How to Settle a Debt Without an Attorney

For those potential clients who would like to settle a debt on their own or where it is not cost effective to retain us, we have created this page to help you along the way.

Tips for Settling a Debt on your Own

First- Determine what type or person or entity own the debt

You need to understand your opposition.  It comes down to who owns the debt (debt owner), who services the debt (collection agency or law firm), and who is suing upon the debt (law firm).

Second- Determine their likely investment, ability to resell, ability to recover

Third- Determine your leverage

There are many types of leverage, here are the most common:

There are more forms of leverage but the above are the most common.  There is no hard and fast formula for what leverage produces what deal.  Every creditor and case are different.  Some creditors get aggressive hoping to outspend you in litigation while others will fold like a wet rag at even small forms of leverage.  If you have leverage, use it or allege it.

Fourth- Determine your initial offer and alternatives if negotiations fail

There are many stories online of creditors that settle at .10 on the dollar all the time and you are an idiot if you can’t get that.

Fifth- Contact the collector and make your pitch


Sixth- Confirming the deal


Seventh- Making the payment


Either- Following up regarding satisfaction of judgment and credit report