You may have been sued by Lloyd and McDaniels which is a collection law firm representing debt buyers and lenders. This law firm is listed as one of the top law firms in the nation and is listed by Thomson Reuters in SuperLawyers. One of the local staff attorneys is a 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 may be invented 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 have made a profit in purchasing your account. Settlement encourages debt collectors to purchase charged off accounts, sue and collect.  Still at times settlement is necessary because litigation is not always practical.

Settlement over time with Lloyd and McDaniel

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

Settlement should be based on whether they can win in court. Sometimes they have a case they can prove. Sometimes they don’t. There is their expense in litigation. Settlement today is cheaper and less work. 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. If you decide to make 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. 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.   They win the case without any further work with interest and attorney fees. If you pay they win. 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 know half the time debt buyers win and half the time they lose when they litigate. If they refuse to settle they have to go to court. They may not be able to prove the case.

Why Settle with Lloyd and McDaniel

If law firms like Lloyd and McDaniel have filed a collection lawsuit they are generally not going to go away. Litigation or Bankruptcy may or may not be the best option. If this is just a small debt and the only debt you owe, debt settlement may be a practical solution. Sometimes you fight, sometimes you have to be practical. There are costs to defending a debt collection case.  If you’ve been sued for a $1,500.00 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 the end, the litigation would be more than the debt.

Get advice from a qualified attorney on your side

What ever you do remember debt collection attorneys like Lloyd and McDaniels work for the debt collector. Lloyd and McDaniel does not work for you. It is unlikely Lloyd and McDaniel will offer advise to you which is against their own interest or against their client. It would be unusual for a debt collector’s attorney to tell you that you have options other than to pay the debt. Lloyd and McDaniel is d ebt 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. What they will do is collect information from you to collect the debt.  They will make demands for payment.

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.

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