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Settlement Offer from Calvary SPV, LLC


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Hello everyone, I need a little help on this settlement offer I received from Calvary

Calvary sued me in Superior Court, I responded with a Motion to Compel Arbitration, my motion hearing is set for May 11, 2022.  In the meantime Calvary's lawyers reached out to discuss settlement and we agreed.  They sent me this settlement offer.  I don't agree with some of the wording especially the part where I acknowledge the debt because I don't lol, but wonder if I should go ahead and sign it.  Is there any way they can come back on me? 838508422_Settlementpg1.thumb.jpg.78dc3323bdd0cf2ff6af4b22e4fdeee5.jpg428008926_Settlementpg2.thumb.jpg.fa8dc7075372a9d8f87b08488abd9352.jpg607737267_Settlementpg3.thumb.jpg.dcb189a4667c609e7e8edc7361902e2e.jpg1266498480_Settlementpg4.thumb.jpg.f9a71a15c1498a41d0b0dc34e9c5078f.jpg326123600_Settlementpg5.thumb.jpg.ce7cee7c47335684c689424c70acd47b.jpg1823320927_Settlementpg6.thumb.jpg.841aedc66dec5ed99fe7f24c23b73ce7.jpg

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If your comfortable making consistant monthly payments of $300.00 and are willing to pay the total $2600.00 alleged debt then their dismisal with prejudice offor might be a good thing. Subsequently if you are late of miss a payment then you agree to allow a judgement be entered against you which will add expense and further damage your credit. 

With your pending motion to compel arbitration, and California Courts being consumer friendly the attorneys are aware of the costs they will have to pay amounting to almost half of the total, Cavalry would then most likely have their attorneys drop the case as cost prohibitive for the plaintiff. You could then enter your motion for dismissal with prejudice and a court order for the judge to sign. You  might additionally be able to file a cost bill with the Court, if allowed, to get them to pay your Court costs if California rules permit.

The attorneys know what could happen thus the submission of the final payment offer which is a last ditch effort on their behalf. 

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I didn't read the entire offer word-for-word, but I personally would not sign it for a couple of reasons:

Nevermind.  I was under the impression the settlement was for $300 period!  Geez, my bad...sorry.

Still....

1. They say the $300 per month does not include interest and attorney fees, and they don't spell out how much extra that might be.  They legally tell you how it's calculated, but could end up being a good chunk of change.

2. Like all these kinds of agreements, it's too long and filled with legalese 'traps' that could come back to bite you.

I'm sure there is a lot more ammunition for/against signing "their" agreement.  Just read the opinions of others who know a lot more than I and do what you feel is best -- cause I ain't no lawyer! ;-)

3. If you feel like pursuing the MTC, then Calvary would likely end up dropping it as cost-prohibitive.

Rough numbers: How much was the original amount of this alleged debt?  If it was $4k and they'll settle for $2600, that's not much of a discount.  However, if it was $10k+ the offer is more attractive.  I just wouldn't sign their agreement though.

 

Good luck!

Jimmy

 

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It looks like they are trying to do a stipulated judgement because you want to settle with payments rather than lump sum. There is way too much legalese here to be a simple settlement.

If you don't agree to all the terms, simply refuse the settlement by stating that what is in this document is not what you agreed to and continue on with your case. If they call to ask what the issue is, tell them that you are not admitting to the debt and that you do not want a stipulated judgement. If they say that they cannot agree to what you want, then inform them that you are continuing with your case.

I do suggest that you start saving up money for a lump sum settlement. They will come back to negotiating a settlement as the fees will get onerous as the case goes on, especially in arbitration (although California is very consumer friendly, even in court).

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@Rhonda you say "when they reached out to discuss a settlement and *we* agreed," were you not clear at that point if they meant the settlement amount would be $300 or the amount would be $300 per month??  Is the almost $2600 the original amount they say you owe, or was the amount higher, with the 'settlement' being $2600??

My first post above assumed the grand total settlement was $300 because of the way section 2 reads:  "Defendant agrees to pay a total of $300" -- not $300 per month.  But in the very next section it says "each payment will be credited against the account balance...."  IMO, it's all purposely meant to vague and confusing, especially for $300!  I realize they just fill in the blanks on a form they always use.

If you believed the grand total to be $300 then that may change your decision to proceeding along with the MTC, or presenting them with your own agreement.  I'm with @WhoCares1000 on what to do if you don't agree with their terms.

Even if the settlement IS $300 I wouldn't admit to owing it.  You would most likely be taxed by the IRS for the balance.  I believe fellow member @Goody_Ouchless had been successful in not having to pay tax on a balance by commenting that the text of his settlement agreement "explicitly stated that settlement was undertaken for the sake of expedience and in no way was an admission of debt."  IF you go the settlement route, it sure would not do harm to include that quote.

Best,

Jimmy

 

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29 minutes ago, Jimmy E said:

Even if the settlement IS $300 I wouldn't admit to owing it.  You would most likely be taxed by the IRS for the balance.  I believe fellow member @Goody_Ouchless had been successful in not having to pay tax on a balance by commenting that the text of his settlement agreement "explicitly stated that settlement was undertaken for the sake of expedience and in no way was an admission of debt."  If you go the settlement route, it sure would not do harm to include that quote.

I took out the acknowledgement part out too as Jimmy E suggested.  

Now it reads clearly as a single payment due on April 28, 2022 for settlement in full.  

 

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Thank You everyone for your input.  I understand their stipulation that they want to make sure they are getting the $300 and if not they want the whole balance of $2600.  I do have the money to send ASAP, certified, return receipt, overnight :)    @Bulldoger I crossed out everything you pointed out and will be emailing it back to the Lawyers.  @Jimmy E I also added that quote to the bottom.

 Crossing my fingers this goes well  

Thank You

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