Start My Answer

How to Settle a Debt in Alaska

Sarah Edwards | December 06, 2022

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

When you settle your debt ^^

Summary: If you’re trying to settle your debts and get a clean financial slate in Alaska, SoloSuit can help. We’ve put together everything you need to know about how to settle a debt, even if you’re facing a lawsuit from your creditor or debt collector.

Knowing that you owe money to a debt collector or creditor can be immensely frustrating, especially if you cannot fully repay the debt. You may struggle to make payments for months or years only to see little difference in the outstanding balance.

Fortunately, you can settle your debt if you are struggling to make ends meet. Many creditors and debt collectors are willing to settle for a portion of the original debt amount, especially if you explain your financial circumstances and obstacles.

In fact, the average consumer is able to reach a debt settlement at 50% of the debt when working with a debt settlement company. While it isn’t always easy to reach this great of a settlement, there is still a great chance you can settle and save.

In this article, we’ll walk through how to settle a debt in Alaska and how to respond to a debt lawsuit there.

Follow these 3 steps to settle your debt in Alaska

If you’re facing a debt collection lawsuit in Alaska, there are three steps you’ll need to take to avoid court and settle your debt:

  1. Respond to your debt lawsuit with an Answer.
  2. Make an offer to state the debt settlement negotiations.
  3. Get your debt settlement agreement in writing.

Below, we take a closer look at each of these steps. Alternatively, check out this video to learn more:

1. Respond to your debt lawsuit with an Answer

If you’re being sued for debt, you’ll receive a Summons and a Complaint. These are court documents that initiate a debt lawsuit. The Summons notifies you of the case, while the Complaint explains the reasons behind the suit: the amount you supposedly owe, who owns the debt, and any interest or fees associated with your case. You should review the Complaint carefully and draft an Answer to it.

An Answer responds directly to the Complaint. You’ll include any reasons you have for failing to repay the debt. If you have specific concerns, like the amount of the debt being incorrect, you should include them.

Even though you intend to settle the matter before your court date, an Answer will protect you from a default judgment in case your efforts fail. The judge will review the Answer and listen to your argument when you appear in court.

Learn more about how to respond to a debt collection lawsuit in Alaska here.

Respond with SoloSuit

Get Started

2. Make an offer to start the debt settlement negotiations

Your next step is to figure out what you can afford to pay in order to settle.

Check your savings and determine how much money you can come up with before your court date. If you don’t have much money to give in a settlement, see if family or friends can help.

You should also investigate past settlements that your creditor or debt collector has reached with other consumers. This will give you an idea of the percentage that they are most likely willing to accept.

Ideally, you’ll want to start your offer for debt settlement with at least 60% of the total value of the debt. For example, if you owe $3,000, you’d offer $1,800. If you can’t afford 60%, start negotiations with what you have available and explain any factors that are dragging you down financially.

Your creditor will consider your offer and decide whether to accept or provide a counteroffer. If the counteroffer is more than you can afford, let them know. You may be able to come up with a creative solution, like stretching your payments out over several months.

Be prepared to negotiate with the debt collector, but don’t accept an offer you know you won’t be able to pay. If you fail to adhere to the terms, the collector will use your lack of compliance as further evidence of your unwillingness to repay the debt, and the judge will likely grant the judgment against you.

SoloSettle takes care of the debt settlement negotiation process for you.

3. Get your debt settlement agreement in writing

Don’t repay the debt collector until you have a debt settlement agreement in writing.

Some debt collectors restart collection activity even after receiving a settlement. A written agreement gives you something to refer to if the collector comes after you again.

Check out this debt settlement agreement example to learn more about what to potentially include in yours.

You’ll notice that the sample agreement requires you and the opposing party to sign in the presence of a notary. Getting the agreement notarized adds additional credibility to the contract and protects you from further legal activity as long as you abide by its terms.

Now, let’s look at an example.

Example: Jane was sued by LVNV Funding for an old credit card debt of $2,000. She knew she could afford to pay off $1,500 in a lump-sum payment, but she wasn’t sure how to go about it. After responding to the lawsuit with SoloSuit’s Answer form, Jane used SoloSettle to send an offer of $1,000 to LVNV Funding. After a few rounds of negotiations, they reached a settlement agreement at $1,500 (only 75% of the original debt amount).


SoloSettle manages your debt settlement agreement for you.

What are Alaska’s debt collection and debt settlement laws?

The Federal Trade Commission has recently amended the Telemarketing Sales Rule to expand debt settlement regulations to all debt relief organizations and companies. All 50 states, including Alaska, are governed by this Rule as it relates to debt settlement practice.

