Start My Answer

How to Settle a Debt in Connecticut

Sarah Edwards | March 09, 2023

When you reach a debt settlement agreement in Connecticut ^^

Summary: If you’re facing a debt lawsuit in Connecticut, you’ll want to settle the claim and avoid a court judgment. In order to settle your debt in Connecticut, you should respond to the lawsuit within the 30-day deadline, send a settlement offer to open up negotiations, and get the settlement agreement in writing. SoloSettle can help you with all these steps and more.

Debt is a part of life that can be difficult to overcome. Whether you have credit cards, student loans, or medical bills, there may be times when you can’t keep up with your payments.

When you stop paying a creditor, they will start calling you and sending you letters, encouraging you to get back on track with your payments. They may charge off your account and sell it to a debt collector if you don't. Sometimes, they’ll take legal action against you.

If your creditor decides to sue you for an unpaid bill, you’ll want to resolve the matter quickly. If you don’t, and the claim goes to court, the judge may award your creditor a judgment against you.

A judgment will allow your creditor to take further action, like garnishing your wages. In some cases, they may be able to freeze your bank account or seize your property.

In order to avoid a judgment, you can settle the debt before your court date. Keep reading to learn more about how to settle a debt in Connecticut, including state-specific laws and procedures.

There are 3 primary steps to settling a debt

If you’re being sued for debt in Connecticut, you can still settle the debt when you follow these three steps:

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

Below, we will explore each of these steps in detail. Don’t like reading? Check out this video instead:

1. Respond to the debt lawsuit with an Answer

Your creditor will begin by filing a Complaint with your local court. A Complaint lists the reasons for the lawsuit, such as your nonpayment of a debt. It will document the total amount you owe, including interest and penalties.

You’ll want to respond to the creditor’s Complaint with an Answer. An Answer is a formal, legal response you use to defend yourself against your creditor’s claims. Even though you hope to avoid going to court by settling the lawsuit, an Answer lets your creditor know they won’t be able to steamroll over you.

There are various defenses you might use. Two of the most common are insufficient debt validation and lack of relationship with the creditor or collection agency. If neither of those defenses fit, another one might align better with your case.

If you want help preparing your Answer, watch our video on the process below:

6 Tips for Drafting the Answer in a Debt Collection Lawsuit - YouTube

2. Make a settlement offer to open up negotiations

Next, you’ll want to determine how much you can afford to offer your creditor in a debt settlement. We recommend offering at least 60% of your debt’s value. That amount is enough for your creditor to evaluate whether accepting a lump-sum payment is better than the resources they will spend for further collection activities.

If you don’t have enough cash to offer 60% in a settlement, consider selling a few things you don’t need or taking on an odd job. You could also ask family and friends for help.

You might go through a few negotiation rounds with your creditor before reaching an agreement. Explain your financial situation if your creditor isn’t willing to budge from their demands. Some creditors will come up with alternative arrangements if they know you’re having a difficult financial time.

SoloSettle takes care of the negotiation process for you.

3. Get the settlement agreement in writing

Once you agree with your debt collector, get it in writing. That way, you and your creditor fully understand the terms of the deal, and there’s no disconnect.

Your written agreement should indicate how much you will pay, when you’ll make the payment, and where you’ll send it. It should also include language that stipulates your creditor gives up collection rights to the remaining obligation. They’ll write off the debt and drop the lawsuit against you once you make the payment.

We recommend that you include a place for a notary to sign as a witness for both parties. Notarization will help protect you if your creditor tries to back out of the deal.

You can prepare your agreement ahead of the negotiation process. That way, you’ll only need to insert the applicable terms before sending the contract for your creditor to sign.

Explore this debt settlement agreement example to get an idea of what to look for in yours.

Now that you understand the debt settlement process, let’s walk through an example of how to settle a debt in Connecticut.

Example: Bob is behind on his bills. He’s stopped paying off his Discover card, and after several months, Discover decides to pursue a lawsuit against Bob. When Bob receives the Summons and Complaint in the mail, he uses SoloSuit to respond with an Answer before the 30-day Connecticut deadline. This gives Bob time to make a settlement plan. Next, he uses SoloSettle to send a settlement offer to Discover. Since he owes $1,000, Bob sends an initial offer of $500. Discover considers Bob’s offer and decides to counter with $700. After a few rounds of negotiations, they reach a settlement at $600. After preparing and signing a settlement agreement, SoloSettle transfers Bob’s money to Discover, keeping his financial information private and secure. Discover drops the case against Bob, and he is finally off the hook.


What are the debt collection and debt settlement laws in Connecticut?

