Lloyd and McDaniels is a collection law firm that represents debt buyers and lenders. They are listed as one of the top law firms in the nation and also listed by Thomson Reuters in SuperLawyers. One of the local staff attorneys for this firm is the son of a former federal judge.

They represent debt buyers and lenders who sue on defaulted loans. Debt buyers collect on debts they purchase for sometimes less than a penny on the dollar from the original lenders. They collect and sue for the original amount plus interest and fees which is sometimes pure invention by the holders of the debt.

You have a choice. Bankruptcy, settlement or sue the creditor or collector back. How do you determine whether to settle, file bankruptcy, or fight? How do you determine how much is a good settlement with Lloyd and McDaniels? Personally, I hate to pay a debt collector back any amount. It tends to encourage them to purchase charged-off debt.

Even if you repay the debt for 50% they make a profit in purchasing your account. Settlement encourages debt collectors to purchase charged-off accounts, sue, and collect. Still, at times, a settlement is necessary because litigation is not always practical.

Reaching Settlement with Lloyd and McDaniel Collection Attorneys

There is a practical consideration of what it costs to litigate against the debt collector. This isn’t just the monetary cost of the lawsuit. There are also the emotional costs of being dragged through court along with the time factor. Their demands are often based on how much they think you can afford. They forget that they may not be able to win in court.

The settlement should be based on whether they can win in court. Sometimes they have a case they can prove. But, sometimes they don’t. However, there is their expense in litigation. The settlement today is less costly and less work. The collection later is just a possibility. This uncertainty is a factor they should include in settling your debt. Plus there is the very real possibility of bankruptcy and collecting zero.

⎆ Settlement Terms with Lloyd and McDaniel

Debt collectors will almost always settle for payments over time. If you can make a lump sum immediate payment, debt collection attorneys will almost always take less. But, if you decide to make a payment over time, do not agree to a settlement you can’t afford.

To get a settlement, debt collectors almost always require an agreed judgment. If they file the agreed judgment, your credit score drops. Additionally, the agreed judgment will state you owe the entire debt if you don’t pay the settlement amount.

Debt collectors hope you fail to pay the settlement amount because upon default you owe the entire debt as a judgment. Then, they win the case without any further work or the costs of interest and attorney fees. So, if you pay they win. And, if you don’t pay they win even more. Of course, they agree to settle on those terms.

This tactic is a numbers game. Debt collection law firms like Lloyd and McDaniels already know that half the time debt buyers win when they litigate and half the time they lose. If they refuse to settle, they have to go to court. Then, they might not be able to prove the case.

⎆ Why Settle with Lloyd and McDaniel

If law firms like Lloyd and McDaniel file a collection lawsuit they are generally not going to go away. Litigation or bankruptcy may or may not be the best option. For instance, if this is just a small debt and the only debt you owe, debt settlement may be a practical solution. So, sometimes you fight, but, sometimes you have to be practical.

Remember, there are costs of defending a debt collection case. If you’ve been sued for a $1,500 credit card, it is not cost-effective to hire an attorney at $250 per hour and take off two or three days from work to fight the case. In this scenario, the litigation is more than the debt.

⎆ Get Advice from a Qualified Attorney Who Is On Your Side

Whatever you do remember debt collection attorneys like Lloyd and McDaniels work for the debt collector. Lloyd and McDaniel do not work for you. It is unlikely Lloyd and McDaniel will offer advice to you which is against their own interest or against their client. It is highly unusual for a debt collector’s attorney to tell you that you have options other than to pay the debt.

Lloyd and McDaniel is a debt collection law firm. Debt collection law firms rarely advise you to file bankruptcy or to sue lenders back. They normally don’t explain you may have defenses like the statute of limitations, the FDCPA, or lack of standing. Rather, they collect information from you to collect the debt. Then, they make demands for payment.

Resources for Bankruptcy

Louisville Kentucky Bankruptcy Forms

Bankruptcy Manual

Other Related Information

Credit Counseling to Meet Bankruptcy Requirements

Chapter 11 Business Bankruptcy Information

Short Sale Checklist in Louisville Kentucky

If you need help settling or defending a debt collection lawsuit, stopping harassing debt collectors, or suing a debt collector, contact us today to see what we can do for you. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.