Debt Settlement Explained by a Lawyer

Getting contacted by a debt collector doesn’t mean you’re out of options. In fact, you might be surprised to learn that 95% of debt cases settle before ever reaching trial. The key is knowing how to negotiate effectively and protect yourself throughout the process.

Consumer protection attorney Jonathan Yong of Guardian Litigation Group brings years of experience from both sides of the debt collection industry. Having worked as corporate counsel in financial services before defending consumers, he reveals the insider strategies that can help you settle debt for less while avoiding common traps that cost people thousands.

You can settle debt at any stage of the process

One of the biggest misconceptions about debt settlement is timing. Many people think they can only negotiate before a lawsuit is filed, but that’s simply not true.

“Settlement is possible at any stage,” explains Jonathan. “You can negotiate before a lawsuit, during litigation, or even after a judgment has been entered against you.”

This means even if you’ve been sued or already have a judgment against you, it’s not too late to work out a deal. Debt collectors and law firms want to get paid, and they often prefer guaranteed settlement money over the uncertainty and expense of continuing litigation.

First step: Verify the debt collector owns your debt

Before you negotiate anything, you need to confirm the debt collector actually has the legal right to collect from you. This is especially important when dealing with debt buyers who purchase old debts in bulk portfolios.

“Always verify the debt collector actually owns your debt before negotiating,” Jonathan emphasizes. “A nightmare scenario would be settling with a collector who didn’t have the right to sue you, then getting sued again by the original creditor.”

Request documentation showing:

• The original creditor's name and account details
• Proof of the debt amount claimed
• Documentation showing the collector's ownership of the debt
• Chain of title if the debt has been sold multiple times

If they can’t provide proper verification, you may have grounds to dispute the debt entirely.

Respond to debt collection lawsuits fast with Solo.

You can settle debt at any stage of the process

Debt settlement isn’t just about reducing the principal amount you owe. There are several ways to structure a deal that works for both parties:

• Reduced principal settlements: The collector agrees to accept less than the full amount owed. These are most common with debt buyers who purchased your debt for pennies on the dollar.
• Extended payment plans: You pay the full amount but over a longer period with manageable monthly payments. This often includes stopping interest from continuing to accrue.
• New interest rates: Renegotiating the interest rate to something more affordable, which can dramatically reduce your total payment over time.
• Combination approaches: A reduced principal amount paid through an extended payment plan, giving you both savings and manageable payments.

Financial hardship can improve your settlement terms

If you're facing genuine financial difficulties, documenting your hardship can significantly improve your negotiating position. Debt collectors understand that getting something is better than getting nothing.

Jonathan recommends sharing information about:

• Limited income or unemployment
• Medical expenses or health issues
• Recent major life changes like divorce or job loss
• Fixed income situations like Social Security or disability

However, be strategic about what you reveal. Don't provide bank account information or detailed asset information that could be used against you later.

Let's consider an example.

Example: Maria was sued by a debt buyer for a $8,000 credit card debt. She had recently lost her job due to company downsizing and was living on unemployment benefits. Maria used Solo to file her Answer to prevent a default judgment. Then she gathered documentation of her job loss and reduced income. When she reached out to settle, she offered $2,400 (30% of the original debt) as a lump sum, explaining her financial hardship. The debt buyer, realizing that garnishing unemployment benefits would be difficult and lengthy, accepted her offer. Maria resolved an $8,000 debt for $2,400 and avoided a judgment on her credit report.

Always get settlement agreements in writing

This cannot be overstated: never pay anything until you have a written settlement agreement that clearly outlines all terms. Verbal agreements are meaningless and can lead to serious problems later.

Your written agreement should include:

• The exact settlement amount and payment terms
• A statement that the debt will be considered satisfied upon payment
• Whether the account will be deleted from your credit report or marked as settled
• A clear end date for the debt collection efforts
• Protection from future collection on the remaining balance

"Get everything in writing before paying anything," Jonathan stresses. "I've seen too many cases where consumers paid based on verbal promises, only to have the collector come back demanding more money later."

Understanding the tax implications

When debt is forgiven through settlement, the forgiven amount may be considered taxable income by the IRS. If you settle a $10,000 debt for $4,000, you might receive a 1099-C form for the $6,000 difference.

However, there are exceptions. If you were insolvent (your debts exceeded your assets) at the time of settlement, you may not owe taxes on the forgiven debt. Consult with a tax professional to understand how debt settlement might affect your specific tax situation.

Different collectors, different strategies

Your settlement approach may vary depending on who's collecting the debt:

• Original creditors like banks and credit card companies often have more complete documentation and may be less willing to accept deep discounts. However, they may offer favorable payment plans or interest rate reductions.
• Debt buyers like Midland Funding or Portfolio Recovery purchased your debt for a fraction of its face value, making them more likely to accept significant reductions in exchange for guaranteed payment.
• Collection agencies working on behalf of original creditors fall somewhere in between, with their flexibility often depending on their agreement with the original creditor.

Settle your debt for less with SoloSettle.

Red flags: Avoiding debt settlement scams

While legitimate debt settlement is possible, the industry is unfortunately full of scams. Be wary of companies that:

• Demand large upfront fees before settling any debts
• Promise to eliminate all your debt for pennies on the dollar
• Tell you to stop communicating with your creditors entirely
• Guarantee specific settlement amounts without reviewing your situation
• Pressure you to sign up immediately without explaining the risks

Legitimate settlement help, whether from an attorney or a platform like SoloSettle, should be transparent about costs, realistic about outcomes, and focused on your specific situation.

