I am international student and I owe tuition debt to school $13500 since I didnt pay on time they sent to collection agency and it went to $18000 .Can I settle with less amount with Collection agency because it's way too much money I don't think I can affordat this point of time .I can pay hardly the original amount .($13500)
How should I approach Collection agency for settlement of that balance to pay as much less as I can ?its already been with collection agency for more than six months as of now ?Will there be any severe consequences if I don't respond them and they aren't calling me since 3 months ?
I just want to save atleast some money and get back to school as soon as possible for this summer and I need transcripts to apply to other school.Kindly suggest me the best solution for my current situation ?
You have several options. You can set up a installment payment agreement favorable to you but you will likely pay interest. You can also negotiate a lump sum compromise amount, usually between 50 to 80% of the current balance.
If you are really sharp, and understand how collectors think and know how to press the right buttons you may be able to do even better than that.
Some variables include the size of the claim, the age of the claim, whether a statute of limitations issue is relevant, etc.
Often times, it's better to pay a consumer lawyer a modest fee to negotiate for you.
Debts are settled by having leverage and persuading a creditor that what you offer is the best they can get. A lump sum of cash plus some other story impacting the ability to pay is the most likely strategy to work. Having experienced representation is likely to be the best way to get the least costly deal. Hope this perspective helps!
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I can't really add much to the 2 previous answers, but if you are out of the country, you may be able to get them to agree to a much smaller amount. It's also possible the collector sent the debt back to the school since they did not get any results. Try contacting the school directly. Any sort of settlement should be in writing.
The dialogue on this website does not constitute legal advice nor does it form any sort of attorney-client relationship.
Every answer here contains correct advice. I would add that in my opinion, the most important thing is responding in a timely manner -- in writing -- to the collection agency, because you need to demand certain documents and information that should be in the creditor's possession -- as well as to challenge either the amount owed in total or in part. This is the only way to verify whether the creditor has an enforceable claim, as well as to prevent the creditor from creating a paper trail to later argue to a court that you implicitly agreed that you owe the full amount claimed by failing to object. To do this effectively, you need an attorney competent in this area, because if you leave anything out of your letter, it can have serious legal repercussions and you may lose valid defenses to the debt that you otherwise might have had. After sending the demand letter, your attorney will be in a good position to begin negotiating to lower the debt, using legal arguments as well as your personal circumstances to advocate effectively that you are unable and/or not required to pay the debt in full, and to negotiate a payment plan that you may find acceptable.
This comment is for general, informational purposes only. It is not legal advice and does not establish an attorney-client relationship. If you need legal advice, consult an attorney of your choice.
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