Sarah Edwards | December 28, 2022
Summary: Bank of America is known to play fair when discussing debt settlement options. If you have fallen behind on your payments with Bank of America, there is a chance you’ll be sued for the debt you owe. You can settle a Bank of America debt lawsuit by responding to the case, sending a settlement offer, and getting the agreement in writing. SoloSettle is designed to take care of the debt settlment process for you fast and efficiently.
Owing unpaid money to any lender is never ideal, but it can be even more challenging if you cannot stick to your regular payments with the creditor. If you owe money to a creditor such as Bank of America, you’ll need to make some decisions. You can attempt to negotiate a repayment agreement, consolidate your debt, or settle it.
Bank of America itself is known for its wide variety of financial services. Individuals can handle their checking and savings accounts with the company, take out a credit card or personal loan, or use their mortgage loans to purchase a home. The organization is the second largest banking association in America, following JPMorgan Chase, and has international branches in 40 countries worldwide.
You have a few options if you’re facing an overdue debt with Bank of America.
If you have a few outstanding loans you’d like to pay off, you can consider debt consolidation. Debt consolidation involves taking out a loan from a unique lender with the sole intent of paying off your credit cards or other debts. Instead of making monthly payments to various creditors, you’ll make a lump-sum monthly payment to your debt consolidation lender.
You'll need a decent credit score to qualify for a debt consolidation loan with low-interest rates. Individuals with poor credit scores may still be able to get a debt consolidation loan, but the savings may not be very significant, and interest rates will definitely be higher.
If you don’t meet the requirements for a debt consolidation loan, you’ll need to consider other options.
It is possible to set up alternative payment arrangements with Bank of America. You’ll need to contact their offices to explain your financial situation, and if they agree to modify the terms of your loan agreement, you may be able to make lower repayments on the debt or reduce your interest rate.
Repaying what you owe is the best way to reduce your debt with Bank of America without damaging your credit. Take a look at your monthly budget, determine whether you can make any short-term cuts, and apply the extra money to pay off your debt.
If your schedule allows, you can take on a part-time job or start a side hustle to build up your savings and put more toward your monthly Bank of America bill. Within a few months or years, you may be able to pay off the entire balance and build up your credit score.
If paying your entire debt with Bank of America just isn’t feasible, you may be able to work out a settlement arrangement with the company. In a settlement, you agree to pay your creditor a certain amount of the outstanding balance via a one-time lump sum payment or a handful of installments spaced apart over several months. Bank of America is more likely to agree to a settlement if they see you aren’t making payments on time. You're most likely to reach a good settlement after about 5 months of non-payment, because at this stage, Bank of America is close to charging off the account and considering it a loss. So, if you reach out around this time, chances are BofA will be glad to accept whatever you can afford to pay.
Bank of America’s willingness to negotiate a settlement depend on how collectible you are as a consumer. If they think they would earn more money by taking you to court or continuing collection efforts, you are considered more collectible. Here are some factors that make a consumer collectible in Bank of America’s eyes:
Bank of America knows that taking your case to court would be an expensive endeavor, especially if none of the points above apply to you. Even if they win a default judgment against you, they may not be able to obtain payment if you don’t have regular earnings or savings.
Therefore, if you have the savings to fall back on, a settlement can prevent your account from ballooning into a lawsuit and allow you to save some money.
If you’ve been sued by Bank of America, you can fight back, win, and settle the debt at any stage of the lawsuit. Keep in mind that FIA Card Services, one of Bank of America’s main debt collectors, may be the entity listed on the lawsuit. Eithwe way, settling your Bank of America account before your court date is possible, but you’ll want to follow some specific steps to do so, as listed below.
Alternatively, check out this video to learn how to settle a debt with Bank of America:
First, read the entire Complaint that Bank of America has filed against you. Note the amount of money they’re asking for, and compare the facts with your records. If there are any discrepancies, you can include them in your response to the lawsuit.
You’ll want to file an Answer to Bank of America’s Complaint, even if you intend to settle the matter before your court date. Your Answer should respond directly to each item in the Complaint, and an Answer prevents the court from granting Bank of America a default judgment against you if you’re unable to arrive at a settlement.
You can draft and file an Answer in all 50 states with SoloSuit’s help.
Next, contact Bank of America to offer them a settlement.
Calculate how much you can afford to pay off, and do some research to learn how much Bank of America might accept. Some debt settlement services claim that Bank of America is likely to settle for 30-40% of the debt amount. For your first offer, you should consider a fair amount—60% of the total value of the lawsuit might be a good place to start.
Reach out to the opposing attorney, whose name should be listed on the court documents. You can call, send a letter, or even email. To make an initial offer, you can use the following wording:
“I see you’re suing me for [$500] for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have [$250] that I can pay within 30 days to settle the debt in full. Let me know if you accept.”
The staff at Bank of America will review your offer and determine whether they accept or respond with a counteroffer of their own. It’s not uncommon to go through several rounds of negotiation before reaching an agreement.
SoloSettle negotiates a settlement for you.
Once Bank of America agrees to a settlement, get the details of the agreement in writing. You’ll want to ensure you abide by the settlement terms, including making your payment on time. Ask Bank of America to report your account to all credit reporting bureaus as settled or paid in full, if they are willing.
SoloSettle manages your debt settlement agreement so you don’t have to.
Now, let's consider an exampe of how to settle a debt with Bank of America.
Example: Joe owes Bank of America a debt of $10,000. After several months of missed payments, the account is sent to collections and Joe gets sued. He uses SoloSuit to respond to the lawsuit, giving himself time to look at his finances and work out a settlement agreement. He uses SoloSettle to send a settlement offer at 30% of the debt, or $3,000. The debt collectors working on behalf of Bank of America send a counteroffer, and after a few rounds of negotiations, they reach a settlement of 60% of the debt, or $6,000. According to the debt settlement agreement, Joe must pay off the debt within 90 days. SoloSettle helps him make the payment to the debt collectors while keeping his financial information private.
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 with SoloSettle.
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.)
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
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.
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
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?
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 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?
How Many Times Can a Judgment be Renewed in Oklahoma?
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?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
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
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
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
Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
"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