Settle With Receivable Solutions: What to Offer and How to Negotiate

Receivable Solutions filed a lawsuit against you. You opened the summons, saw the amount, and felt your stomach drop. But here's what they don't advertise: even after filing suit, they'll often settle for 40-60% of what you allegedly owe.

This guide shows you exactly how to negotiate with Receivable Solutions, what they typically accept, and how to protect yourself legally throughout the process.

Who Is Receivable Solutions?

Receivable Solutions is a medical debt collection agency based in Columbia, South Carolina. They buy unpaid hospital bills, emergency room charges, and other healthcare debts for pennies on the dollar. Then they pursue you for the full amount.

The company operates under several similar names, which creates confusion. If you're being sued, you're dealing with the Columbia, SC operation (800 Dutch Square Blvd). Their main contact number is 866-505-7419, though you might see calls from 803-790-0446.

As of 2024, Receivable Solutions has a C- rating with the Better Business Bureau and hundreds of complaints filed with the Consumer Financial Protection Bureau. Common issues: attempting to collect already-paid debts, refusing to validate debts when challenged, and failing to inform consumers of their dispute rights.

That track record matters. It tells you they make mistakes, cut corners, and can be challenged.

Why Receivable Solutions Will Settle for Less

Debt collectors buy portfolios of unpaid accounts at steep discounts. Receivable Solutions likely paid 4-8 cents per dollar for your debt. If they sued you for $5,000, they probably paid $200-400 to acquire it.

That creates room for negotiation. If you offer $2,000 to settle, they still profit handsomely. Going to trial costs them money: attorney fees, court costs, time. Most collectors would rather take a quick settlement than gamble on a judgment they might never collect.

Medical debt adds another factor. Many healthcare providers sell old accounts in bulk without transferring complete records. Receivable Solutions may lack the documentation to prove you owe the exact amount claimed. That's leverage.

Your Settlement Strategy Step-by-Step

1. Respond to the Lawsuit Immediately

You have 20-30 days (depending on your state) to file an Answer. Miss that deadline and Receivable Solutions wins by default. They get a judgment for the full amount plus interest and court costs.

Your Answer doesn't need legal jargon. You're asserting defenses and buying time to negotiate. Common defenses against debt collectors:

• Lack of standing: They haven't proven they own the debt
• Statute of limitations: The debt is too old to sue over (varies by state, typically 3-6 years for medical debt)
• Failure to state a claim: Their complaint lacks required details
• Payment or partial payment: You already paid some or all of it

Filing an Answer forces them to prove their case. That's when settlement talks often begin. Need help with your Answer? Our free screener can connect you with resources and determine if bankruptcy might be a better path.

2. Demand Debt Validation

Send Receivable Solutions a debt validation letter within 30 days of their first contact. Demand they prove:

• The original creditor's name and account number
• The exact amount owed and how it was calculated
• Documentation showing they purchased or were assigned the debt
• An itemized statement of the original charges

Send this via certified mail with return receipt. By law (Fair Debt Collection Practices Act), they must stop collection efforts until they provide validation. Many debt buyers can't produce complete documentation, especially for older medical debts.

If they fail to validate, you have grounds to move for dismissal of the lawsuit.

3. Calculate Your Realistic Settlement Range

Before making an offer, know your numbers:

Your floor: The minimum you'd accept to avoid trial (if they were offering you money—they're not, but this is your mental baseline).

Your ceiling: The maximum you can realistically pay, either as a lump sum or over 3-6 months.

Their likely range: For medical debt in active litigation, collectors typically settle between 40-60% of the claimed balance. Older debts near the statute of limitations? They might take 25-30%.

Example: Receivable Solutions sued you for $8,000. You can scrape together $3,000 now or $4,000 over four months. Your opening offer should be $2,400 (30%), with room to move up to your $4,000 ceiling.

4. Make Your Settlement Offer in Writing

Call their settlement department (866-505-7419, ask for settlements), but follow up in writing. Never negotiate major terms over the phone without documentation.

Your settlement letter should include:

• The account number and case number
• Your offer amount (start at 25-30% of the claimed balance)
• Whether it's a lump sum or payment plan
• A deadline for their response (10-14 days)
• A statement that this is without admitting the debt is valid

Key phrase to include: "This offer is contingent upon receiving a written settlement agreement stating that this payment resolves the matter in full and that you will file a dismissal with prejudice of Case No. [X] within 10 days of receiving payment."

That language protects you. You're not sending money and hoping they follow through.

5. Negotiate Their Counter-Offer

They'll likely counter at 60-70% of the balance. Stay calm. This is expected. Reply with a modest increase,maybe 35-40% of the original amount.

If they claim they "can't go that low," ask what they can do. Debt collectors have settlement authority up to certain percentages. They're testing whether you'll panic and pay more.

Use leverage points:

• "I'm considering bankruptcy" (suddenly they're motivated,bankruptcy might get them nothing)
• "I haven't been able to validate this debt based on what you sent" (if their documentation was weak)
• "This account is approaching the statute of limitations" (if true,check your state's laws)

If you're genuinely judgment-proof (no income they can garnish, no assets they can seize), tell them. A bird in the hand beats a useless judgment.

