So, I’m a bit drained and might forget to mention some details. About 2 or 3 months ago, I got a letter from a lawyer or Credit Corps Solutions about an old debt. I didn’t respond because I didn’t have the money. I know it was a mistake, especially since I used to work as a bill collector and should’ve at least called them, but it’s too late for that now. Recently, I came into enough money to pay this debt. I settled another one first because it was already on my credit report. The one I’m being sued for wasn’t, so I figured they’d at least try to resolve that before taking me to court, but I guess not.
Since I got the money, I offered them a $1,000 settlement. I know they probably won’t accept it, but I figured I’d try to haggle.
Today, I came home from work to find a letter from a local law firm saying, “You’re being sued for a debt, we can help…” and it mentioned Credit Corps Solutions. Now, I need to figure things out fast. Since I have the money, should I just call them and pay them in hopes they drop the case, or should I try to settle for a lower amount? I don’t even know if trying to settle makes sense at this point, or if I should just pay the full balance. Should I contact this law firm or would that just end up costing more? I’ve never been in this situation before, so I’m just trying to figure out the best way to handle it.
Joss said:
Check your local justice court. Search for your name to see if a case has been filed.
Good idea. It looks like they filed a debt claim about 3 weeks ago.
Once you’re served, you’ll need to file a response. This will stop a judgment from happening until you can talk with them. Ask them to prove the debt exists.
@Joss
Okay, so I just need to wait until I’m served? I can’t settle with them now and avoid going to court? Who’s supposed to prove the debt? Are you saying they have to prove the debt is real before I pay? Thanks for the help, by the way.
@Tian
When you ask them to prove the debt, you’re making sure they actually own it. Sometimes, the original company sells the debt to others, like debt buyers, who may only have your info in a spreadsheet. Asking them to prove the debt shows who actually owns it. Debt buyers often buy it for cheap, so settling for $1,000 might make them a profit and is probably more than the court costs. This could help if you end up in court because you can show you offered a fair amount and who owns the debt.
@Tian
You don’t have to wait to be served. You can get a copy of the lawsuit from the court and file your response. This will stop them from getting a default judgment. It could also save you from paying service fees, which you’ll end up being responsible for. You’ll need to mail them a copy of your response before you file it, along with proof that you mailed it. In my area, you have to show proof that you mailed the response before filing it.
If you haven’t been served yet, wait until they serve you. Then, ask for arbitration. Most of the time, they won’t want to go that route because they’ll have to pay for arbitration fees. 2k isn’t much, so I doubt they’ll bother with arbitration since they probably won’t make a lot of money. In my case, they didn’t go through with it when I requested arbitration with Credit Corp Solutions.
Have you reached out to the company you owe the money to directly? I’d contact them, but they might add interest and legal fees. Even if they go to court, be careful about what you say since you’re in a legal process. And make sure to document everything—calls, agreements, who you spoke with, and the dates and times.
I’m not a lawyer, but from past experience, once you’re served, you need to file a response. If you don’t get served, they can’t prove you got the lawsuit. So, just wait to be served. Keep an eye on the court to see if there are updates. Once you’re served, you’ll need to file an answer. Ask for full debt validation in that answer. This will force them to prove the debt before proceeding. This will buy you some time and keep them from getting a quick judgment. Once they validate, you can try settling.