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I have written a settlement offer letter to the lawyer representing the original creditor but no response. What can I do?

San Bernardino, CA |

I sent a certified letter to the lawyer a month ago and have not received a response. Then I sent another one to the original creditor about two weeks ago. I want to stop a wage garnishment and have offered to pay a lump sum. What should I do to get a response. I want to buy a house and I know I have to pay this off before I can. I have offered to pay a lump sum of $1850 of a $4,900 debt, plus the amounts already taken out of my paycheck, which is about $600 and what is still being deducted from my payroll check. I did this so I would be able to increase the amount if I need to, to get this settled.

Attorney Answers 4

  1. If they are not responding its likely that it is because they are not accepting the offer. You should try and contact them by phone and see if you can speak with someone, perhaps the attorney you sent the letter to. However, keep in mind that if they are already garnishing your wages, the incentive to settle for a lump sum at 50% when they are already receiving money from you is low.

  2. First you should call the lawyer to see if he has contacted his client regarding your offer. Sometimes lawyers get busy and they need a little push. The lawyer will then let you know whether the offer has been accepted, countered or simply rejected. Don't tell him you want to hurry the process to buy a house. You don't want the lawyer to think you feel any sense of urgency in the matter. Unless the creditor needs a quick infusion of cash your offer will probably be rejected. Good luck.

    The information provided herein is general information only and not legal advice. The information provided herein does not create an attorney client relationship and is not a substitute for having a consultation with an attorney. It is important to have a consultation with an attorney as the information provided in this forum is limited and cannot possibly cover all potential issues in a given situation.

  3. If they have a wage garnishment, they have very little incentive to settle. And even then, the settlements they are likely to accept (after a judgment and a successful garnishment) tend to be north of 50% of the balance owed. But again, with an active, successful garnishment, there isn't really much you can bring to the table.

    Instead of sending letters, you should be calling. In the collection industry, settlement papers (the letter) is ALWAYS generated by the collector, not the debtor. So, you get on the phone, hash out the settlement (assuming you can get one) and then THEY send you a settlement offer letter. Collectors will almost never respond to a written settlement offer from the debtor and they will NEVER accept it. They letter has to come from them.

  4. If they are already taking money out of your paycheck the likelihood is that they don't want to settle. You should call them and try to speak to the attorney maybe he/she may be willing to take a lump sum.