Jeffrey Bearss Settling The Collection Case

Jeffrey Bearss Settling The Collection Case

If a person lets their bills get to the point where they are being sued in a lawsuit, it is safe to say that they probably are not known for their money management. As such, this is usually not the only debt or suit that they have. So when it gets to the point of a lawsuit, quite often these debtors are tapped out.

Some clients will accept a lump sum discount, but often the debtor does not have a lump sum; even a reduced lump sum. In this instance a reasonable settlement would include installment payments. Now its easy to demand $400/month on a $3,000 debt, but if they had an extra $400/month, they probably would have just paid it and it would not have gotten to the point of being sued. So a reasonable settlement on somebody who is tapped out could be $50/month for six months, then put language in the order to increase it to $100/month after six months.

Learn More From Detroit Collection Attorney Jeffrey Bearss ato http://www.weltman.com

If you hold out for the $400, the debtor will simply file a motion with the court for installment payments, and the judge, who is elected, and who wants to be re-elected someday, by the debtor who appears in front of him ,will order $50/month anyway. And the debtors can do this all without the aid of an attorney. They go down to the court clerk's office, and get the court form for installment payments, fill it out, and file it with the court on their own.

There is no filing fee for this motion. So if you are going to end up with $50/month anyway, you can settle it now and get $50/month in the door right away, or you can hold out for the $400/month, and after 2 months the court will hear the motion on installment payments and order the $50/month. So while you are waiting for the hearing, you have lost two months' worth of payments. You can garnish, but again the debtor has the right to file a motion for installment payments. So sometimes half a loaf is better than none, in terms of a reasonable settlement or monthly payments. Then we proceed with our order to seize property, and start taking vehicles.

Learn More From Detroit Collection Attorney Jeffrey Bearss ato http://www.weltman.com