When to consider professional help

While many people can successfully settle debts on their own, certain situations benefit from professional assistance:

• Multiple large debts requiring complex negotiations
• Active lawsuits with tight deadlines
• Disputes over debt validity or ownership
• Collectors refusing to negotiate in good faith
• Complex financial situations involving business debts or guarantees

Whether you work with an experienced debt settlement attorney like Guardian Litigation Group or use Solo's DIY tools, the key is taking action rather than ignoring the problem.

Take action before it's too late

Debt settlement is a powerful tool for resolving overwhelming debt, but it works best when you're proactive. Waiting until wages are being garnished or assets are being seized dramatically reduces your leverage in negotiations.

If you're dealing with debt collection, start by understanding your rights, verifying the debt, and exploring your settlement options. With the right approach and realistic expectations, you can often resolve debt for significantly less than you owe while protecting your financial future.

Remember: debt problems don't define you, but how you respond to them can determine your financial trajectory for years to come.

Transcript

Hannah (01:36):

Hello everybody, it's me, Hannah with Team Solo. Thank you so much for joining the Debt hotline. We actually have a very special guest joining. He is Jonathan Young, who is a part of the Guardian Litigation Group, and we're to have him explain a little bit about debt settlement As an expert in the debt settlement space, Jonathan's got a lot of experience and he can kind of explain the whole process and tell us more about how it works. Jonathan is a senior partner at Guardian Litigation Group, which is dedicated to defending and empowering consumers in debt related legal matters. He's a graduate of Trinity Law School and he excelled in moot court co-authored The Laws of Korea, which is a legal textbook and earned recognition in alternative dispute resolution through Pepperdine Law School. After founding a successful law firm himself and serving as Trinity's youngest law professor, Jonathan continued his commitment to public service as a director of the Orange County, Korean American Bar Association, and as an advisor to the city of Irvine. His firsthand experience as corporate counsel and financial services inspired him to join Guardian Litigation Group to help protect the rights of vulnerable consumers nationwide. So again, we're really excited to welcome Jonathan Yang here to the debt hotline. Jonathan, could you take a moment to just say hello, introduce yourself and fill in any gaps that I might've missed?

Jonathan (03:01):

Yeah. Hi, nice to meet you. Thank you for having me. It's so nice to be here. Just one little point of clarification on the Laws of Korea, that book was so well-written by many different people. I was a contributor. I am not a co-author. There are many attorneys that are very prestigious that have contributed to that, and it was an honor to be part of that project, but I can't take that kind of credit. But yes, thank you for having me. Happy to talk to everyone here. And as a disclaimer, one of those attorney disclaimers that we all like to do, everything I say here is not legal advice. It's for educational purposes. If you have specific circumstances and need legal counsel, you should hire an attorney that is licensed within your state that is able to help you on a case by case basis.

Hannah (03:48):

Yes,

Jonathan (03:49):

Otherwise, yeah.

Hannah (03:50):

Thank you so much for clarifying, Jonathan. Yes, even though Jonathan is an attorney with lots of experience in this topic, he's not your attorney. So anything we say during this podcast episode is not legal advice, but rather educational information and resources. But that being said, we are very excited to jump into some questions about debt settlement. Jonathan, can you tell us a little bit about Guardian Litigation Group and what the group does and how long you've been working there?

Jonathan (04:19):

Yeah, so I've been working at Guardian Litigation Group pretty much from the inception. I wasn't part of the firm when it was first created, but I did help the managing partner now Jonathan Greenway, to create the firm. It was kind of his brainchild, but it was really cool to be part of it. And what we do at the core is we defend consumers that have, for some reason or another breach their contract with their creditors to pay their ongoing debt obligations, and we resolve that by either selling debt or representing them in court vigorously to get cases dismissed, and it ranges from there to different collateral services that could be related to anything have to do with consumer debt.

Hannah (05:05):

Awesome. So can you tell us maybe, I don't know if you have any recent success stories. I know obviously you can't share names, but can you tell us maybe what a typical case looks like at Guardian Litigation Group and how you guys go about helping people resolve their debts?

Jonathan (05:21):

Sure. A lot of the consumers that we work with are already in debt and have fallen behind on their credit card payments. That's kind of a lot of the clientele that have come to us for help. So when I say success, for us success is being able to come to a resolution with the opposing counsel or with the collector, a main creditor to get some kind of a settlement in place. A lot of the times it is for a lot less than what a consumer would owe sometimes it could be for the full balance, it could be for different rates, but for us, being able to settle that case and getting people on the way to financial health is the success for us. I can't quote specific cases, but I've gotten cases where I've had completely thrown out full $30,000 debt loads that have been sued and been able to win. I have also been able to get settlements different varying ranges.

Hannah (06:21):

Very cool. So it sounds like you've even been a part of cases where the debt's been forgiven entirely.

Jonathan (06:27):

Well, I wouldn't say forgiven. I would say that we were able to get the case dismissed due to our vigorous defense.

Hannah (06:33):

Oh, okay. So you were able to get the case dismissed?

Jonathan (06:35):

Yeah, we were able to win due to legal opposing counsel not meeting their burden of proof.

Hannah (06:42):

Gotcha. Okay. Yeah. Well, we'd love to dive a little deeper into what all that means. I've got a list of questions to prepared that I wanted to ask you to tap into your expertise, Jonathan, and learn more about the debt settlement process from a legal perspective, hoping you could share your insights. The first question I have for you is how does negotiating a settlement work, and I know it sounds like you especially help with defense, so what does it look like on the defensive side for an attorney to help someone represent themselves in a debt collection case, whether it's through settlement or getting the case dismissed?

