Why settle a debt with Weltman, Weinberg and Reis?
Why settle a debt with Weltman, Weinberg and Reis for an old debt bought from an original debt collector. No-one wants to pay a debt collector. You may not like the calls and letters. You have to consider the practical aspects of what to do. You essentially only have 3 choices
- Fight and sue them back in state court
- Settle with them or
- File Bankruptcy
A practical and reasonable solution is normally best. If you settle then you have to pay the settlement which you may not be able to afford. If the debt has not been reduces to a judgment yet then you may be able to offer a 50% to 70% settlement of the debt. After they obtain judgment settlement becomes harder.
Sometimes the payment may have to be within 30 days or it may be spread out over a longer period of time. In order to reach the settlement they may ask for an agreed judgment. If you don’t pay the debt on time then the agreed judgment is entered and they can garnish wages, bank accounts, or file a judgment lien against a home or any real property you may have. In extreme cases I have seen furniture taken from a home and sold in Kentucky.
Why settle a debt
Debt collection law firms will take payments over time but if you pay any settlement over time then the collector will demand a higher percentage than an immediate payment. Never agree to a settlement offer you cant afford. If you fail to keep the agreement the collector will not bargain with you later and they will execute the agreed judgment. Debtor collectors love these agreed judgments because after you have signed them they have won the case. Your only remaining choices after you sign an agreed judgment are to either.
- File Bankruptcy or
- Pay the debt
- Ignore the debt and have them execute on the judgment garnishing wages bank account and selling property such as houses and cars.
Settling the Debt as an agreed Judgment
Getting you to sign the agreed judgment is a popular tactic with debt collection law firms because they no longer have to litigate in state court whether you owe the debt or what the amount is. They don’t have to prove you owe the debt. Paying the debt however means that you may encourage other debt collectors to file lawsuits against you. If you have other law suits and you pay this one then the others may start up collections again. When you have a lot of debt you may just have to file bankruptcy anyway.
If you can’t afford payment you may have to file bankruptcy or litigate in state court. Bankruptcy may or may not be an option. You have to do a short cost-benefit analysis. What do you really get out of filing bankruptcy or defending a lawsuit. Defending a mortgage delays the foreclosure. That may be important since you get some free rent. But there are times when you just want to get on with life and paying the debt in a negotiated settlement may be the best option. An attorney may charge 500 dollars for negotiating a settlement. But settlement may be the least damage to your credit. In some cases, it may be better than a Chapter 7 or Chapter 13.
If you’ve been sued for a $3,000 credit card debt it costs you more to litigate than to settle. The damage to your credit from a judgment or bankruptcy could cost you more than the debt. Still I believe you need to understand the risks of an agreed judgment.
Weltman Weinberg and Reis
Do not attempt to settle with Weltman Weinberg and Reis on your own. These are competent attorneys that represent the banks not you. Every phone call is recorded. Every letter is made a part of the record. The most common mistake a debtor makes is to admit they owe the debt. Any statement you make can and will be used against you as an admission. Any statement your attorney makes is in settlement and cannot be used against you. Your statements or admissions can toll the statute of limitations making the debt permanently collectible. Or at least collectible for another 15 years under Kentucky law.
Any Debt collector works for the creditor and for his commission in collecting the debt. He is not your buddy. You cannot rely on him for your legal advise. He works for the bank and he is not going to tell you why you don’t owe the debt. Debt Collectors will not tell you about the defenses you have to any lawsuit. He will only ask you for payments. These payments will normally be applied to late fees and charges first because he makes his highest fees from collecting the late fees. Be sure to work with an attorney to discuss your options and defenses.
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.