6. Get the Settlement Agreement in Writing Before Paying

This is non-negotiable. Do not send a penny until you have a written, signed settlement agreement that states:

• The exact settlement amount
• That this payment resolves the debt in full
• That they will file a dismissal with prejudice (meaning they can't re-file)
• The timeline for filing the dismissal
• That they will report the account as "settled" or "paid" to credit bureaus

Review the agreement carefully. Watch for language like "settlement of the current balance" (implying they might claim additional fees later) or vague dismissal terms.

7. Pay via Method You Can Document

Never pay cash. Use a cashier's check, money order, or bank check that creates a paper trail. Write the account number and case number on the check memo line.

Keep copies of everything: the canceled check, the settlement agreement, the dismissal filing. Store these documents for at least seven years. Debt collectors have been known to sell "settled" accounts to other collectors, who then try to collect again.

8. Verify the Dismissal and Credit Reporting

Within 30 days of payment, check the court docket online or call the clerk's office to confirm the case was dismissed with prejudice. If Receivable Solutions hasn't filed the dismissal by the deadline in your agreement, send a demand letter threatening to sue them for breach of contract.

Next, pull your credit reports (free at annualcreditreport.com). The account should be updated to reflect the settlement within 30-45 days. If it still shows as unpaid or delinquent, dispute it with the credit bureau and send a copy of your settlement agreement.

What If You Can't Afford a Settlement?

If even a reduced settlement is beyond your reach, you have options:

Payment plan: Receivable Solutions may agree to monthly payments on a settled amount. Expect 3-12 months max. Get the payment schedule in writing and never give them automatic bank access.

Judgment-proof status: If you have no income except Social Security or disability, no bank account with significant funds, and no property, you may be judgment-proof. They can't garnish protected income or seize exempt assets. You can inform them of this status and offer a small nuisance settlement.

Bankruptcy: Medical debt is unsecured and dischargeable in bankruptcy. If you owe multiple creditors or can't keep up with other bills, Chapter 7 bankruptcy might eliminate this debt and others for a $300-400 filing fee. Our screener can help you understand if you qualify.

Common Mistakes That Kill Your Leverage

Admitting the debt: Saying "I owe this but can't pay it all" restarts the statute of limitations in some states. Instead say, "I'm willing to consider settling the alleged debt to avoid litigation."

Paying before getting written terms: They promise a settlement over the phone, you pay, they claim there was a "miscommunication." Always get it in writing first.

Giving bank account information: Never authorize automatic withdrawals. Debt collectors have been known to take more than agreed or re-debit after settlement.

Ignoring the lawsuit: Hoping it goes away guarantees a default judgment. Even if you plan to settle, file your Answer to preserve your negotiating position.

Settling for more than you can afford: Agreeing to $200/month payments when you can only manage $100 leads to default and a judgment anyway. Be realistic about your budget.

Know Your Rights Under the FDCPA

The Fair Debt Collection Practices Act limits what Receivable Solutions can do:

• They can't call before 8 AM or after 9 PM
• They can't contact you at work if you tell them it's prohibited
• They can't harass, threaten, or use profane language
• They can't misrepresent the amount owed or their authority
• They must send written notice within five days of first contact
• They must stop calling if you send a written cease-communication request (but can still sue)

If Receivable Solutions violates the FDCPA, document everything. You can sue them for up to $1,000 in statutory damages plus actual damages and attorney fees. This gives you additional leverage in settlement talks.

What About Your Credit Score?

A settled debt is better for your credit than a judgment, but it still impacts your score. The account will be marked "settled for less than the full balance," which remains on your report for seven years from the date of first delinquency.

That said, the effect lessens over time. A three-year-old settled account hurts less than an active lawsuit and judgment. If your credit is already damaged by the delinquency, settling won't make it much worse.

Some consumers negotiate "pay for delete",where the collector removes the account entirely in exchange for payment. This is against credit bureau policy but sometimes works. If you try this, get it in writing before paying.

Real Numbers: What Receivable Solutions Actually Accepts

Based on consumer reports and settlement data:

• Lump-sum settlements: 40-50% of claimed balance is typical
• Payment plan settlements: 50-60% paid over 3-6 months
• Debts over 5 years old: 25-35% if near statute of limitations
• Debts under $1,000: Sometimes 30-40% because legal costs aren't worth pursuing

Your results depend on timing, your state's laws, how much you can pay upfront, and how well you negotiate. Collectors are more flexible near month-end or quarter-end when they have settlement quotas to hit.

When to Get Legal Help

Consider consulting a consumer rights attorney if:

• The debt is beyond your state's statute of limitations (they may be suing illegally)
• You already paid the debt or never owed it
• Receivable Solutions violated the FDCPA in ways you can prove
• The amount is large enough that a judgment would devastate you
• You're considering bankruptcy along with other debts

Many consumer attorneys offer free consultations and work on contingency for FDCPA violations. You don't pay unless you win.

The Bottom Line

Receivable Solutions sued you, but you're not powerless. File your Answer, demand validation, and open settlement talks from a position of knowledge. They paid a fraction of what they're suing you for, which means there's room to negotiate. Start at 30% of the claimed balance, get everything in writing before paying, and verify the dismissal. If settlement isn't feasible, bankruptcy might discharge the debt entirely. You have options,use them.