Jonathan (07:19):

Sure. Well, so it depends. There's consumers that we're helping that have not had a lawsuit filed against them, but they've already defaulted and not been paying. And then there are those circumstances. Then a consumer has received the summons and has received a lawsuit. But in both cases, what we're trying to do is we're trying to reach out to the creditor and in the United States, when you've defaulted on a debt, the great thing is we've gotten rid of debtor prison. So most people, when I first talked to a client, they're always like, am I going to jail? I'm like, no, you're not going to jail. Don't worry about that. You're not going to jail. This is just a money thing. So the worst that they can do is collect money from you, which is, it sounds terrible, but it's not as bad as going to jail.

So in the United States, I don't know the exact circumstance or statistics, but I always tell people a majority of cases settled probably somewhere north of 95% of cases settled. For me personally, in general practice, not just including consumer debt, I would say I've settled almost every case before going to trial and of course having consumer debt, I've had to go to trial and defend consumers, but that is not the normal case in the United States, most people want to settle. So that means that you had some sort of a contract that was in place and we've come to an accordance satisfaction, meaning it just a new agreement and a new arrangement, and that can be for a longer period of time to pay than you originally would have. It could be for a reduction of the amount of principal and interest that's owed. It could be for a lesser amount than that. It could be to have a new agreement with new interests tied to it. So that's kind of the gist of it.

Hannah (09:04):

Very cool. So it sounds like there are different ways that you can settle a debt. You mentioned you could kind of stretch out the period of time that they originally required for you to pay back the debt so that you can get on a new payment plan that works with you and your current financial situation, or you can come to an agreement to pay off the debt, but at a lesser amount and knocking off some of the interest that was involved as part of the debt. But yeah, so settlement might look a little bit different depending on your case and your financial situation you're facing, et cetera. Right?

Jonathan (09:36):

Yeah, it depends because you could be talking to different people if the lawsuit's been filed. We're generally talking to attorneys and they also have law firms with their own specialized department of people that are speaking about collection efforts or if it's a collector, they have a different format and different script and different obligations they have to follow. Or it could be the original creditor. Original creditor being like those big banks that you know, the Bank of Americas, the Citi Banks, et cetera. They also have their own processes and different phone lines to call in and speak to. So it really depends where on that stage of debt it is. We use the word charge off. Has debt been considered charged off because there's different procedures and different, I guess, offers that creditors will take at that time. So it changes depending upon what stage it's in.

Hannah (10:33):

Yeah. So there are obviously so many factors that will play into what kind of a settlement you can land on. In your experience, is it easier to work with creditors or debt collectors or debt buyers? What's it like for you?

Jonathan (10:49):

I can't really say that depending upon what category that you threw out, it changes. I would say that certain partners are better than others, and I call them creditors, but not all creditors are the same. Some people have different kinds of collateral behind it. Is it tied to a car, is it tied to a house? Everyone's different. So it's really hard to answer that question as a generalization.

Hannah (11:14):

Gotcha. Okay. Well, with that being said, I think it'd be good to take some time to jump into some questions that we have submitted here on the debt hotline. We're going to go ahead and kick off with a question from Gilmar in Florida. I have a debt in collections that I've been paying since 2002. The fees are so high from the beginning after paying thousands, I asked them to consider it paid off if I paid them $4,500, they said that they would. Paying this debt means a turnaround in my life. It will clean my record and I'll be able to change my life. I've made mistakes years ago and now I've fully recovered and I'm starting my bachelor's in social work this August. I graduate in 2027 and will continue to get my master's and final goal is to be a licensed clinical social worker and help those in need. But if I don't pay this long dragging debt, it will prevent me from doing my internship or getting hired at a good agency. Is there any advice that you can give me for turning my future around? I'm currently a college student, so what advice would you give me for trying to settle this debt if I don't have a job that I can really afford to pay it off? God bless you and thank you. Any thoughts on that?

Jonathan (12:27):

Wow. Yeah. So I'm not exactly sure who this creditor is or who's collecting at this moment, so I can't really say what I would exactly do, but in general, the first thing you want to do is make sure that the person you're speaking to is the owner of the debt that you have. Because you could be paying someone that's claiming to owe the debt and they could not owe them the debt at all, and it could be going to someone that's not applying against balances you owe. And so I would say the first step is make sure that you get some kind of proof to make sure that this is a debt that you owe. And so the usual way this happens is they will send you a letter saying that they owe the debt and you say, I need you to validate that you owe this debt, I owe this debt and that you are the owner of this debt and I can resolve this by talking to you.

The second thing is it seems like they had a conversation with the collector and it seems that that was kind of what they were holding their promise to. And I say that's just not useful if you were to end up at a later time having to prove that you had paid off the debt or you had paid off the obligation that you'd have agreed to. So you need to go and you need to get that in writing. You need to receive some settlement offer that will say what the effect of paying a certain dollar amount will be. Will it be fully settled? Will it be considered to be applied to the balance? Is the rest forgiven? Are you going to be receiving a notice later saying that you've got a tax obligation because you have settled this debt? You just really want to know what you've agreed to, how you're paying it and when you have to pay it by so that you know exactly how you can get out of debt.

And the other thing is I would argue that you should always try to push for the best deal possible, and if they don't own the debt, they have to go to the original owner of the debt and speak to them about what they are offering. So you can ask for something that is better than what they might've offered and say, please communicate this to your client and let me know if they can accept this because I am in a financial hardship. And most people that are in a financial hardship nowadays, they didn't go out and buy Louis Vuitton bags. Everyone's having a hard time, and I think a lot of the accreditors understand this and they're sympathetic to it.

