Settle a Debt After Being Served, Getting those dreaded legal papers delivered can make your stomach drop. Lawsuits and court hearings seem imminent. However, with the right debt settlement company on your side, even after being served you can still negotiate deals to resolve debts for less than you owe. Don’t lose hope – you have options to settle your way to financial freedom.
Settle a Debt After Being Served, Don't Despair - Smart Help Is Available
You still have viable options when facing a collections lawsuit:
- Hire a settlement company – Let professionals like Second Start Financial negotiate in your best interests, utilizing tested strategies to settle for substantial discounts.
- Contest the lawsuit yourself – File an answer disputing the claims to avoid default judgment. But settlements often require experienced negotiators.
- Do nothing – Ignoring lawsuits often backfires badly via default judgments, wage garnishments, and property liens. Don’t go this route.
How Debt Settlement Companies Assist
Reputable debt settlement firms help you respond quickly and effectively when served a lawsuit:
- They draft and file formal answers that prevent default judgments.
- They request validation of alleged debts and probe for collector errors.
- They gather evidence showing why creditors should settle for reduced amounts.
- They extend lump-sum or installment settlement offers backed by proof of your financial hardships.
- They relentlessly negotiate using compliance regulations and legal defenses as leverage until a favorable deal is reached.
This saves you time, stress, and money. Their expertise strengthens your position and nets bigger discounts off your balances.
Smart Settlement Strategies They Use
When negotiating debt settlements after you’ve been served, companies like Second Start Financial utilize proven strategies like:
Emphasizing Time Value of Money
Leveraging Affirmative Defenses
If debts fall outside the statute of limitations or were already discharged in bankruptcy, they keep pressing these strong legal defenses until creditors settle to avoid losing in court.
Calling Out Validation Failures
If creditors cannot validate debts to the firm’s satisfaction, this can sometimes result in dismissal. Even just the threat gives more impetus for collectors to settle at a discount.
A professional brings an impartial, data-driven approach to negotiate the best possible settlement on your behalf. They aren’t hindered by the emotional factors that can complicate DIY negotiation.
Maximizing Creditor Incentives
Debt settlement companies know what motivates creditors. For example, debt buyers may settle for dimes on the dollar to turn a quick profit on the accounts they purchased.