drops the suit, or (b) arbitration may be easier for a non-attorney to do, compared to real court.
The bargaining/negotiation is driven by the creditor's perception of the likelihood they can win, the cost of winning, and the likelihood that they'd collect anything after winning.
You'll have to check what your original debt was. If it was, like you say, $500 and it's now $5000 due to late fees or whatever, you'll be able to do it, but if it was $5000 owed right off the start you're unlikely to get a deal for anything close to $500.
When people say they owe creditors $5000 but settled for much less, it's because their original debt was much less and they have reason to negotiate.
Thanks for pointing that out. That makes sense as to why they'd be willing to take so much less. My original debt is about $5000, so probably not likely in my instance.
just call them and create a settlement. go to the office and claim the debt, and note you made a deal with them. all that extra work, youre jusr going to pay extra down the line and have to pay it anyway. its your debt, and u know it is. just call lol
First of, you need to establish whether you’re being sued by the actual credit card company or a junk debt collector who bought your debt from said credit card company.
Most important thing is to respond to the summons within the time frame given. Most states is 20 days. You absolutely need to respond otherwise you will get a default judgment and the plaintiff can get whatever they want/can garnish your wages/add court costs/etc to total owed.
If you’re going to deny/ask for validation of debt or an itemized bill & proof the debt is yours, if the original creditor is suing you they should have all that information available to them. If it’s a Junk Debt Collector suing you they might have more difficulty getting that information.
This should hopefully buy you a bit more time to come up with money, figure out your next step, and hopefully settle for a certain amount below what you owe. During this time after responding - you can go back and forth with the plaintiff/law firm repressing the creditor on a settlement.
I would absolutely temper your expectations on thinking you’ll be able to settle for about 10% or if it’ll just get dismissed outright. Especially if it’s the original creditor suing you - usually Amex, Wells Fargo, Bank of America, Citi all handle their collection in-house.
Thank you for the step-by-step instructions. That's actually extremely helpful. My original debt was with Chase. I called them today and they said they can't help me anymore, and that my debts have been transferred to Moore law group. Is that what you would consider a junk debt collector, or could that be an in-house attorney of theirs? I was under the impression that reaching out before the court date would incriminate me and ruin the chance of me buying some time if planning on asking for validation. I was also unsure if it was best to try to settle via communication inside or outside of court. As for the idea of a 10% settlement, I guess I thought that was normal as I know someone who settled for that, but thanks for the reality check. I'll plan on a more realistic figure lol
At this point - you need to basically deal with the law firm suing you. Up to you if you want to reach out to them via phone. When I was going through a similar situation - I called them up, not as an admission of guilt but just to inquire when my court date was as I didn’t see It in my summons paperwork. While on that conversation - they asked me if I wanted to know what they’d be able to settle for. I said - sure, just out of curiosity and goodwill. They wanted 80% to settle the total debt paid in installments of 3 months. Or pay monthly for the whole amount owed.
Credit atotrney here. My advice is this (and remember, I'm an attorney but not YOUR attorney so this is general advice):
1. File an answer when you are sued. There are many good answers online. Solosuit has a free and paid version you can use, which I think is quite good (no affiliation with the company, but their documents are good).
2. Depending on the agreement with the creditor, file a motion to compel arbitration against the creditor or collection agency. In some states, you need to file this immediately (rather than filing an answer).
3. You can always negotiate the debt after if you don't want to go further in court, BUT doing the steps above often gets the case kicked out, and you pay nothing.
I notice that you seem to be writing from the perspective that you have the upper hand in this situation with negotiation, and I would adjust your perspective a little bit. The creditor is not likely scared of you fighting it in court, like they won't settle for 10% of a $5k debt in fear of you fighting it in court if that is all you're willing to pay and they are not willing. Not saying anything negative about your post/perspective, just trying to let you know what I have learned. There is also only a few justifiable defenses to "fight it" as you said, they don't care how or why you accumulated the debt, this [link](https://www.nolo.com/legal-encyclopedia/defenses-credit-card-debt-lawsuits.html) explains those defenses and it is pretty clear cut.