Hannah (14:53):

And I agree with that statement. Most creditors and debt collectors are willing to work with you. They can be sympathetic, especially if you really are working hard to turn your life around and get back on track with your finances. So I think the key is to just communicate. Don't be afraid to communicate. If you're in the middle of a legal battle, you've got resources like Guardian Litigation Group. It's a good law firm that can help you get representation and fight the case if that's what you think is going to be best for your particular case. Or if you can't afford to hire an attorney, you can use Solo and respond to the lawsuit, block that default judgment and then buy yourself some time to negotiate and try to work out a settlement before your court date and try to avoid going to court altogether. Let's see. Next question is from Jessica in Indiana, it says, I just went to court three weeks ago and won the motion to vacate default judgment, but I've yet to hear from LVNV funding. They did mention after I received the paperwork and looked over it that if I want to settle to contact them, I just think it's strange that I've not gotten anything in the mail by now. LVNV has been notorious to have dates stamped on papers or postage, but not receiving anything for months. I'm concerned about that. What should I do?

Jonathan (16:16):

Okay, well congratulations. Number one. That's a lot and not a lot of people can do that. So great job. The next step, this is one of those questions where I have a hard time answering also because I just don't know this particulars right, but the next step in the case in general is that you have to respond to the lawsuit. Now that you've got the default vacated, you're no longer in a default judgment and you have to fight the suit through. So now is the time for you to either go and obtain counsel to try to fight the case or to find other resources like solosuit to help you out.

Hannah (16:55):

Yeah, and I think I would echo what you've said, Jonathan, congrats on winning the motion to vacate default judgment. So it sounds like what happened was maybe you were sued by LVNB funding, you didn't respond in time, so they won a default judgment and then you filed a motion to vacate that judgment, which basically just means that the court will throw out that judgment and give you another chance to respond to the lawsuit and try to defend yourself. So that in and of itself is already a huge win. It could be because it's just kind of making that legal process a little bit more difficult for LVNB funding and they might be in a position to work with you better to try to avoid more court time, more having to allocate more resources to this case. I think LVNV funding is willing to negotiate with you, but the key is to just communicate with them and you'll want to contact the opposing lawyer directly if that's what you're trying to do.

And if you're trying to settle it outside of court, you can also use tools. Like Jonathan said, you can go to solosuit.com. We have a tool called SoloSettle, and you can use that to negotiate with debt collectors like lbn B funding and try to settle outside of the court system and do the whole process digitally. So check us out on solosuit.com. Let's see. Next question. This one is from Edson in New York. It says, if I settle and alleged a debt from a debt collector, how can I request or negotiate a removal of the derogatory remark on my credit report?

Jonathan (18:31):

In general, if you are speaking to them and you have paid off the debt, they have to do something to report something. I have other attorneys at the firm here that can help you with that if you wanted to speak to us, but I personally am not the one to speak about that topic.

Hannah (18:50):

Okay. But it sounds like it is possible as part of your settlement maybe to get in the agreement that once the debt is paid, they'll remove any negative marks on your credit report. Would you agree with that, Jonathan? Generally,

Jonathan (19:03):

Yes. Guardian doesn't do credit repair to be clear, but there might be someone else that knows better. I personally don't know exactly how to respond to that question.

Hannah (19:13):

Yeah, I think in my experience, Edson, I would say, and again, I'm not an attorney, but just from what I've heard from lots of stories and speaking with thousands of people in similar situations, if you're trying to get something removed from your credit report, just make sure that it's in your settlement agreement, make sure that it gets documented, make sure everything gets documented, make sure you have paperwork to prove every conversation and every settlement agreement that you came to, and be sure to get that signed as well. If you've been sued, file it in the case to make sure the court has record of it and you don't have any legal issues that arise in the future. Next question is from Patricia in Minnesota. This one says, I'm being sued for a payday loan that was bought out by a collection company. The original debt was $1,700, now it's up to $2,500. The court date is in one month. Can I still settle out of court before my court date? Any thoughts on that, Jonathan?

Jonathan (20:14):

The answer is yes. You can always settle. So yeah, reach out and start talking. That's the best way to do it. At this point,

Hannah (20:22):

I want to ask you a little bit further, Jonathan, you said you can always settle. So even if someone's already been sued, they're pretty far into the legal process, you still think it's a possibility to negotiate.

Jonathan (20:33):

You can settle even after a judgment's been entered actually, really? So we've been in situations where our clients received the judgment against them and we've reached out and spoken to the creditor and we've been able to get a new settlement even after because again, they want to work with you. They do because it's easier for them to work with you than it is for them to go through the process of garnishment and all of that. And of course, you were their customer at some time, so they have to care about you somewhat.

Hannah (21:04):

Yeah, and I think that's really useful to know that you can still settle even after a judgment's been entered. What are some certain, I guess, situations that you think would make creditors more likely to accept a settlement once a judgment has already been entered in the case? What are some factors that might make them a little bit more lenient about that kind of stuff?

Jonathan (21:25):

Yeah, I think it depends upon, for example, certain states have exemptions and things that make it more difficult for them to collect on a consumer anyways. So in those states, I do believe that creditors are more inclined to settle even after a judgment. Your personal circumstances, again, that hardship. If you have a genuine hardship that's easy to prove and that is compelling, most creditors will take that into consideration. The other things that can happen is that you could receive funds in a way that makes it difficult for them to collect, and it could be also that in general, it's just more cost effective for them to settle that way. So that is another reason they can do it for us. They know that even though that they've won, there could be further action that we're going to do after the fact. So with us, they tend to want to talk to us and to work with us because we are attorneys and they know that it's not over at that point. So they do want to work with us afterwards. So it's kind of a generalization, but that's what's been in my experience.

