How to Settle Debt with Bank of America (2024 Guide)
Bank of America settles debts for 30-60% of the original amount, especially after five months of non-payment. You can settle even after being sued by responding with an Answer, making a written offer, and getting the agreement documented. Settlement saves money and prevents costly court battles.
Respond to LawsuitBank of America plays fair when discussing debt settlement options. If you’ve fallen behind on payments, you might face a lawsuit. You can settle by responding to the case, sending an offer, and getting everything in writing.
Owing money to any lender creates stress. When you can’t make regular payments to Bank of America, you need to act.
Bank of America Sued You? Respond in 15 Minutes
Don't let Bank of America get a default judgment. File your Answer now and protect your settlement options before your court deadline expires.
Answer the LawsuitBank of America offers checking accounts, savings accounts, credit cards, personal loans, and mortgages. The company is America’s second-largest bank. It operates in 40 countries worldwide.
You have several options when facing overdue Bank of America debt.
Consolidate Your Loan with Bank of America
Debt consolidation involves taking out one loan to pay off multiple debts. You make one monthly payment instead of juggling several creditors.
You need decent credit to qualify for low-interest consolidation loans. Poor credit scores may still qualify, but savings will be minimal. Interest rates will be higher.
If you don’t qualify for consolidation, consider other options.
Can I Make an Alternative Repayment Plan?
Bank of America may modify your loan terms. Contact them to explain your financial situation. They might agree to lower payments or reduced interest rates.
You need to provide clear details about your hardship. Be honest about what you can actually afford.
Should I Continue Making Regular Payments?
Repaying what you owe protects your credit score. Review your monthly budget and cut unnecessary expenses. Apply extra money toward your Bank of America debt.
Consider taking a part-time job or starting a side hustle. Extra income accelerates debt payoff and builds savings. Within months or years, you can eliminate the balance completely.
Can I Settle a Debt with Bank of America?
Settlement means paying less than you owe. You pay a lump sum or installments over several months. Bank of America considers settlement when you stop making payments.
The best time to settle is after five months of non-payment. At this point, Bank of America is close to charging off your account. They’re more willing to accept what you can afford.
Bank of America evaluates how collectible you are. They consider whether court action would recover more money. Factors that make you collectible include:
- You own a home
- You own assets like a car
- You have steady income
- You’ve only missed a few payments
- You’re not experiencing documented financial hardship
Bank of America knows lawsuits cost money. If you lack regular income or savings, they may never collect. Settlement avoids expensive court battles for both parties.
If you have savings available, settlement prevents your account from becoming a lawsuit. You save money and avoid court entirely.
Settle a Debt Lawsuit with Bank of America Before Court
You can settle at any stage of a lawsuit. FIA Card Services, a Bank of America debt collector, may appear on court documents. Follow these steps to settle before your court date.
Step 1: Respond to the Lawsuit with an Answer
Read the entire Complaint Bank of America filed against you. Note the amount they’re requesting. Compare their facts with your records.
File an Answer even if you plan to settle. Your Answer responds directly to each Complaint item. An Answer prevents a default judgment against you if settlement fails.
Our partner Solo helps you draft and file an Answer in all 50 states.
Step 2: Make an Offer to Start Negotiation
Contact Bank of America to propose a settlement. Calculate how much you can realistically pay.
Research suggests Bank of America settles for 30-40% of debt amounts. Start your first offer around 60% of the lawsuit value.
Contact the opposing attorney listed on court documents. Call, write, or email them. Use this wording for your initial offer:
“I see you’re suing me for $500 for case number [insert number]. I don’t have that money and I dispute the amount. But I have $250 that I can pay within 30 days to settle this debt completely. Please let me know if you accept.”
Bank of America will review your offer. They may accept or send a counteroffer. Multiple negotiation rounds are common before reaching agreement.
Our partner Solo negotiates settlements on your behalf automatically.
Step 3: Get the Settlement Agreement in Writing
Once Bank of America agrees, get written confirmation. You must follow settlement terms exactly, including payment deadlines.
Ask Bank of America to report your account as settled or paid in full. Request reporting to all three credit bureaus.
Save all documentation for your records. Keep proof of payment and settlement terms.
Settlement Example
Joe owes Bank of America $10,000. After months of missed payments, he gets sued. He responds to the lawsuit first, buying time to review his finances.
Joe offers 30% of the debt, or $3,000. Bank of America’s collectors send a counteroffer. After several rounds, they agree on 60%, or $6,000.
The settlement agreement requires Joe to pay within 90 days. He makes the payment while keeping his financial information secure.