How to Settle Debt for Pennies on the Dollar

Edited by Hannah Locklear

They say an ounce of prevention is worth a pound of cure. But in debt collection, an ounce of prevention may be worth thousands of pounds of cure.

As soon as you receive the debt collection Complaint—that complicated legal document that uses words like “plaintiff,” “herein,” and “damages”—you usually only have a couple of weeks to respond, otherwise the court enters a “default judgment.” A default judgment means you lose. Automatically. In reality, nearly 90 percent of all debtors end up in a default judgment. The creditor may then garnish the debtor's wages or place judicial liens on the debtor's personal property. Trust us, you don't want this.

Preventing a default judgment can be a difficult and confusing process. Preventing a default judgment without any help can leave you pressed for time and overwhelmed! Debt collectors use confusing legalese and often leave out important information, like your case number, making it more difficult for you to navigate the process yourself. That is why it is so important to have someone who can help you fight this battle. Unfortunately, hiring a debt collection defense attorney to negotiate your case for you can cost you anywhere from $500 to thousands of dollars depending on the facts of your case. Thankfully, there is a quicker, cheaper solution for you. Meet SoloSuit.

SoloSuit is closing the justice gap to enable you to fight back against debt collectors without paying huge attorney's fees.

Don't let debt collectors intimidate you. Respond with SoloSuit.

Here's how SoloSuit works

SoloSuit takes away the stress, the legalese, and the headaches so that you can focus on what you enjoy most: watching the game, spending time with family, or anything that doesn't involve getting sued! SoloSuit does this in just three easy steps.

First, you tell us your story. We will ask you some simple questions to understand who you are, what debt you have, and how you should respond to the Complaint. Based on your answers, we create an Answer document that is specific to your case. This includes any affirmative defenses you might have (arguments you can make for why you do not owe the debt). Creating this Answer document is completely free!

Second, a real-life attorney can review the Answer document to make sure that it is complete. If the Answer isn't written correctly, the court might not accept it, which would put you back at square one with even less time to answer the Complaint. That is why this step is so important.

Lastly, we can file your Answer with the right office in the right court. When you only have 14-30 days to respond to a debt collection Complaint, your Answer must get to the right place in time. SoloSuit can help you prepare, file, and serve your Answer to the debt collector in an average of 6-8 days. Using SoloSuit for all of these steps is up to you.

It's that easy!

Make the right defense the right way with SoloSuit.

What comes after you file an answer?

Filing an Answer is a necessary step, but it usually is not the end. Just because you file the Answer does not mean your fight is over. Although about half of SoloSuit users get their cases dismissed, you might still have to go to court and argue your case. SoloSuit is the ounce of prevention that can save you thousands of dollars. Instead of having a default judgment, you will have two priceless things: time and the power to negotiate.

Preventing a default judgment gives you time to prepare your defense. Many debt collection agencies will file lawsuits in hopes that the debtor will just not respond. If you do not respond, the debt collectors do not have to prove their case. When you respond, the collectors will be forced to find the documentation that proves you have the debt--documentation they might not even have! Maybe you already paid the debt, the agency is suing outside the statute of limitations, or maybe the agency is suing the wrong person! Preventing that default judgment can give you time to prove these things.

Preventing a default judgment also gives you the power to negotiate and settle your debt. If you are sued for a debt, it probably does not come as a surprise. Likely, you know you are behind on your payments. Debt collectors know that getting some money is better than getting no money at all. So sometimes debt collectors will even be willing to settle your case for less than the balance on the debt! You can settle debt for pennies on the dollar. That represents even more money that SoloSuit can help you save. A debt settlement may affect your credit score.

SoloSuit can help you save time and money and give you the power to negotiate your debt. Because SoloSuit is only designed to help you answer the Complaint, you might need more help to negotiate. The people at SoloSuit can help guide you to additional resources when you are done filing your Answer.

Use SoloSuit to respond to a debt collection lawsuit in 15 minutes.

Why should you care about debt collection?

Every year, millions of Americans are sued by debt collectors. This represents tens of millions of dollars taken from everyday people like you! Debt collectors are pros at making you feel confused, alone, and like you do not have any other option but to do exactly what they say. Thankfully, this is not true. With a little bit of strategy and some help from SoloSuit, you can take control of your debt collection.

When you do not answer the debt collector's Complaint you have one option: lose and pay the debt collector basically whatever they want. When you file your Answer in time you get time, the power to negotiate or fight your case, and you save money. When thousands of dollars are on the line, you cannot risk ignoring the Complaint.

Together with SoloSuit, we can fight back against unfair debt collectors.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri

Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah; File a Motion to Satisfy Judgment Vermont Virginia Washington West Virginia Wisconsin Wyoming

Guides on how to beat every debt collector

Being sued by a different debt collector? We're making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

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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

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Effective strategies for how to get back on track after a debt lawsuit

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West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

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