Hannah (22:34):

That's so nice to know though that I think one people here, there's a judgment in their case, they think all hope is lost, but it's nice to know that there still is a process that creditors have to go through to collect that debt after a judgment. They have to contact your employer and try to get a wage garnishment in place, which is in and of itself kind of a lengthy and frustrating legal process. So if you can help them avoid that and offer to settle, it's really nice to know that they're still willing to work with you and open to discussing even after judgment. You so much for that insight, Jonathan. Chris Connors says, what if my civil number wasn't on the petition? How much does this matter?

Jonathan (23:17):

I don't know what a civil number is. Is it maybe a case number?

Hannah (23:21):

Yeah. What they need is a case number

Jonathan (23:24):

And petition I'm assuming is your petition that you're putting in. Usually court clerks will kick that back if you're not meticulous about that. So that could affect your case. It's easier to correct and you can usually do another filing, but I would try to make sure that that is correct on your petitions if you are the one that is putting a petition in.

Hannah (23:46):

What if the petition was from the lawyer and there's no case number on it, and is the consumer being sued?

Jonathan (23:53):

Sure. That would mean that you would have to go, if you're trying to respond, at least you would have to go and try to find that number. You could probably contact the lawyer directly and ask them what that number is. They'll tell you that they usually will, and if not, you can go to the courthouse or you can call the court clerk and try to get it from them. In some states, it's even available online.

Hannah (24:16):

I would add to that, that you can also use SoloSuit as a resource. We've got blog posts on our website that will help you navigate finding your case number in any state. All right. This one's from B. It says if I'm shopping debt consolidation versus debt settlement, which would you recommend? If I just want to be out of debt asap.

Jonathan (24:40):

Okay, well, if you want to just be out asap, I would say debt settlement is the way to go because you are settling for less than what you owe and you're not continuing to accrue interest when you're doing a debt consolidation, you will receive a new loan that's continuing to accrue interest. At least that's what I think you mean by debt consolidation. It could be different things, but when there's an interest rate and there is compounding interest, you can look at your balance sheet and it'll tell you on the balance, it'll tell you when they give it to you, how many years it'll take you to pay off if you just make the minimum payment, usually more than 20 years. So yeah, debt settlement, you'll be out between 12 to 60 months.

Hannah (25:29):

I kind of agree. I think that debt settlement in most cases can be the best case scenario because you're kind of settling things faster in most cases for debt settlement. You're also settling on the interest that's involved. So instead of having to pay off way more in the long run, you can settle now and save yourself a lot of money. So I agree. I agree with you, Jonathan. I think settlement is in a lot of cases the best case scenario. I would also say as a resource for anyone who's being sued, if you're looking for legal representation or legal help to settle your debt, you can check out Guardian Litigation Group and that website has resources as well to help you understand the process and what to expect. But again, if you're being sued, especially for higher debts, like $10,000 or more, it might be in your best interest to look into legal representation. You also have other options If you can't afford an attorney like Solo, we can help you represent yourself in court and settle your debt on your own. It's kind of like a DIY tool that digitizes the whole process. So check out these resources and just know that in many cases, debt settlement might your best bet. All right, so this one is from a Smith. It says, what should I expect at a motion for summary judgment hearing?

Jonathan (26:54):

Okay, I'm going to answer this as a law school professor that I am wise not anymore.

Hannah (27:00):

And if you could maybe also explain what is a motion for summary judgment along with what to expect at a hearing for that?

Jonathan (27:07):

Yeah, so a motion for summary judgment is a motion hearing, right? There's been a motion that's been put that says that the plaintiff is asking, or in this case the plaintiff I'm assuming, is asking for there to be a judgment that's entered based upon what's already known without a trial. So they're trying to expedite this process. I don't know what the reasoning behind the summary judgment is usually on their motion. It will tell you, you can read it and you'll know what the grounds are for that. But at the hearing, there will be a determination of whether or not there should be a judgment based upon solely those facts that are already known and within the motion that's been placed with the court or applied with the court. The standard for a motion for summary judgment is they have to prove there is no fact and controversy that has to be proved at court. So that is the basis that you have to prove that there is and that because of that, there still needs to be your day in court for you to find out the suit and that you have the right to that.

Hannah (28:12):

So you said that the motion for summary judgment is basically saying there's no need to prove certain facts in court. What exactly does that mean? From my understanding, it just means they're saying everything we've alleged in our original complaint is true and there's no need for us to go to court to fight it and prove it. Because you already have all the proof you need. Is that right?

Jonathan (28:34):

Yeah, that's generally right. So for certain circumstances, let's say in a litigation process, there will be discovery that's already done. And because you didn't respond to the discovery requests, so request for admissions and they have already been deemed admitted, you are now having admitted or maybe you responded with an admission unknowingly, right? And because of that, you've already admitted to enough of the elements that they have to prove for their cause of action that they don't need to go to courts to prove whether or not those particular elements are in their favor, right? So they don't have to meet that preponderance of an evidence standard anymore. So now they can take those facts and with those facts alone, they now deserve to receive a judgment in their favor.

Hannah (29:30):

Perfect. Well, thank you for that explanation. I think it was very law Professory so easy to understand for some of us who maybe aren't super legal experts, but thank you so much. Last question is from Jeff Safire. It says, I was sued by a law firm representing Discover. I filed the answer myself. The plaintiff offered a 40% reduction but hasn't responded with proof of amount. Do they have to respond before the court date, which is August 1st?

Jonathan (30:01):

I would say no. They don't have to prove the amount of what is 40%. I guess that amount doesn't have to be shown or proven, but they do have to tell you what it is, the amount that they are alleging that you do owe. So if they don't give you that number, that is more problematic.