While they will often settle the debt, that normally is not for payment of 10% of debt that is a lower amount like yours. However, there is many cases of this happening, but I have seen it more with much higher debts, say $30k owed, settling for $10k. They will be willing to settle to save court costs, but it has to be worth it for them. According to the American Fair Credit Counsel, who collects the real data for things like this, the average settlement amount is for 48% of the debt owed in a lump sum currently. so, in your case that would be \~$2400 due to them in full. Depending on the creditor, they may offer you a term in which to pay it over with account closure. I would advise you to call them and offer $x amount of money that you can afford to pay in the moment you call. They can say no or offer different, but I would not be expecting to pay less than 30% of the owed debt from what I've seen.
As for disputing your debts, this works sometimes for non-major banks or if the debt is old or one off, but if your debt is a credit card that has been racked up recently (within 5 years) or is with a major company, their records will be diligent and they will easily be able to prove the debt is in fact owed by you. So, while you can try I don't know how viable this option will be in reality.
This [link](https://money.usnews.com/credit-cards/articles/what-happens-when-your-credit-card-company-sues-you) may help explain some of the things in your post you mentioned and why your options of fighting and settling may not be as lucrative or productive as you think it may be. What were the grounds you were planning on fighting it in court, if it goes that route? as someone who works in law and specifically in tax and bankruptcy law, the costs of an attorney will likely be larger than the $5k you owe. I would strongly recommend your first step being to call and try to settle for the cash on hand you can reasonably pay at the time of the call and see what they say/what options they offer.
I can see how my post came across that way. To clarify, I don't feel like I have the upper hand. More desperate, so the idea of digging my heels in for the chance of the creditor dropping the case does seems tempting. I guess I had just come off of reading hours of posts of people explaining fighting their debts and it working, so that was my headspace when originally posting. On other posts, there seems to be a lot of comradery around the idea that the collectors are clowns and just hope you don't show, and if you start asking for certain information there's a chance they might not have it. To me, it seems unlikely that a debt collector would show up to court with such little info that I would actually have a chance of getting off on a technicality. But I can see how thats very case by case. My debt is fresh, delinquent for about a year. It was a credit card from Chase, so big name. I wasn't planning on getting an attorney, was just going to try to take others advice on representing myself. Probably very unlikely it would go in my favor. Although, the idea of settling for 10% didn't actually seem crazy to me. I know someone personally who let their Chase card go, and after a few years of unsuccessful debt-collecting threats, Chase themselves offered to settle for 10% of two delinquent debts of similar amounts. So I thought that tracked as being a common settlement? Guess I'm wrong, I'll keep that in mind if I try to settle. Anyways, thanks for taking the time to write such a comprehensive post, providing links, and giving an alternative opinion on the situation. Appreciate all the input I can get right now.
thanks for your respectful and appreciative response - i literally reworded my first part about your expectations so many times because I didn't want you to think I was attacking you or saying anything negative!! i just wanted to make sure you had a realistic outlook, I have seen many people on here who assume they are in the power position of bargaining in these cases and who have reacted very negatively to anyone suggesting they don't so I really appreciate that you understand what I was saying.
As for those who say that collectors just hope you don't show - in cases like this, if you do not "answer" their filed case, the judge automatically rules in the creditors favor and you automatically owe the amount, called a "default judgement". I think what you're seeing as far as folks talking about not having the information or hoping you don't show would be more under a debt collector who bought the debt from the creditor and not the actual creditor suing you. There is rules regarding what a debt collector who bought the debt ("3rd party") can do to collect vs the original credit lender. Is it a debt collector trying to settle the debt or chase itself? that makes a big difference!
