I am not sure if my debt has been bought or not, though credit report shows my account "Charged Off". Now I am being contacted by a 2nd debt collection agency, as the first one gave up. Now this agency is a "law firm". They do say at the bottom of the letters they will be compelled to sue but that they don't want to.
So what am I supposed to do? I want to resolve this. I am 8k in debt, and I'd like to settle for way less than that. Should I do this now before they summon me to court, or do I wait until I've been served, and then try to settle? What do I say when I call them or should I send a letter asking to settle for 50% or something?
I have no money, no assets, no income personally, but I am married. However, the debt in question is in my name only and also in my mother as the co-signer. Not sure if they would come after my husband.
negotiating debt
Hi Mercy,
Send a debt validation letter to the collection agency through certified mail. If they are able to validate your debt, you can then try to negotiate a settlement with this collection agency.
Debt validation will let you know whether or not this collection agency has the power to collect from you. You will get a sample debt validation letter with this community. Settlement can lower your outstanding debt amount by 40-60%.
If your mother is the co-signer they ca come after your mother. You should try contacting them immediately even before they can sue you. Once a judgment gets entered against you, it stays there for 7 years.
Thanks,
Aaron