Settlement Question

[tricha2u]

Hello everyone. Im settling a debt with a credit card company who took me to court due to nonpayment. The attorney on their behalf is offering to settle the debt for 50% less than what was orignially owed and stated he would dismiss the case with prejudice.

I asked If I could get a settlement agreement in writing before I sent the money and the lawyer would not agree.

The credit card co has never reported to the credit agencies. (not yet at least)

Here is my question. If I settle with the lawyer can they sell the debt to a collection agency even if they are dropping the case?

Once the debt is settled, what is the probability that they will report it on my credit reports?

Thanks for your help guys

[booger69]

Get the agreement in writing 1st!!!! Once they have your money you will have no leverage to negotiate with. Do they already have a judgment? If so, you may not have much leverage anyway (unless you are judgment proof). But if the suit is still pending, negotiate the best terms for youself and get everything in writing before you give them money. Maybe even try to get them to 33% and removal/deletion of TL's. They really don't want to have to go to court any more than you do.

[MountainDude]

I agree, DO NOT send them any money until you have a settlement SIGNED BY THEM in your hand.

The legal term RES JUDICATA basically states that a valid and final judgment on a claim precludes a second action on that same claim. You want to see magic words like "final judgment on the merits" in the Settlement Agreement. However, I'm pretty sure I've seen posts on here where CA's have tried exactly what you're worried about (settling with one, then a CA coming back and suing you again).

All I can say is be carefull with this attorney, he sounds like a total sleeze ball. There is no good reason for not putting a settlement offer in writing. In fact, you almost always sign the settlement offer when you send it to someone, unless you decide to settle and sign in person.

j