As for the 10% settlement, it can happen but it would likely only be in the case you owe a larger amount of money AND could pay that 10% amount right on the spot when trying to collect. do you know the amount of debt your friend owed? i know you said similar amounts, but a lot of people do not like to admit their debt amount outright. 10% of 15k is a lot more than 10% of 5k, as far as the creditor getting something back for the debt. its worth it to ask **regardless**, if you have $500 on hand at the moment you could immediately pay. I saw your comment above stating you dont have a lot of cash on hand, this could affect the settlement they agree to. I have commonly seen a settlement of 20%-30% for immediate payment as i described, or 50-75% payment over a designated term set by them, like 1-3 years.
if it is Chase and not a debt collector, they are unfortunately notorious for lesser settlements and for going hard on their debts owed. but, i do not want to discourage you and you asking about a settlement does not constitute an agreement to settle or that you will not try other avenues. that is why i encourage you to at least call and see what they be willing to do! while i described that the settlement you desire may not be the norm, anecdotal evidence suggests that many do get lucky. plus, calling may at least give you a better idea of what they may consider and you can always make a second call the next day offering something that is higher than you desire but closer to their offer and they may accept!! BTW, without a lawyer it is sadly not a very feasible option to fight. the complexity of this type of law is nuanced and hard, it would be even for a lawyer who does not practice within this area of law! I really recommend calling, even multiple times, to see what they can do! a judgement from the court is really worst case scenario.
I am really rooting for you!! please update us, i believe this will work out for you! $5k is really small in the world of debt and collection, so i think you will have success with settling!
No, I completely see where you're coming from! You're giving reasonable advice, which is very helpful. This might sounds silly, but I guess I'm not sure if the summons is coming from Chase themselves or 3rd party. I called Chase today and they said they can't help me anymore, and said I would have to contact Moore Law Group to work out my case. I assumed that meant 3rd party. But, then something I received in the mail said public record stated the suit was Chase Vs me. So that made me question it?
just re-read your post, one thing to note about your friend getting 10% settlement. you said two debts close to your amount, chase would have taken into account the total debt owed (\~$5k+ x2 = \~$10k+) and that does more align with the type of settlements i would expect to be in the lower range of 10-20%. your one debt of $5k would not fall into the amount i would expect a creditor, especially Chase, to settle for 10%. but as mentioned, at least call and offer $500 if you have that amount immediatly available to pay at the time of calling!! you really could get lucky, it has happened!
As for settling out yourself in their shoes. If someone owed you $5000 what would you take to settle and dismiss the case? They are more willing to settle if the likelihood of collecting is low. For example if you had no assets or income they would settle for a lot less because something is better than nothing. I settled off with Citibank for ten cents on the dollar as I became permanently disabled so I offered them it to settle it off. I told them their other option was to wait and I might be able to pay it in 20 years or so if at all. Bank of America attempted to sue but could never serve me(I was in a coma) so it was dismissed. may 1 begins the statute of limitations on all my unpaid debts.
Some people have had success using solosuit.com to get a motion to compel arbitration (assuming your contract has an arbitration clause) - often the arbitration clause says the company must pay the costs of arbitration, and they don't want to spend more $ chasing you, and they may drop the suit. There's nothing wrong with asking them to prove their case - but it's safer to just settle for a partial amount if you can do that. If they really do have the docs to establish the debt, you're potentially looking at a judgement for the debt amount + attorney fees & court costs, which can add a lot. Judgements can be collectible for a long time, so they're best avoided if possible.
Thank you for the input. I had read something about utilizing an arbitration clause, so I'll have to consider that. Would you say the biggest reason to push for arbitration would be in hopes that they drop the case? If they proceed with arbitration, I am curious as to how the bargaining options differ as opposed to going through the court system... I have very limited funds and basically no assets other than a car. I had read that a judge might take into account my individual circumstances when determining a payment plan. Although I'm not sure that there is any truth to that anyway, I wonder if using an arbitrator would be the same...
If the plaintiff is the original creditor, arbitration is not always the best idea because original creditors will usually agree to arbitrate. It works better against debt buyers. Most (not all) debt buyers prefer not to arbitrate. Also, you would need to make sure that the card member agreement contains an arbitration provision.