Hannah (30:20):

What kind of proof do they have to show to prove that someone actually owes that amount?

Jonathan (30:26):

That's a larger question. I mean, there's so many things that they can use to prove. They can use accounts stated showing different balances that you spent, and they're not going to go through the one's task of going one by one on your statements going over which particular charge that you did or didn't spend on. But they'll have certain different proofs. But I think it's a larger question for me to answer than just a quick one. But if you're asking chain of title, they can prove that they owe the debt, own the debt. There's different forms that they can show you

Hannah (30:58):

Too. And for these debt collectors that maybe have purchased the debt, they do need to show proof of purchase and they need to show proof of of title in order to prove that debt is valid and owed. Right,

Jonathan (31:11):

Right.

Hannah (31:12):

Okay. But it sounds like in Jeff's situation, he's being sued by Discover the creditor itself. They probably will have all the proof that they need likely to show that you owe the debt. So that's really awesome that they're willing to settle for 60%. Sounds like they reduced it by 40%, so settling at 60% I think is a pretty good deal, wouldn't you say, Jonathan?

Jonathan (31:35):

Yeah, I think that's a good deal. Depending on the circumstance. I've seen it lower, but I've also seen it much higher, so not a bad deal. Yeah. Hope it works out for you.

Hannah (31:48):

Yes, as do I. Well, I think we'll go ahead and wrap things up before we end, I wanted to just say thanks so much to Jonathan Yang for explaining a little bit about the debt settlement process as a seasoned attorney and once law professor, we really appreciate you sharing your expertise and answering some of these questions. Any, I guess, final thoughts from you, Jonathan?

Jonathan (32:15):

That is not something to be embarrassed about. I think that in the United States, it's a natural thing that we all have to some extent. And when it gets out of control, it's more important that you address it and you deal with it than to just kind of put it in the corner and forget about it. We talked about debt settlement or debt resolution or negotiating your debt, breach of contract defense, all of that. It's same thing. It's to deal with it. And I have a very specific window for most clients when they come to me, it's right before they get to bankruptcy because you can still pay something and it's not where you can't pay anything because it's just gone out of control. So if you come to me earlier than when you should be in a bankruptcy, and if you are, then I'm going to send you there, then we can go and resolve this and it'll be a much easier process. And it's something that we can get under control and there's no reason for you to be skipping meals or skipping paying things or worrying about the lights to turn off. I don't want that for anyone. So there are ways to handle things. You're not alone. Give us a call if you need help, we're always here for you.

Hannah (33:26):

I love that. Do you know the best number to reach someone at Guardian Litigation Group?

Jonathan (33:31):

The number is 180-316-3133.

Hannah (33:36):

Well, I guess I'll just take a minute then to wrap up with a few final thoughts. Number one, I second everything that Jonathan said. You shouldn't be ashamed if you have debt. It's a very normal thing to have debt in the United States especially, and there are so many resources out there, so many people who are willing to help, whether you're in a legal battle or you are just receiving collections notices from the first time, there are so many ways to resolve your debts. So reach out, go to Guardian Litigation Group. If you're dealing with a big lawsuit or if you're trying to represent yourself, head on over to Solo suit.com. We can help you file and draft an answer to your lawsuit and then settle it outside of court. For anyone who has questions about debt and would like to get some answers or extra guidance, you can call in to the debt hotline at 8 0 1 6 1 3 8 1 8 1.

And then lastly, I just wanted to say we're kicking off a giveaway at Solo. It's called the In-Debt-Endence Day Giveaway. We're trying to help somebody end their debt and pay it off and get in a better financial position. So for anyone interested, you can go over to solosuit.com/giveaway and enter to win up to $4,700, which is the average amount that people get sued for at Solo. You can enter daily to increase your chances of winning, and we're going to be giving away a $4,700 cash prize to one person to help them pay off their debt. We'll also be announcing weekly winners every Friday for $500 mini prizes. So go on there and enter and increase your chances of winning by entering daily Solo's rooting for you. Thanks again, Jonathan, for your time.

Jonathan (35:21):

Thank you so much for having me. It's been a pleasure.

Hannah (35:23):

Thank you.

Disclaimer: The information presented in this podcast is intended strictly for general informational purposes and should not be construed as legal, financial, or investment advice. Solo and its hosts are not licensed attorneys, financial advisors, or other certified. While select guests may hold active professional licenses, their contributions are purely for educational thematic discussion. They're not delivering professional or personalized advice. Solo is not a law firm, does not offer legal representation and must not be relied upon as a substitute for professional legal counsel. It is also not engaged in debt, settlement, credit repair, or financial counseling services. Solo provides self-directed software tools designed to support users in navigating their own legal and financial situations. Participation in this podcast is not establish an attorney-client relationship. Listeners are encouraged to consult with attorneys or licensed professionals for guidance specific to their circumstances. The opinions expressed by podcast participants are their own and do not necessarily reflect the views or official positions of SoloSuit Inc. Doing business as Solo or any affiliated organizations.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont; Vermont (Small Claims court)
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

