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DefendantNewb

Nervous, Settling Before Pre-Trial

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Has anyone had any experience with this? I called the attorney's office and made a settlement offer, which they accepted immediately.

They're in the process of putting together the settlement agreement, along with something about a dismissal that I have to sign (it must state that if I do not pay them the settlement, they'll sue me again. I'll have to read that one carefully), and that's apparently that. Once I receive the letter I have to review it/sign it, etc. and mail it back to them and they'll dismiss the case.

Are there any documents I should have them sign? What should the settlement agreement say? To make sure the debt isn't sold again, and that the original issuer, original account number, etc. is listed clearly and that the settlement amount completely satisfies the account and I have no further obligations of any kind to any party regarding the account.

I'm nervous they'll still pursue a judgement for the "rest," is that common? Or are they usually good about their settlement agreements? I made it clear that I needed the settlement letter stating that the account was satisfied before I'd remit any form of payment..

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First, why do you think they're so eager to settle? Do they not have admissible evidence to prove their case in a court of law? Secondly yes you should have some language there that considers the debt extinguished. If it is settled, then that can have tax consequences meaning they can send you a 1099C for the remainder of the balance so now it's attached to the back end of your income. And they could renege on the agreement because they are shady like that and screw you over by processing the payments late etc. So please look over some examples in previous threads if you choose to go the settlement route. Just make sure your bases are covered. Good luck!

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and the payment is a lump sum, not payments stretched over a period of time. They won't "process" my cashier's check "late." As soon as it's in their hands, the case is considered settled.

A settlement is a settlement, in a court of law they take place constantly. On my 'Final Pertrial Statement' it even lists settlement options, furnished by the court. I don't know why I'm so paranoid, I was just hoping for some solid advice or examples of pre-trial settlement happenings, not general sweeping statements and warnings about consequences lol

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Yes I am well aware that settlements occur in courts all the time. I spoke from PERSONAL experience. This means that everything I wrote above came from what I've actually been through. We've been going back and forth with an entity this year and have done everything according to the book, legally that is. Yet time and time again they have acted in bad faith. This warning was legitimate in nature and should not be discarded so easily. Hopefully they won't send you a 1099 C at the end of the year and the debt is considered paid in full. Because if you recall, PAID in full is not the same as SETTLED in full. And a settlement can have tax consequences if the forgiven amount is over $600.00. But I'm sure you knew that already.

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What sort of agreement did you enter into? Did they obtain a judgement or did you settle before court by agreeing to make payments? You didn't make mention of personal experience, or make reference to the details of the settlement process, so I had no inclination that you were experienced in dealing with it.

I simply called the attorney's office, stated that I wanted to offer a settlement, and they accepted my offer. The details were simple, I pay them a lump sum and the account is settled in full and they drop the suit. I only saved about 34%, but I'm cool with it. As for the 1099, the tax I'll pay on the forgiven debt will be far less than paying the entire amount via summary judgement.

I guess I'll feel better once I have the agreement in hand, and the check in theirs. The woman I spoke to made mention that she needed to "get the dismissal prepared today and faxed to the courthouse," she seemed eager to get that in so neither party had to show. I'm not exactly sure what the document will entail, but I have a feeling it will be a judgement stipulation. ie, if they don't receive the check I promised to give them as soon as I receive the settlement letter, I'll be liable. Seems fair enough, they're just covering their rear ends in case I'm bluffing. (The hearing is less than a week away)

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'So please look over some examples in previous threads if you choose to go the settlement route.'

I looked, I couldn't seem to find any threads that listed specifics to do with settlement problems. Or specifically, lump sum settlements before trial.

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Therefore it may take some time for you to find relevant information, but I assure you it is there. I have lots of experience and speak from personal experience and what I have read. That is why I have over 1,000 posts, believe me! I've discussed the settlement saga ad nauseum already in other posts. But what I'm trying to get across is that these guys don't always act admirably or in concert with the law. No scare tactics or anything to take the wind from your wings. Indeed most here will tell you I encourage just about everyone! Ultimately me and other posters have been burned during the settlement process, which is why I said what I said. To be quite honest, I truly hope everything goes well in your case and will send good thoughts your way.

I'm sure you'll sign a settlement stipulation which is common. And apparently you're already expecting the 1099C so I guess you'll be okay, just make sure to add something to the contract and initial it to cover your bases as you mentioned earlier.

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I tried running a search and sifting through the first few pages of the settlement threads, but nothing seemed to fit.

I wonder what they'd try to pull. At this point I have no reason to believe that they're planning on renigging, but I'll expect the worst and hope for the best, that always seems to be the logical way. I'll call the clerk and make sure they've dismissed the case after I've given them the check, and if they sue me again for the remaining balance I'll file the settlement agreement with my Answer, along with the photocopy of the check. A settlement is binding, they can't renig on it if it's worded properly. No judge would hear that. So I'm just going to stay positive

Edited by DefendantNewb

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Update:

They were insistant that I sign a consent order. Which I am refusing. DO NOT SIGN CONSENT JUDGEMENTS/ORDERS WHILE IN THE SETTLEMENT PROCESS. Shady SOB's might renig and take you for the full amount.

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