Start My Answer

How to Settle a Debt in South Carolina

Dena Standley | January 11, 2023

Dena Standley

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

How it feels to settle a debt in South Carolina ^^

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.

Follow these 3 steps to settle a debt 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:

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

Below, we’ll 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

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.

SoloSuit can help you draft and file a South Carolina Answer in minutes online.

Respond with SoloSuit

Get Started

2. Make an offer to start negotiations

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:

  • Determine how much you can save to offer the creditor: Avoid approaching a creditor if you do not have a lump sum saved to make an offer. They could say no to the request when you ask for more time to make a down payment. If you lack funds, plan how to cut back on expenses until you save a considerable amount.

  • Calculate how much the creditor can accept: Approaching the creditor with an extremely low offer can cause them to say no to the settlement request. Begin with a reasonable amount that will pull them in. Generally, original creditors settle for 60–80% of the debt owed, while a collection agency that has inherited your debt can accept between 10–60%.

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.”

SoloSettle sends and receives debt settlement offers for you.

3. Get the settlement agreement in writing

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 the easiest way to settle your debt

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 can protect you

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:

  • Be licensed, and the employees undergo continuous training (SC Code § 37-7-105)
  • Not charge exorbitant fees
  • Not make unreasonable promises, thus deceiving the consumer
  • Ensure they issue a contract for every agreement reached (SC Code § 37-7-110)
  • Be ready to pay the penalty if they violate any of the outlined laws (SC Code § 37-7-118)

If a debt settlement company you work with violates these laws, report them to the consumer protection division in your attorney general's office.

What’s the best debt settlement company?

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:

  • SoloSettle: This company helps you settle a debt of any amount, unlike most debt collection companies that require you to have more than $10,000 debt. SoloSuit is a trusted company that has helped over 7,000 consumers deal with their debt. You can be sure you are not being scammed.

  • Golden Financial Services: This company starts by helping you calculate how much you may pay for debt settlement. Afterward, the experts help you work on how to save the money you need.

  • Debt Quest USA: Although their primary service is debt consolidation, Debt Quest also offers debt settlement services if you request that option or fit the program.

  • New Era Debt Solution: The specialist gives you a free debt analysis before you can commit to any program. There is no obligation at this stage.

Choose the best method to contact the debt collector

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:

  • Phone: Having a debt settlement discussion over the phone can bear results within minutes, but you may not have proof of the discussion unless you record it. Fortunately, South Carolina is a one-party consent state (SC Code § 17-30-20), and you can record the conversation.

  • Mail: Negotiation over the mail ensures you get the agreement in writing. However, the process takes a long time because of the days in between delivery. Use certified mail to confirm receivership and hasten the communication.

  • Email: This method is the most favorable for debt settlement because it's quick, efficient, and leaves a paper trail. Once you get the correct email address, you will probably get the negotiations and the agreement signed in no time.

How to get debt relief in South Carolina

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.

SoloSuit can help you settle 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.”

FAQs on debt settlement in South Carolina

What percentage of debt should I offer to settle?

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.

Is it better to pay off an account or settle it?

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.

How long can a creditor in South Carolina pursue a debt?

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.

What is Solo?

Solo makes it easy to resolve debt with 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.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>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.)

Comments

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

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

Contents