How to Negotiate Debt With Attorney Summons

If you have been notified of legal action being taken against you, you've got a tough road ahead. When a creditor files a suit against you in civil court, they are no longer serious about collecting from you simply by contacting you by phone. If you receive an attorney summons, you have several options. The best option, though, is to open negotiations with your creditor(s).

Instructions

1

Verify the validity of the creditor's claim. If the debt is paid in full or does not belong to you, you will need to appear in court to defend yourself. Consider retaining an attorney to help you present your argument. Collect all documents corroborating your claims (paid in full letters, bank statements, cancelled checks). Do not go to court if the debt does in fact belong to you. You cannot stop the legal process if it's already in motion. If the judge finds in favor of the plaintiff (the creditor), you will receive a copy of the decision, the method of collection (wage garnishment, lien) and how to contact the creditor.

2

Hire a credit counselor, if you can afford one. These professionals will be able to deftly negotiate a settlement or repayment arrangement for you. Start your search for a credit counselor at the National Foundation for Credit Counseling (see Resource 1).

3

Negotiate directly with the creditor if you cannot afford a credit counselor. Collect your income documents and any other documents relating to your default (unemployment receipts, medical bills, disability statements, letters from physicians).

4

Offer a one-time, lump sum payment to your creditor. This will show your willingness to negotiate and honor an equitable settlement. Only settle your debts if you are completely unable to repay the debts as they stand. Settlement will negatively affect your credit for seven years.

5

Ask for rate reductions, waivers for interest charges, late fees, over limit fees and other penalties. This will reduce the amount owed without officially qualifying as a "settlement."

6

Counter any offer from the creditor. Ask for reasonable rate reductions and interest charge waivers.

7

Get a copy of a repayment or settlement agreement in writing. Confirm all the numbers and keep a copy for your records.