Negotiation to settle debts can be an unpredictable process that is influenced by multiple factors – some personal to the individuals carrying the debt, and some specific to the creditor. Here are 8 key factors that influence the settlement amounts are:

1. The experience, skill, and sophistication of the person (or team) negotiating on your behalf.
2. The age of the debt — generally, referring to the last transaction on the account. California has a statute of limitation (the deadline for filing a lawsuit) laws affecting the ability of the creditor to sue for the money.
3. Details showing on your credit report (that the creditor can view), such as how much debt you have, the number and type of accounts you have kept current (including your mortgage and car loans), the amount of credit you may have available, etc.
4. Whether or not you own or rent a home, and if you own, how much of your equity is protected by law from your creditors
5. The original creditor. Each creditor has different collection methods.
6. The collection agent that the creditor has chosen. It could make a difference whether or not that agent is an internal department, a law firm, or some other third-party collector. Collection agencies also use different investigation and collection methods and have different, defined parameters for settling at certain percentages.
7. Whether or not you have wages that would be subject to garnishment.
8. Lastly, settlement greatly depends on your ability to pay the settlement. Settlements may require one lump-sum payment or sometimes can be paid over a number of months (a 3 – 6 month installment schedule is common).

Through broad experience dealing with countless debt scenarios, the legal team at DiMarco Warshaw law firm will provide straightforward information and advice, and negotiate skillfully for your greatest benefit.

For help, contact the DiMarco Warshaw law firm.  For a free phone consultation Call  (888) 890-5474.   Or, you can email us at: [email protected].