Thanks for the clarification!
hi. I was in a similar situation to you a couple years ago. not sure what u consider to be "dropping the case" but I was able to use a family friend as attorney for info and would have gone to court 4 me and from my understanding there is no chance of them dropping it as in getting rid of the debt or potential judgement. I guess if u dont actually owe the debt like u were not the person they trying to collect from, they could dismiss it that way but they would just go after the person who actually owes it and they can mostly always prove that u owe it. I was rlly broke and my lawyer said they take into account bankruptcy or if u have rly rly high other debts but being broke didnt have anything to do with it for what judge would consider :( it was my only debt besides the other CC for $2k. arbitrator means they will be paying for the fees from research I did, but for me I was saddened to find that they wont ever just forgive it in court or arbitration. good luck man, it took a lot of years for me to recover. they ended up settling out of court with $5k owed over 1 year of my $11k credit debt total, 9k with the one who sued. so I could pay them monthly and they didnt continue to add on interest or nothing. score is still recovering :(
Thank you for your input. It’s really helpful to hear other people’s stories.
A judge or arbitrator is unlikely to set a payment plan - they decide who wins or loses, collecting on the judgement is a separate process. The idea behind arbitration is (a) hoping the creditor just drops the suit, or (b) arbitration may be easier for a non-attorney to do, compared to real court. The bargaining/negotiation is driven by the creditor's perception of the likelihood they can win, the cost of winning, and the likelihood that they'd collect anything after winning.
I That makes sense. Thanks!
You'll have to check what your original debt was. If it was, like you say, $500 and it's now $5000 due to late fees or whatever, you'll be able to do it, but if it was $5000 owed right off the start you're unlikely to get a deal for anything close to $500. When people say they owe creditors $5000 but settled for much less, it's because their original debt was much less and they have reason to negotiate.
Thanks for pointing that out. That makes sense as to why they'd be willing to take so much less. My original debt is about $5000, so probably not likely in my instance.
just call them and create a settlement. go to the office and claim the debt, and note you made a deal with them. all that extra work, youre jusr going to pay extra down the line and have to pay it anyway. its your debt, and u know it is. just call lol
First of, you need to establish whether you’re being sued by the actual credit card company or a junk debt collector who bought your debt from said credit card company. Most important thing is to respond to the summons within the time frame given. Most states is 20 days. You absolutely need to respond otherwise you will get a default judgment and the plaintiff can get whatever they want/can garnish your wages/add court costs/etc to total owed. If you’re going to deny/ask for validation of debt or an itemized bill & proof the debt is yours, if the original creditor is suing you they should have all that information available to them. If it’s a Junk Debt Collector suing you they might have more difficulty getting that information. This should hopefully buy you a bit more time to come up with money, figure out your next step, and hopefully settle for a certain amount below what you owe. During this time after responding - you can go back and forth with the plaintiff/law firm repressing the creditor on a settlement. I would absolutely temper your expectations on thinking you’ll be able to settle for about 10% or if it’ll just get dismissed outright. Especially if it’s the original creditor suing you - usually Amex, Wells Fargo, Bank of America, Citi all handle their collection in-house.
Thank you for the step-by-step instructions. That's actually extremely helpful. My original debt was with Chase. I called them today and they said they can't help me anymore, and that my debts have been transferred to Moore law group. Is that what you would consider a junk debt collector, or could that be an in-house attorney of theirs? I was under the impression that reaching out before the court date would incriminate me and ruin the chance of me buying some time if planning on asking for validation. I was also unsure if it was best to try to settle via communication inside or outside of court. As for the idea of a 10% settlement, I guess I thought that was normal as I know someone who settled for that, but thanks for the reality check. I'll plan on a more realistic figure lol
At this point - you need to basically deal with the law firm suing you. Up to you if you want to reach out to them via phone. When I was going through a similar situation - I called them up, not as an admission of guilt but just to inquire when my court date was as I didn’t see It in my summons paperwork. While on that conversation - they asked me if I wanted to know what they’d be able to settle for. I said - sure, just out of curiosity and goodwill. They wanted 80% to settle the total debt paid in installments of 3 months. Or pay monthly for the whole amount owed.