Under the new Rule, any company that provides debt relief services, namely debt settlement companies, cannot:

  • Charge upfront fees. Debt settlement companies cannot collect any fees from a consumer before the debt has been effectively settled or otherwise resolved.
  • Fail to disclose certain information about its services before a consumer enrolls in the program. This includes how much the service costs, how long it takes to see results, how much money must be saved before a settlement offer is made, consequences that may occur if the consumer fails to make payments on time, customer’s rights, and other important terms.
  • Misrepresent their services. No false or unsubstantiated claims can be made regarding a debt settlement company’s services.

Alaska also recognizes the Fair Debt Collection Practices Act (FDCPA), the federal regulation that governs the collection of debts. Under the FDCPA, debt collectors must follow specific rules. For example, debt collectors are not allowed to:

  • Call consumers before 8 a.m. or after 9 p.m.
  • Harass consumers by calling them repeatedly or allowing the phone to ring off the hook.
  • Continue to contact consumers after receiving a written request to stop.
  • Use threatening or profane language to convince consumers to repay the debt.
  • Misrepresent who they are when trying to collect a debt.

Alaska has additional laws that protect consumers from debt collectors. The Alaska Unfair Trade Practices and Consumer Protection Act AS 45.50.471 - AS 45.50.561 provides additional restrictions. In particular, debt collectors cannot:

  • State that failure to repay the debt will result in a criminal charge or jail time.
  • Threaten to garnish your wages without a valid judgment to do so.
  • Say that their letters are legal court documents when they’re not.
  • Tell you that they’ve taken legal action against you when they haven’t.
  • Apply a payment for a debt to a disputed account.

Under Alaska law §09.10.053, all medical debt, credit card debt, auto loans, and mortgages have a three-year statute of limitations. If your debt passes the statute of limitations, your creditor cannot pursue legal action to recover the money.

However, they can continue to report your account to the credit reporting bureaus, and they may continue to call you or send you collections notices.

What’s the best debt settlement company?

You be the judge of that.

Many people prefer SoloSettle over traditional debt settlement companies. Here’s why:

  • SoloSettle accepts customers with debts of any size. Most debt settlement companies require a debt of at least $15K or more.
  • SoloSettle takes an active approach to help you settle your debt. Whereas many debt settlement companies wait for the creditor or collector to send a settlement offer, SoloSettle proactively starts the negotiations for you.
  • SoloSettle can help you settle your debt and simultaneously defend yourself in a legal dispute with SoloSuit’s services. Most debt settlement companies don’t provide legal defense; if you’re sued for a debt you are on your own.
  • SoloSettle is offered by SoloSuit, a trusted brand and a legitimate company. Many traditional debt settlement companies are actual scams.

There are lots of debt settlement companies that can help you negotiate a settlement with your creditors. However, beware that some are scammers trying to steal your money. Here are a few reliable debt settlement companies for you to consider:

What are the best ways to start the negotiation process with a debt collector?

If you’re ready to start negotiating a debt settlement with your creditor, you can begin the process via email, mail, or a phone call. We recommend email since it’s quick and ensures you have a written negotiation record. Mail is slow, so you should avoid it if you’re trying to negotiate a settlement before your court date.

You can also consider handling the negotiation process over the phone. However, if you do so, we recommend that you record the call so that the debt collector can’t arbitrarily change the terms of the agreement or say there was never a settlement.

Alaska Stat § 42.20.310 allows people in Alaska to record conversations as long as one party (in this case, you) consents to the recording. This means that you do not have to ask the debt collector or creditor for permission to record a phone call. Only you need to consent.

FAQs about debt settlement in Alaska

People typically have lots of questions about the debt settlement process. Here are a few that we often hear.

Q. What percent should I offer to settle a debt?

We advise that you start with an offer of at least 60% of the debt’s value. However, if you don’t have that amount available, you can offer what you can afford to pay. Be aware that your debt collector will likely present you with a counteroffer.

Q. Is it better to settle a debt or pay it off?

It’s better to pay off a debt in its entirety. Paying off your debt looks better on your credit report, even if you didn’t repay according to your payment schedule. However, if you can’t afford to pay off a debt, a settlement can stave off a potential debt lawsuit and wipe your account clean.

Q. How much should I offer to settle an old debt?

If your debt is very old, the creditor knows they’re unlikely to recover all of it. You may be able to offer as little as 30% of the debt to clear up your account in a settlement. Even though the debt may be past the statute of limitations, settling it will stop future collection calls and letters.

How to get debt relief in Alaska

We have several other guides concerning debt relief in Alaska. Check out the following for more information:

Settling a debt in Alaska is possible with SoloSettle

While you may think that settling a debt before a lawsuit is a fool’s errand, it’s not. If you use the tactics in this guide, you can settle your debt in Alaska before your court date for less than what you owe.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

>>Read the MSN story about how SoloSuit can help you settle your debt

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.



Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.


We have answers

Join our community of over 40,000 people.


You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.


Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.


Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.


Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started