How to Negotiate a Debt Settlement with a Law Firm
You can negotiate debt settlement with a law firm on your own without expensive attorneys. Use defenses like statute of limitations and debt validation to strengthen your position. Start with low offers and work toward settlements that can reduce your debt by 30-75%.
Settle Your DebtOwing an old debt creates constant mental stress. You wonder how you’ll pay it or if someone will pursue you.
Debts rarely disappear on their own. A creditor may write off your debt, but they usually sell it to a debt collection agency. Once a collection agency purchases your liability, they begin aggressive collection efforts.
Negotiate Your Law Firm Debt Settlement Now
Don't wait for a lawsuit from debt collection attorneys. Start negotiating your settlement today and reduce what you owe by up to 75%.
Start Settlement NegotiationMost debt collection agencies start by notifying you they own your debt. Ignore their notification and they’ll contact you through letters, emails, and phone calls. Sometimes they’ll reach out through your job or social media accounts.
In some cases, the debt collection agency is a law firm. Creditors turn over debts to law firms when the amount is significant or when there’s high likelihood of obtaining a judgment.
Having a lawyer pursue your debt creates serious concerns. Attorneys know the ins and outs of debt collection. They’re less likely to accept standard defenses.
You still have options when a lawyer pursues you. You can fight back and protect your rights.
Hire Your Own Attorney to Fight Back
When a law firm pursues you for debt, you can hire your own representation. A debt settlement attorney negotiates with the other party to reduce or eliminate your debt.
Debt settlement lawyers use various defenses to protect you from lawsuits. They may argue the statute of limitations has expired. They might determine you’re a victim of identity theft. They could prove the law firm lacks proper documentation.
If your lawyer’s defenses apply to your case, the law firm must drop any potential lawsuit.
In a best-case scenario, the debt collector writes off the entire debt. However, that’s unlikely if you truly owe the money. While a lawsuit may be off the table, they can still pursue you with calls and letters.
A debt settlement lawyer can attempt to settle your debt. You may reduce the amount you owe by 60% or more.
If the debt collector agrees to settlement, you pay the reduced amount. They report the debt as paid. You won’t hear from them again about the debt.
Hiring an attorney means paying for their services. You may spend several thousand dollars for their assistance.
When your debt is less than $2,000, hiring a lawyer may not make sense. Even if you settle for half the amount, you’ll still owe legal fees. You won’t save much except the headache of dealing with collectors.
Consider the amount you owe and attorney fees before hiring help. If settling for half plus attorney fees equals the total debt, handle it yourself.
Defend Yourself Against the Law Firm
Sometimes you should negotiate with the law firm yourself. The expense of hiring an attorney doesn’t make financial sense.
If you decide to negotiate on your own, beef up on defense strategies. When the law favors you, understand how the defense applies to your case.
The most straightforward defenses include statute of limitations, identity theft, and previous payoff.
Statute of limitations defenses rest on time limits for collection lawsuits. If the statute limits credit card debts to three years in your state, you have a defense if more than three years have passed since you incurred the debt.
In an identity theft defense, you argue someone stole your information. They used it to borrow money illegally without your knowledge. You’ll need to report the incident to authorities and gather evidence.
The debt collection law firm may lack complete information if you previously paid. Provide evidence you reimbursed the original creditor with payment receipts, cancelled checks, or other proof.
Multiple other defenses exist in debt collection cases. Choose one that fits your circumstances. Once you establish a defense, negotiating the debt becomes easier.
Request Debt Validation From the Law Firm
Before attempting to negotiate, have the law firm validate your debt. By law, any collection agency or law firm must prove it has the right to collect. It must also confirm the amount of the obligation.
Typically, a law firm must provide notice of collection attempts. They must give you thirty days to dispute it. Once that period passes, they can begin regular collection activities, including suing you.
To buy time and ensure proper validation, make the law firm prove the debt. The burden of proof rests on them to establish you owe money.
You can force validation by sending a Debt Validation Letter. Our partner Solo can help you request proper documentation from collectors.
If they validate the debt, use your defense strategy to negotiate better terms.
Negotiate a Settlement With the Law Firm
People with solid cases have the best chances of significantly lowering their debt. Debts with soon-to-expire statute of limitations make law firms more willing to negotiate. Other defenses can also help.
Start by contacting the law firm and requesting the assigned attorney. Let them know you’re reaching out about a debt. Give them identifying information about the claim. An account number or identifier will appear on the notification you received.
Next, explain any defense you have. If the statute of limitations has expired, explain why. Notify them of other defenses, like incorrect balances or potential bankruptcy filing.
Once they understand your defense, tell them you wish to settle the matter.
Start low with your negotiations. For debts old enough to satisfy statute of limitations, offer as little as 25% of the original balance. The law firm knows it has no lawsuit option, so it may settle more readily.
If your debt doesn’t meet statute of limitations, you can still negotiate settlement or payment plans. However, you likely won’t reduce the amount by more than 50%. In most cases, law firms only agree to eliminate 20% to 30% without strong defenses.
Even small savings help you eliminate debt. If 20% to 30% reduction is all they’ll agree to, take the offer and pay off the amount. If you can’t pay at once, work out a manageable payment plan.
While a notice from a law firm is concerning, you have rights. Work out a settlement and avoid further credit damage.
Example: How One Person Settled Successfully
Kevin was sued by Kirschenbaum, Phillips & Levy P.C. for an old credit card debt. He responded to the lawsuit, giving himself time to negotiate without losing by default. After reviewing his finances, Kevin determined he could pay up to 80% of the debt. He sent a settlement offer starting at 50%. After several rounds of negotiations, they agreed to settle at 75%. Kevin saved money and moved on with his life.
Settle Your Debt on Your Own
What’s better than paying debt in full? Negotiating an amount you can afford. Through debt settlement, you may reduce your liability by 30% or more. In the best cases, law firms agree to knock off up to 75%.
Hiring a lawyer or debt settlement agency is expensive. Sometimes it costs more than the debt you owe. That’s why settling on your own makes sense.
You can settle debt independently, save money, and avoid unreliable debt settlement companies.
Our partner Solo offers a tech-based approach to debt settlement. The software sends and receives settlement offers on your behalf. It helps you negotiate the best deal for your circumstance.
Once an agreement is reached, the platform helps you manage settlement documentation. It forwards your payment to the creditor, law firm, or collection agency. Your financial information stays protected from unruly debt collectors.
Real Customer Experience
“I’m very thankful for third-party negotiation. Having someone negotiate the settlement was instrumental in resolving this case. It saved me from two giant headaches: I didn’t have to deal with the plaintiff’s lawyer, and I didn’t have to go to court. I also love that payment was processed securely. I was nervous about sharing my personal financial data with the other side, but my information was protected. I hope I never get sued again, but if I do, I would use this approach again in a heartbeat. It really saved me a ton of time and heartburn and kept me from having to be my own lawyer in court.”
Understanding Your Options When Law Firms Pursue You
When a law firm contacts you about debt, you have several paths forward. You can hire your own attorney if the debt amount justifies the expense. You can defend yourself using valid legal defenses. You can request debt validation to confirm the law firm’s right to collect.
You can also negotiate directly with the law firm for settlement. Starting with a low offer gives you room to negotiate. Understanding your defenses strengthens your negotiating position.
No matter where you find yourself in the debt collection process, help is available. You can resolve your debt and protect your financial future.