Dena Standley | January 11, 2023
Summary: If you’ve been sued for a debt in South Carolina, you can still settle the debt before going to court. You should respond to the lawsuit, send a settlement offer, and get the settlement agreement in writing. Debt settlement will get your case dismissed and give you a financial restart. SoloSettle can help you with all these steps and more.
Many South Carolina citizens have avoided filing for bankruptcy through debt settlement. Creditors and debt collectors who accept debt settlement often want to close delinquent accounts to improve their portfolios. Others want to get a small margin of the revenue rather than lose the whole amount.
Consider debt settlement if you still have an income stream. You can plan to save around 60–80% of your entire debt amount. Afterward, approach the creditor through a debt settlement company or on your own and offer to pay off the debt.
In this article, we will cover how to help you get the best settlement deal in South Carolina.
Compared to other debt management options, debt settlement allows you to get out of debt faster. Working with a debt settlement company, it usually takes around 2–3 years to settle all your debts, while debt consolidation takes 5–9 years. Debt settlement can also be a better option than bankruptcy because you decide how to manage your finances instead of the court doing it for you.
Follow these steps to settle your debts when you receive a debt collection lawsuit in South Carolina:
Below, we’ll explore each of these steps in detail. Don’t like reading? Check out this video instead:
Most South Carolina debt lawsuits end in a default judgment against the consumer because they ignore the lawsuit or do not know they must file an Answer with the court. As a defendant, filing your Answer is mandatory before beginning the settlement process.
When you get sued, you should receive a Complaint document that lists all the allegations the creditor or debt collector has made against you. You must respond to each claim in one of three ways: admit, deny or deny due to lack of knowledge. Lawyers recommend that you deny as many claims as possible to force the creditor or collector to prove their case.
Next, you must list your affirmative defenses. These are reasons you shouldn’t be held liable for the debt and can help your case if the creditor rejects your settlement offer. But more often than not, they would rather settle than go to court.
In South Carolina, you have 30 days to file an Answer to a debt lawsuit before you lose automatically by default judgment. With this kind of judgment, creditors and debt collectors can garnish your wages and seize your property. This is why it’s so important to respond to the case; it helps you avoid default and gives you time to work out a settlement agreement.
Once you have filed the Answer and confirmed it is in the South Carolina court records, choose a settlement method that suits your needs. You can do it yourself, hire a debt settlement company, or work with SoloSettle (which combines the two methods). Consider the following factors as you decide:
Once you’ve decided how much you can pay off, send a settlement offer to your creditor or debt collector. You might say something like:
“I see you’re suing me for [$___] for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have [$___] that I can pay within 30 days to settle the debt in full. Let me know if you accept.”
Countless consumers have been deceived by debt collectors who promised to close accounts after a settlement agreement but failed to keep their promise. They often request you pay the balance so that they honor the commitment they made during negotiations. To avoid this trap, ensure you get the settlement agreement in writing.
The agreement should include your debt account details, the amount the creditor accepted as full payment, the promise made after making payments, and any relevant laws to make the agreement valid. Use this debt settlement sample as a guide to ensure you include all vital information.
Now, let’s look at an example of how to settle a debt in South Carolina:
Example: Danny, who lives in South Carolina, is being sued by Dynamic Recovery Solutions for an old credit card debt of $5,000. He uses SoloSuit to respond to the lawsuit and file an Answer before the 30-day deadline. Next, Danny takes a closer look at his finances to calculate how much he can afford to pay now to settle the debt. With SoloSettle, Danny sends his first settlement offer at 60% of the debt amount ($3,000). After a few rounds of negotiations, Dynamic Recovery Solutions accepts a settlement of 70% of the debt ($3,500). Danny saves some money and feels ready to start over financially.
Solosettle is an exceptional debt settlement web app that allows you to send and receive settlement offers. It helps you negotiate and reach a settlement deal while controlling the narrative. The app provides a structured process that drafts the offers and protects you from deceitful debt collectors.
Additionally, SoloSettle documents contain all the legal language needed to protect your rights and make you sound professional. After reaching an agreement, the app takes care of documentation and ensures your financial information is safe.
Let's look at an another example to illustrate our discussion so far.
Example: Becky received a lawsuit letter from Clear Credit for an $11,340 debt. She knew going to court may cost her more if they won. She chose to work with SoloSettle because she wanted to control the negotiation process while being protected from them by experts. Becky began the negotiation at $6,300 (55%). After several counteroffers, Clear Credit accepted $8,000 (71%). SoloSettle took care of the settlement agreement, and Becky made the payments when they gave her the go-ahead.
South Carolina debt settlement laws under the consumer protection code have saved consumers from being taken advantage of by debt settlement companies. These laws dictate how these companies should charge, run the business, and educate consumers about debt. For example, a debt settlement company should:
If a debt settlement company you work with violates these laws, report them to the consumer protection division in your attorney general's office.
The best debt settlement company will plan with you how to settle your debt and recommend actionable steps to take. Further, avoid debt settlement companies that ask for a down payment before they begin working on a debt settlement deal. Consider working with the following companies:
No one likes communicating with debt collectors because they leave you frustrated or angry. Your conversation this time may be better because you are offering them money. To ensure you have a fruitful discussion, choose one of the following communication methods:
Debt consolidation and filing for bankruptcy are other ways of managing your debt apart from debt settlement. To help you choose the method that suits your debt situation, check out the following guide on how to get debt relief in South Carolina. In addition to helpful information, you'll find a list of organizations that can help you manage your debt.
We are committed to helping every consumer become debt free by educating them on debt matters and using our products to communicate with debt collectors. SoloSettle can help you get a reasonable debt settlement deal and be on your way to reducing your debt burden. Contact us today for more information.
Check out this review from a real SoloSettle customer:
“I'm very thankful for SoloSettle.. Having a third party negotiate the settlement was instrumental in resolving this case and saved me from two giant headaches: 1) I didn't have to deal with the plaintiff's lawyer and 2) I didn't have to go to court. I also love that the payment was processed through SoloSettle. I was nervous about sharing my personal financial data with the other side, but SoloSettle protected that for me. I hope I never get sued again, but if I do, I would use SoloSettle again in a heartbeat.
SoloSettle really saved me a ton of time and heartburn and kept me from having to be my own lawyer in court.”
If you are negotiating with an original creditor, offer between 30–50%, and they will probably counter the offer. Generally, most creditors accept between 60–80% of the original debt. However, if a debt collection agency has bought the debt, then offer between 10–30%. They often buy the debt for a fraction of the original amount and will be willing to settle for less than the original creditor.
Paying off your debt in full is always better because it doesn't affect your credit score as a settled entry does. Moreover, it is better to have a settled entry on your credit report than an unpaid status.
A creditor can pursue a debt until the statute of limitation has reached (the debt expires). For instance, a mortgage in South Carolina has a statute limitation of 20 years, a credit card is three years, an auto loan is six years, and medical debt is three years.
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.
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.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.
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