How to Settle Debt With Palisades Collection LLC

By Talk About Debt Team
Reviewed by Ben Jackson
Last Updated: February 17, 2026
5 min read
The Bottom Line

Palisades Collection LLC purchases old, charged-off debt and often sues consumers to collect. You must respond to their lawsuit with a written Answer within the court deadline to avoid default judgment. Negotiating a settlement or demanding proof of the debt can help you resolve the case and potentially pay less than the full amount owed.

Respond to Palisades

Facing a lawsuit from Palisades Collection LLC can feel overwhelming. You have rights, and you can fight back.

Ignoring a summons is the worst move you can make. Once served, you have limited time to respond.

Respond to Palisades Collection LLC's Lawsuit Today

Don't let the court deadline pass. Our partner Solo helps you file your Answer and negotiate a settlement before Palisades gets a default judgment against you.

Answer the Lawsuit

Your written response protects your legal rights. Without it, you lose your chance at a positive outcome.

Understanding Palisades Collection LLC is your first step. Knowledge gives you power in this situation.

What Is Palisades Collection LLC?

Palisades Collection LLC is a legitimate debt buyer based in Englewood, New Jersey. The company purchases charged-off debt from original creditors.

Most debt they buy is old and already written off. You probably haven’t heard from the original creditor in years.

Asta Funding is their parent corporation. When Palisades contacts you, the name might not sound familiar.

Debt buyers purchase accounts for pennies on the dollar. The original creditor has already taken the loss.

Many consumers ignore Palisades because they don’t recognize the company name. Ignoring them only makes things worse.

Who Does Palisades Collection LLC Collect For?

Palisades pursues delinquent debts originally owed to various creditors. HSBC and other financial institutions sell them charged-off accounts.

Banks sell debt when collection efforts fail. Palisades then attempts to collect on these accounts.

Palisades Collection LLC Reviews

Check the Better Business Bureau for Palisades Collection LLC reviews. Real consumer experiences give you valuable insight.

Reviews are mixed, with both positive and negative experiences. Some consumers successfully negotiate settlements with Palisades.

You don’t have to call them directly. Our partner Solo helps you negotiate online through a digital settlement platform.

4 Steps to Negotiate Debt Settlement With Palisades Collection LLC

You can negotiate a settlement at any point in the collection process. Debt settlement means paying less than the full amount owed.

Collectors often accept settlements because they close out delinquent accounts. You benefit by paying significantly less than the original debt.

Step 1: Assess Your Financial Situation

Write down everything you owe, including debt types and total amounts. Review your monthly budget carefully.

Calculate your income minus essential expenses like rent, food, and savings. Determine if you can afford a lump-sum payment.

Your realistic budget determines your settlement offer strength. Honesty with yourself prevents future financial problems.

Step 2: Contact Palisades Collection LLC

Once you know your financial position, initiate settlement talks. Start with an offer lower than you can actually pay.

Lower opening offers give you negotiation flexibility. Debt collectors expect some back-and-forth discussion.

Stay calm and professional during all communications. Document every conversation with dates and times.

Step 3: Get Settlement Terms in Writing

Never accept a verbal settlement agreement. Demand written documentation of all terms and conditions.

Read the agreement carefully before signing anything. Make sure you understand every provision and requirement.

Question anything that seems unclear or unfair. You have the right to understand what you’re agreeing to.

Step 4: Make the Payment

Once both parties sign the agreement, make your payment immediately. Pay on or before the agreed-upon date.

Keep proof of payment for your records. Request a satisfaction letter confirming the debt is settled.

What to Do If Palisades Collection LLC Sues You

Being served with a summons is serious. Never ignore court documents under any circumstances.

You have the legal right to respond to the Complaint. Palisades makes allegations about you and the alleged debt.

You must answer these allegations with affirmative defenses. Submit your written Answer to the court within the deadline.

Courts require proof for every allegation Palisades makes. The burden of proof rests entirely on them.

Palisades hopes you won’t respond to their lawsuit. Intimidation is part of their strategy.

Without your response, they’ll request a summary judgment. The court may grant judgment by default.

Default judgments allow wage garnishment and bank account freezes. They can also place liens on your property.

Filing an Answer is just the first step. You must attend hearings and respond to additional court documents.

Our partner Solo helps you respond to lawsuits and negotiate settlements. The digital platform keeps everything documented to avoid future disputes.

What Happens After You File Your Answer

Submitting your Answer doesn’t end the lawsuit immediately. Palisades has attorneys ready to pursue collection.

Your affirmative defenses force Palisades to prove their case. They must provide documentation supporting every allegation.

You have the right to demand debt verification. Hold Palisades accountable for their lawsuit claims.

Critical Actions to Take

  • Submit your Answer within the court-required timeframe
  • Never admit liability for the debt
  • Make Palisades prove you’re legally responsible
  • Answer every single allegation in their Complaint
  • Check if the debt is past the statute of limitations

Demand verification and validation of debt accuracy. As a debt buyer, Palisades may lack original documentation.

Old debt that changed hands multiple times is hard to verify. Missing documentation can lead to case dismissal.

Many consumers successfully fight debt lawsuits with proper responses. You can protect your rights and financial future.

Frequently Asked Questions

What is Palisades Collection LLC?

Palisades Collection LLC is a debt collection company based in Englewood, New Jersey that purchases charged-off debt from original creditors. They're a debt buyer owned by Asta Funding and typically collect on older accounts that original creditors have written off.

How do I respond to a lawsuit from Palisades Collection LLC?

File a written Answer to their Complaint within your court's deadline, typically 14-30 days depending on your state. Your Answer should include affirmative defenses that challenge their allegations and demand proof of the debt. Never ignore the lawsuit, as this results in default judgment.

Can I negotiate a settlement with Palisades Collection LLC?

Yes, you can negotiate a settlement at any point in the collection process. Start with an offer lower than you can actually pay to give yourself negotiation room. Always get settlement terms in writing before making any payment.

What happens if I ignore a Palisades Collection LLC lawsuit?

If you don't respond to their lawsuit, the court will likely grant a default judgment against you. This allows Palisades to garnish your wages, freeze your bank accounts, and place liens on your property.

How can I verify the debt Palisades Collection LLC claims I owe?

Demand written verification in your Answer to their lawsuit. Request original documentation proving you owe the debt, including the original creditor's name, account numbers, and complete payment history. As a debt buyer, Palisades may not have this documentation.