• 11 Charter Communications
• AAA Collections
• Aargon Agency Inc
• Absolute Resolutions Investments LLC
• ACEI Collections
• Account Services
• Accredited Collection Services
• Accredited Collection Services
• Advanced Recovery Systems
• AES NCT
• AFNI Collections
• Alco Capital Group LLC
• Aldous and Associates
• Alliance Collections
• Alliance One
• Alliant Capital Management
• Alpha Recovery Corp
• Alltran Financial
• Alltran Health
• Alorica Inc.
• Amcol Clmbia in Court
• American Coradius International
• American Profit Recovery
• American Recovery Service
• Americollect
• AmSher Collection Services
• Apelles LLC
• AR Resources
• ARC Collections
• ARM Solutions
• Arrow Financial Services
• ARS National Services
• ARSC Debt Collectors
• ARS National Services
• ARstrat
• AscensionPoint Recovery Services
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Atlantic Credit and Finance
• Atradius Collections
• Automated Collection Services, Inc.
• Autovest LLC
• Avante USA
• Avantus
• AWA Collections
• Balekian Hayes
• Bay Area Receivables
• BCA Financial Services
• BC Services
• Benuck and Rainey
• Berlin-Wheeler
• Bluebonnet Financial LLC
• Bonneville Collections
• Bull City Financial
• Bureaus Investment Group
• Cach LLC
• Caine and Weiner
• Capio Partners
• Capital Accounts
• Capital Collections
• Capital Management Services
• CardWorks
• Carmel Financial/New Coast Direct
• Cavalry SPV I LLC
• CBCInnovis
• CBCS Collections
• CBE Group
• CBV Collections
• CCB Credit Services
• CCS Collections
• CCS Offices
• Central Mediation Services
• Central Portfolio Control
• Cerastes LLC
• Choice Recovery
• Choice Recovery Inc
• CKS Financial
• CKMS Financial
• Client Services
• CMRE Financial Services
• COAF
• Coast Professional
• Comenity Bank Debt Collection
• Commonwealth Financial
• ConServe Debt Collection
• Consumer Collection Management
• Contract Callers Inc
• Convergent Healthcare Recoveries
• Convergent Outsourcing
• Couch Conville & Blitt
• Covington Credit
• CRDT First
• Credco in Court
• Credence Resource Management
• Credit Bureau Systems
• Credit Control Corporation
• Credit Management Company
• Credit Management LP
• Credit Systems
• Credit Systems
• CSIEZPay
• CTC Debt Collector
• CVCS Debt Collection
• Cypress Financial Recoveries
• D&A Services
• Daniels, Norelli, Cecere & Tavel P.C.
• DCM Services
• Debt Recovery Solutions
• Delanor Kemper & Associates
• Department Stores National Bank
• Direct Recovery Associates
• Discover Collections
• Diversified Adjustment
• Diversified Consultants
• Diversified Recovery Bureau
• DNF Associates, LLC
• Dodeka LLC
• DRS Credit
• Dynamic Collectors
• Eagle Loan
• Eagle Accounts Group, Inc.
• Eastern Account System
• EduCap
• Ellington and Associates Collections
• Encore Capital Group
• Enerson Law
• Enerson Law LLC
• Enhanced Recovery Company
• EOS CCA
• ERC Collections
• ERSolutions
• Estate Information Services
• Equable Ascent Financial
• Everest Business Funding
• Executive Credit Management
• Faber and Brand
• Factual Data
• Falls Collection Service
• FBCS
• FCO Collections and Outsourcing
• FIA Card Services
• fin rec svc (Financial Recovery Services)
• First Federal Credit Credit Control
• First Financial Bank
• First Portfolio Ventures LLC
• First Progress
• FirstPoint Collection Resources
• Firstsource Advantage
• FMA Alliance
• FNB Omaha
• Forster & Garbus
• Franklin Collection Services
• Freedom Plus
• Freshview Solutions
• Frontline Asset
• Frost Arnett
• Fulton Friedman & Gullace LLP
• Galaxy International Purchasing, LLC
• GC Debt Collection
• GC Services
• General Revenue Corporation
• GLA Collections
• Glass Mountain Capital
• Glasser and Glasser
• Global Credit Collection Corp
• Global Trust Management
• GMAC Financing
• Golden 1 Credit Union
• Grant and Weber
• Grant Mercantile Agency
• Gulf Coast Collection Bureau
• Gurstel
• Halsted Financial Services
• Harris and Harris
• Harvard Collection
• Harvest Credit Management
• Helvey and Associates
• Hollis Cobb
• Holloway Moxley
• Hosto Buchan
• Howard Lee Schiff
• H&R Accounts
• HRRG
• Hudson & Keyse LLC?
• Hunter Warfield
• IC System
• Impact Receivables Management
• Innovative Recovery
• Integras Capital Recovery LLC
• Javitch Block
• JHPDE Finance 1 LLC
• JP Receivables Management Partners
• JPMCB card
• Kenneth Eisen and Associates
• KeyBank student loans
• Kinum
• Kirschenbaum, Phillips & Levy P.C.
• KLS Financial Services
• Kramer & Frank
• Lakeside Collection
• Lending Club
• Lincoln and Morgan Kabbage
• Linebarger Goggan Blair & Sampson LLP
• Lockhart Collection Agency
• LJ Ross Associates
• LTD Collections
• Malcolm S. Gerald and Associates
• Malen & Associates
• Mandarich Law Group
• Mannbracken
• Marcam Associates
• MARS Inc. Collections
• MBA Law
• MCA Management Company
• McCarthy, Burgess & Wolff
• Meade & Associates
• Medicredit
• Mercantile Adjustment Bureau
• Merchants Credit Association
• MGM Collections
• Michael J Adams PC
• Midland Funding LLC
• Mid-South Adjustment
• Monarch Recovery
• Monterey Financial
• Moss Law Firm
• Mountain Land Collections
• MRS Associates
• MRS BPO
• MSW Capital LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Nathan and Nathan PC
• National Collegiate Trust
• National Credit Adjusters
• National Credit Care
• National Credit Systems
• National Enterprise Systems
• National Recovery Agency
• National Recovery Solutions
• Nationstar
• Nationwide Credit
• Nationwide Recovery Services
• Nationwide Recovery Systems
• NCEP LLC
• NCO Financial Systems Incorporated
• North American Recovery
• Northland Group
• Northstar Capital Acquisition
• Northstar Location Services
• NPAS
• NRC Collection Agency
• Oliver Adjustment Company
• Oliphant Financial, LLC
• Oportun
• P&B Capital Group
• PCB Collections Agency
• Palisades Collection LLC
• Pallida LLC
• Paragon Contracting Services
• Paragon Revenue Group
• Payday Loan Debt Collectors
• Pendrick Capital Partners
• Penn Credit
• Perdue Brandon
• Persolve LLC
• Phillips & Cohen Associates
• Phoenix Financial Services
• Pioneer Credit Recovery
• PMAB LLC
• PRA Group, Inc.
• Pressler, Felt & Warshaw LLP
• Prestige Services, Inc.
• Prince Parker and Associates
• ProCollect
• Professional Finance Company
• Progressive Management Systems
• Provest Law
• PYOD LLC
• Quaternary Collection Agency
• RAB Collection Agency
• Rash Curtis and Associates
• Radius Global SOL
• Radius Global Solutions
• Rawlings Company
• Razor Capital
• Real Time Resolutions
• Receivables Performance Management
• Regents and Associates
• Reliant Capital Solutions
• RentGrow
• Resurgent
• Resurgent Capital Services and LVNV Funding
• Revco Solutions
• Revenue Enterprises LLC
• Revenue Group
• RGS Financial, Inc.
• RMP LLC in Court
• RMP Services
• RS Clark and Associates
• RSIEH
• RSIEH
• RTR Financial Services
• Rubin & Rothman
• Salander Enterprises LLC
• Samara Portfolio Management
• SCA Collections
• Scott Parnell and Associates
• Second Round Collections
• Second Round Sub LLC
• Selip & Stylianou LLP
• Sequium Asset Solutions
• Sessoms and Rogers
• Sherman Acquisition
• Sherman Financial Group
• SIMM Associates
• Source Receivables Management
• Southern Management Systems
• Southwest Credit Group
• Spire Recovery Solutions
• SRS Company
• Stark Collection Agency
• State Collection Service
• Stenger and Stenger
• Stillman Law Office
• Summit Account Resolution
• Sunrise Credit Services
• Superlative RM Debt Collector
• Suttell and Hammer
• Synergetic Communication
• Synerprise Consulting
• The Law Office of Michael J Scott
• Trellis Company
• Troy Capital
• TRS Recovery Services
• TrueAccord
• Tulsa Teachers Credit Union
• UCB Collection
• UHG 1, LLC
• Unifin
• Unifin Debt Collector
• Unifund
• Universal Credit Services
• US Bank Collections
• USAA collections
• USCB America
• Valentine and Kebartas
• Valley Servicing
• Vance & Huffman LLC
• Van Ru Credit Corporation
• Velo Law Office
• Velocity Investments
• Viking Client Services
• Wakefield and Associates
• Waypoint Resource Group
• WCTCB
• Weinberg and Associates
• Weltman, Weinberg & Reis
• Westwood Funding
• Williams and Fudge
• Wilshire Consumer Credit
• Wolpoff & Abramson
• Worldwide Asset Purchasing
• www.AutomotiveCredit.com
• Zarzaur & Schwartz
• Zwicker & Associates