Connecticut adheres to the federal guidelines concerning debt collection, known as the Fair Debt Collection Practices Act (FDCPA). This act forbids debt collectors from taking the following actions:

  • Calling consumers before 8 a.m. or after 9 p.m.
  • Contacting the consumer at work when they ask the creditor not to.
  • Publishing the consumer’s debt in any manner, including in the newspaper or social media.
  • Pretending to be someone they’re not when contacting a debtor.
  • Using legal templates designed to look like process documents when mailing a consumer.

In addition to the FDCPA, Connecticut has a statute of limitations that caps the time a collector has to sue the consumer for a debt.

Under CT Gen Stat § 52-576 (2018), collectors can pursue a consumer for a written contract debt for up to six years. Oral contracts have a statute of limitations of three years under CT Gen Stat § 52-581 (2014).

Finally, 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 Connecticut, 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.

What’s the best debt settlement company?

Finding the best Connecticut debt settlement company is about identifying which company best meets your particular needs for debt settlement. SoloSettle differs from many traditional debt settlement companies. Below, let’s explore what makes SoloSettle unique.

  • SoloSettle is a product of SoloSuit, a trusted brand with years of experience helping consumers manage debt. Sophisticated scams that prey on those overwhelmed with debt problems are a real concern. With SoloSuit’s SoloSettle tool, you know you are working with a valid company that has helped thousands of consumers.
  • SoloSettle works with debts of any size. Other debt settlement companies require a substantial minimum debt before taking you on as a client.
  • The SoloSettle tool is an active attempt to settle a debt, making it ideal to use if a lawsuit has been filed. The settlement tool is equally helpful to avoid a debt proceeding to a lawsuit.

Settle with SoloSettle

Make an Offer

Other reputable debt settlement companies include:

  • New Era Debt Solutions—New Era has been in business for over 23 years, making them a trusted name in debt settlement. They have an A+ rating from the Better Business Bureau (BBB).
  • Century Support Services—Century has over a decade of experience in helping consumers settle debts and maintains an A+ rating from the BBB. The business has consistently high customer satisfaction scores, but the fees can be steep. Make sure you understand the fee structure before making a final decision.
  • National Debt Relief—another company with an excellent BBB rating and consistently ranks well for consumer satisfaction. You need at least $7,500 in outstanding debt.

What’s the best way to contact my creditor?

If you’re ready to start your debt settlement journey, you can contact your creditor via email, letter, or phone.

We recommend emailing your creditor since it allows you to keep a written record. It’s quick, but you’ll be able to consider your responses before replying to the creditor rather than being put on the spot.

Some people prefer communicating directly with their creditors. A phone call can allow you to settle quickly, usually within an hour. However, if you call the creditor, you should record the conversation.

Under CT Gen Stat § 53a-187, both parties must consent to a recording. You’ll need to ask your creditor for permission before beginning the recording.

FAQs about how to settle debts in Connecticut

Most people have many questions about debt settlement, especially if they’ve never tried it before. Here are a few of the most common inquiries we hear in Connecticut:

Q. What percentage of debt should I offer to settle?

You’ll want to offer at least 60% of the total value of your debt in a settlement. That’s enough money for your creditor to take your offer seriously. However, offer what you can if you can’t afford that much. Sometimes, debt collectors will provide other arrangements if they understand your financial situation.

Q. How long will it be before a debt becomes uncollectible in Connecticut?

Written debts have a statute of limitations of six years in Connecticut, while the statute of limitations is three years for oral debts. Once a debt passes the statute of limitations, creditors can no longer take legal action against you. However, they can still report your account to credit agencies. They can also call you and send you collection letters.

Q. Can I do my own debt settlement?

Yes, it is possible to do your own debt settlement. Study up on the process to learn how it works. After you contact your creditor and arrange a deal, make sure to get it in writing before transferring your payment.

How to get debt relief in Connecticut

SoloSuit has several other guides concerning debt settlement and collections in Connecticut. Here are a few:

How to Get Debt Relief in Connecticut | SoloSuit Blog

Statute of Limitations on Debt in Connecticut | SoloSuit Blog

How to Answer a Summons for Debt Collection in Connecticut (2020 Guide) | SoloSuit Blog

Connecticut Case Lookup — Find Your Court Case | SoloSuit Blog

Debt settlement can help you get out of a challenging financial situation

If you’re facing a debt lawsuit, debt settlement can help you resolve the situation while avoiding a judgment. Before you start the negotiation process, determine what you can afford to pay. Make sure to file an Answer to the debt lawsuit and get your settlement agreement in writing.

Ready for professional debt settlement help? Turn to SoloSuit.

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.)

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