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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default Does the Debtor Have Any Control When Settling a Debt

    A person owed money to a creditor who sued and obtained a default judgment. The person is now being required to submit proof of assets and income for the judgment, which is almost three times the amount of the original debt. The person responded by trying to negotiate a settlement. The creditor's lawyer asked for an offer. The person offered the original amount owed. The creditor's lawyer said "no".

    Does the debtor have any ability to get a settlement on the terms he prefers, rather than those demanded by the creditor? Can the creditor simply say "no" to negotiations?

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Does the Debtor Have Any Control When Settling a Debt

    No creditor has to settle with a debtor for less than what is owed on a debt.

    The creditor appears to believe that it can recover more than the debtor offered through judicial remedies, garnishment and execution, and will have a better picture of its ability to recover the money after the debtor provides the financial information they have demanded.

    The debtor is in a stronger position to negotiate if their income and assets are such that it will take many, many years for the creditor to collect the debt or if the creditor believes that aggressive debt collection will cause the debtor to declare bankruptcy.

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