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

• American Express; American Express – Debt Collection
• Bank of America
• Barclay
• Best Buy Credit Card
• Capital One
• Chase
• Credit One Bank
• Old Navy Credit Card
• PayPal Synchrony Card
• Regional Finance
• Retailers National Bank
• Reunion Student Loan Finance Corporation
• SYNCB/PPEXTR
• Synchrony Bank
• Synchrony Walmart Card
• Target National Bank
• Webbank
• Wells Fargo
• Can I Pay My Original Creditor Instead of a Debt Collection Agency?
• Can I Settle a Debt with the Original Creditor?

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

• Am I Responsible for My Spouse's Medical Debt?
• Do I Need a Lawyer for Medical Bills?
• Do I Need a Lawyer to Fight Medical Bill Debt?
• Does Bankruptcy Clear Medical Debt?
• How Much Do Collection Agencies Pay for Medical Debt?
• How to Find Medical Debt Forgiveness Programs
• Is There a Statute of Limitations on Medical Bills?
• Medical Debt Statute of Limitations by State
• Summoned to Court for Medical Bills — What Do I Do?
• Summoned to Court for Medical Bills? What to Do Next

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

• How Arbitration Works
• How to Find an Arbitration Clause in Your Credit Agreement
• How to Make a Motion to Compel Arbitration
• How to Make a Motion to Compel Arbitration in Florida
• How to Make a Motion to Compel Arbitration Without an Attorney
• How Credit Card Arbitration Works
• Motion to Compel Arbitration in California
• Sample Motion to Compel Arbitration

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

• 1-800-390-7584
• 800-289-8004
• 800-955-6600
• 8009556600
• 877-366-0169
• 877-591-0747
• 800-278-2420
• 800-604-0064
• 800-846-6406
• 877-317-0948
• 888-899-4332
• 888-912-7925
• 202-367-9070
• 502-267-7522

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

• 15 USC 1692 Explained
• Does the Fair Credit Reporting Act Work in Florida?
• FDCPA Violations List
• How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
• How to Make a Fair Debt Collection Practices Act Demand Letter
• How to Submit a Transunion Dispute
• How to Submit an Equifax Dispute
• How to Submit an Experian Dispute
• What Debt Collectors Cannot Do — FDCPA Explained
• What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
• What does “meets FCRA requirements” mean?
• What does FCRA stand for?
• What is the Consumer Credit Protection Act