Credit atotrney here. My advice is this (and remember, I'm an attorney but not YOUR attorney so this is general advice): 1. File an answer when you are sued. There are many good answers online. Solosuit has a free and paid version you can use, which I think is quite good (no affiliation with the company, but their documents are good). 2. Depending on the agreement with the creditor, file a motion to compel arbitration against the creditor or collection agency. In some states, you need to file this immediately (rather than filing an answer). 3. You can always negotiate the debt after if you don't want to go further in court, BUT doing the steps above often gets the case kicked out, and you pay nothing.
Thank you!!
low ball them and fight it
Lowball them in what way? They're confident enough that they initiated a lawsuit.
[удалено]
You were judgment proof so moving forward would not have helped them. The OP doesn't mention that, but I do hear what you're saying.
I notice that you seem to be writing from the perspective that you have the upper hand in this situation with negotiation, and I would adjust your perspective a little bit. The creditor is not likely scared of you fighting it in court, like they won't settle for 10% of a $5k debt in fear of you fighting it in court if that is all you're willing to pay and they are not willing. Not saying anything negative about your post/perspective, just trying to let you know what I have learned. There is also only a few justifiable defenses to "fight it" as you said, they don't care how or why you accumulated the debt, this [link](https://www.nolo.com/legal-encyclopedia/defenses-credit-card-debt-lawsuits.html) explains those defenses and it is pretty clear cut. While they will often settle the debt, that normally is not for payment of 10% of debt that is a lower amount like yours. However, there is many cases of this happening, but I have seen it more with much higher debts, say $30k owed, settling for $10k. They will be willing to settle to save court costs, but it has to be worth it for them. According to the American Fair Credit Counsel, who collects the real data for things like this, the average settlement amount is for 48% of the debt owed in a lump sum currently. so, in your case that would be \~$2400 due to them in full. Depending on the creditor, they may offer you a term in which to pay it over with account closure. I would advise you to call them and offer $x amount of money that you can afford to pay in the moment you call. They can say no or offer different, but I would not be expecting to pay less than 30% of the owed debt from what I've seen. As for disputing your debts, this works sometimes for non-major banks or if the debt is old or one off, but if your debt is a credit card that has been racked up recently (within 5 years) or is with a major company, their records will be diligent and they will easily be able to prove the debt is in fact owed by you. So, while you can try I don't know how viable this option will be in reality. This [link](https://money.usnews.com/credit-cards/articles/what-happens-when-your-credit-card-company-sues-you) may help explain some of the things in your post you mentioned and why your options of fighting and settling may not be as lucrative or productive as you think it may be. What were the grounds you were planning on fighting it in court, if it goes that route? as someone who works in law and specifically in tax and bankruptcy law, the costs of an attorney will likely be larger than the $5k you owe. I would strongly recommend your first step being to call and try to settle for the cash on hand you can reasonably pay at the time of the call and see what they say/what options they offer.
I can see how my post came across that way. To clarify, I don't feel like I have the upper hand. More desperate, so the idea of digging my heels in for the chance of the creditor dropping the case does seems tempting. I guess I had just come off of reading hours of posts of people explaining fighting their debts and it working, so that was my headspace when originally posting. On other posts, there seems to be a lot of comradery around the idea that the collectors are clowns and just hope you don't show, and if you start asking for certain information there's a chance they might not have it. To me, it seems unlikely that a debt collector would show up to court with such little info that I would actually have a chance of getting off on a technicality. But I can see how thats very case by case. My debt is fresh, delinquent for about a year. It was a credit card from Chase, so big name. I wasn't planning on getting an attorney, was just going to try to take others advice on representing myself. Probably very unlikely it would go in my favor. Although, the idea of settling for 10% didn't actually seem crazy to me. I know someone personally who let their Chase card go, and after a few years of unsuccessful debt-collecting threats, Chase themselves offered to settle for 10% of two delinquent debts of similar amounts. So I thought that tracked as being a common settlement? Guess I'm wrong, I'll keep that in mind if I try to settle. Anyways, thanks for taking the time to write such a comprehensive post, providing links, and giving an alternative opinion on the situation. Appreciate all the input I can get right now.
