Skip to main content

Debt Settlement

As a law firm we see a lot of people who have debt issues.  One of the questions we are always ask is about other options besides bankruptcy.    In cases when a person has been suit for a debt that they owe, we offer the option to settle it (assuming they owe the debt and they are no defenses).  I can only speak for what I see in my jurisdiction which is New Jersey and a lot of the people who have these debt lawsuits are often suit by debt buyers. A debt buyer is a business that buys bad debts on pennies on the dollar and files a lawsuit against the debtor to collect on them. It is always an option to try to offer them a settlement and reduce the debt.  You can always offer a payment plan.

When making an offer consider your personal financial situation. I always tell my clients not to set themselves up for failure and offer something they can afford.  These companies are very happy to cooperate.  Collection is art. It is great to get a judgment but the collection process is tedious. The creditor is often happy to hear of an offer because they don't have to go through the collection process.  



For more information  please contact our office at 201-880-5563 or visit us at www.ruizdoolanlaw.com for a consultation.

Disclaimer: The contents of this website are of general nature and not intended to be a substitute for legal advice or the formation of a lawyer-client relationship. In order to be properly represented, please contact your local professional. In addition, the information given on this web site has been composed by a New Jersey attorney practicing exclusively in New Jersey. None of the information contained herein should be deemed to apply in other states, nor should this website be construed as an attempt by the author to practice law in any state other than New Jersey. If you have any question regarding this website please contact our office directly at (201) 880-5563.

ADVERTISEMENT: This website contains attorney advertisement within the meaning of the Rules of Professional Conduct governing the practice of lawyers in the State of New Jersey.  This website is considered an “advertisement.” Before making your choice of an attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If the representations made on this website are inaccurate or misleading, you may report this to the Committee on Attorney Advertising, Hughes Justice Complex, P.O. Box 037, Trenton, NJ 08625.





Comments

Popular posts from this blog

Invalidating a Contract under the Doctrine of Economic Duress

The doctrine of economic duress has significantly developed and expanded, in recognition of the ever-increasing complexity of the business world. Claims of economic duress in business litigation are becoming more frequent. Several courts, including the United States Supreme Court, have acknowledged that there are situations under which financial pressure may cancel an otherwise enforceable contract. See 13 S. Williston, Contracts, § 1603 at 664 (3d ed. 1970); United States v. Bethlehem Steel Corp., 315 U.S. 289, 62 S.Ct. 581, 86 L.Ed. 855 (1942); Hartsville Oil Mill v. United States, 271 U.S. 43, 46 S.Ct. 389, 70 L.Ed. 822 (1926).The definition of economic duress is set forth in Williston:1. The party alleging economic duress must show that he has been the victim of a wrongful or unlawful act or threat, and2. Such act or threat must be one which deprives the victim of his unfettered will. [13 Williston, supra, § 1617 at 704 (footnotes omitted)]

The courts in New Jersey have defined eco…

What is a Debt Buyer?

The basic business plan of the debt buying industry is to buy debt at pennies for the dollar. They usually by a list of consumer account without original documents to support these claims and without any documentation of how the “amount owing” was calculated.   The problem with this practice is that the debt buyer, has no incentive to obtain the proof required in a court of law because its investment is minimal. Typically a debt buyer sues consumers without any documentary proof that this particular consumer was indebted to the original creditor. . In every credit card account, the original creditor will possess: -           the debtor’s signed application/request for a credit card, 15 U.S.C. 1642 -           required monthly account statements, 15 U.S.C. 1637(b)  -           the credit card contract, amendments to the contract and -           charge slips or other evidence of each purchase and cash advance.          We always recommend our clients to defend these type of lawsuits so they …

Service of Process in New Jersey: Court Allowed Service of Process by Facebook.

In the recent case of  K.I.A.  v. J.L. Docket No. C-157-15 (Ch. Div., April 11, 2016), the court held that when service of process cannot be done by traditional means the rules of civil procedure allow an alternate form of service, like Facebook.  Rule 4:4-4(b)(3) permits a court to enter an order permitting service by means other than those provided by rule “consistent with due process.” This is the case of an adoptive parents filed a cause of action against the defendant to enjoin him from contacting their adoptive son, remove information about their son from social media and to contact their family. Defendant an out of State individual contacted plaintiffs’ child through Facebook, disclosed that he was the biological father and contacted the family. In their attempt to serve the summons and complaint to the defendant, plaintiffs’ made reasonable, good-faith attempt to effectuate personal service but were unsuccessful.  The plaintiffs made a request for the court to order substitut…