When I file an answer to a Consumer Credit transaction, on the box marked Other, may i request for a settlement to be negotiated
Would it have any adverse effect because I tried to get a settlement before court?
2 attorney answers
Happy Thanksgiving. First, the most important thing is that you file an answer to the lawsuit regardless if you settle or not. If you do not answer the legal papers, they can get a judgment for the entire amount due plus fees and costs. Second, you can discuss settlement at anypoint during a litigation. However, I beleive the sooner the better. If the creditor pays their attorneys alot of legal fees to litigate the case, they are less likely to settle or may want more than they would have wanted had you settled earlier. Good luck.
I would suggest that you contact a debt and Bankruptcy Attorney to see your options. Many of us provide free consultations. There are many consequences related to settlements, including tax consequences. Depending on the size of your debts, it also may make sense to file for bankruptcy which will stay the collection of the debt, absent fraud or the like. And generally, in your answer, Defendants generally don’t reflect a desire to settle. Best of luck, Barbie Lieber 212-949-5586
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