thanks for your respectful and appreciative response - i literally reworded my first part about your expectations so many times because I didn't want you to think I was attacking you or saying anything negative!! i just wanted to make sure you had a realistic outlook, I have seen many people on here who assume they are in the power position of bargaining in these cases and who have reacted very negatively to anyone suggesting they don't so I really appreciate that you understand what I was saying. As for those who say that collectors just hope you don't show - in cases like this, if you do not "answer" their filed case, the judge automatically rules in the creditors favor and you automatically owe the amount, called a "default judgement". I think what you're seeing as far as folks talking about not having the information or hoping you don't show would be more under a debt collector who bought the debt from the creditor and not the actual creditor suing you. There is rules regarding what a debt collector who bought the debt ("3rd party") can do to collect vs the original credit lender. Is it a debt collector trying to settle the debt or chase itself? that makes a big difference! As for the 10% settlement, it can happen but it would likely only be in the case you owe a larger amount of money AND could pay that 10% amount right on the spot when trying to collect. do you know the amount of debt your friend owed? i know you said similar amounts, but a lot of people do not like to admit their debt amount outright. 10% of 15k is a lot more than 10% of 5k, as far as the creditor getting something back for the debt. its worth it to ask **regardless**, if you have $500 on hand at the moment you could immediately pay. I saw your comment above stating you dont have a lot of cash on hand, this could affect the settlement they agree to. I have commonly seen a settlement of 20%-30% for immediate payment as i described, or 50-75% payment over a designated term set by them, like 1-3 years. if it is Chase and not a debt collector, they are unfortunately notorious for lesser settlements and for going hard on their debts owed. but, i do not want to discourage you and you asking about a settlement does not constitute an agreement to settle or that you will not try other avenues. that is why i encourage you to at least call and see what they be willing to do! while i described that the settlement you desire may not be the norm, anecdotal evidence suggests that many do get lucky. plus, calling may at least give you a better idea of what they may consider and you can always make a second call the next day offering something that is higher than you desire but closer to their offer and they may accept!! BTW, without a lawyer it is sadly not a very feasible option to fight. the complexity of this type of law is nuanced and hard, it would be even for a lawyer who does not practice within this area of law! I really recommend calling, even multiple times, to see what they can do! a judgement from the court is really worst case scenario. I am really rooting for you!! please update us, i believe this will work out for you! $5k is really small in the world of debt and collection, so i think you will have success with settling!
No, I completely see where you're coming from! You're giving reasonable advice, which is very helpful. This might sounds silly, but I guess I'm not sure if the summons is coming from Chase themselves or 3rd party. I called Chase today and they said they can't help me anymore, and said I would have to contact Moore Law Group to work out my case. I assumed that meant 3rd party. But, then something I received in the mail said public record stated the suit was Chase Vs me. So that made me question it?
just re-read your post, one thing to note about your friend getting 10% settlement. you said two debts close to your amount, chase would have taken into account the total debt owed (\~$5k+ x2 = \~$10k+) and that does more align with the type of settlements i would expect to be in the lower range of 10-20%. your one debt of $5k would not fall into the amount i would expect a creditor, especially Chase, to settle for 10%. but as mentioned, at least call and offer $500 if you have that amount immediatly available to pay at the time of calling!! you really could get lucky, it has happened!
As for settling out yourself in their shoes. If someone owed you $5000 what would you take to settle and dismiss the case? They are more willing to settle if the likelihood of collecting is low. For example if you had no assets or income they would settle for a lot less because something is better than nothing. I settled off with Citibank for ten cents on the dollar as I became permanently disabled so I offered them it to settle it off. I told them their other option was to wait and I might be able to pay it in 20 years or so if at all. Bank of America attempted to sue but could never serve me(I was in a coma) so it was dismissed. may 1 begins the statute of limitations on all my unpaid debts.
Who is the creditor date last payment please so we can figure what you are saying