How to Settle a Debt in South Dakota

Edited by Hannah Locklear

Is a creditor or debt collector chasing you for an unpaid debt? Have you received notice of a debt lawsuit against you in South Dakota? If so, you’re not alone. Thousands of people face debt lawsuits across the U.S. every day.

Whatever your reason for not paying the debt, you’ll want to take action quickly to avoid a default judgment. A default judgment allows the creditor or debt collector suing you to garnish your wages, freeze your bank account, or even seize your property. It’s best to avoid the headache of a debt lawsuit and settle the matter before your court date.

Read on to learn how to settle a debt in South Dakota.

Follow these steps to settle your debt in South Dakota

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

You can settle your debt in South Dakota on your own with SoloSettle and avoid having to hire a debt settlement company.

Now, let’s break down each step in detail. Don’t like reading? Check out this video to learn more about the debt settlement process instead:

1. Respond to the debt lawsuit with an Answer

All debt lawsuits start with a creditor or debt collector’s Complaint. In the Complaint, they’ll identify the debt they’re suing you for and the amount. They’ll probably include a breakdown of the amount, including the original balance, interest, and fees.

Once you receive your copy of the Complaint, you should examine it carefully. Note the critical information and compare it to your records. If any of the information is incorrect, you’ll want to clear it up in your Answer. For instance, if the alleged debt amount is inaccurate, you can dispute it.

Most attorneys recommend that you deny as many claims against you as possible, forcing the creditor or collector to prove each one. If they can’t, they might just drop the case altogether.

Next, you must file your Answer into the case before South Dakota’s deadline, which is 30 days. Send a copy to the opposing lawyer after filing the original Answer document with the court that has jurisdiction over the claim.

Check out this video to learn more about how to Answer a debt lawsuit:

While your goal is to settle your debt before your court date, thus eliminating the need for a lawsuit, filing an Answer ensures that the creditor can’t obtain a default judgment through sneaky tactics (like failing to mention you’ve settled the debt).

2. Make an offer to start settlement negotiations

Determine how much of the debt you can afford to pay the creditor. Ideally, you’ll want to start by offering at least 60% of the debt’s value. That’s enough for the creditor to see you’re serious about settling.

Many debt collectors and creditors will counter your offer with one of their own. You might go through several rounds of bargaining before reaching a settlement agreement.

According to America Fair Credit Council’s Regan Report, the average consumer can reach a debt settlement of 50% when working with a debt settlement company. That being said, debts settle for a very broad range of amounts. How much the debt actually settles for depends on the answers to a variety of questions:

• Is it a signed promissory note or book account?
• Is there a meritorious defense?
• Are there any offsets?
• Is it interest bearing?
• Is there a valid fee-shifting provision? A fee-shifting provision requires the borrower to pay the cost of collection.
• When was the last payment?
• Is the debt owned by the original creditor or has it been assigned to someone else?
• Is it part of a federal or state loan program or is it a private loan?
• Is it secured credit?
• Is it dischargeable in bankruptcy? Is it a student loan?

Answering these questions will give you a better idea of a realistic settlement offer. But like we said, 60% is a good place to start.

Remember that time is of the essence. You’ll want to start the case quickly, long before your court date, to give the creditor time to negotiate with you.

You should start the negotiation via email. That way, there’s a written record of the negotiation process. It’s also quick; you won’t need to wait for the post office to send and deliver your letters concerning the negotiation.

SoloSettle’s software takes care of the negotiation process for you.

Now, let’s look at an example.

3. Get the settlement agreement in writing

After several rounds of negotiation, you’ll reach an agreement with your creditor. When you do, make sure it’s a settlement you can follow through with; if you can’t afford to pay it, your creditor will likely restart the litigation process against you.

You’ll also want to get the agreement in writing. Usually, the creditor or debt collector will prepare this document for you. Be sure to review it carefully before signing. Here’s a debt settlement agreement example.

You’ll note that the example required a notary to sign for both parties. Notarizing the agreement provides additional legal protections. You’ll have witnesses who can vouch for the agreement's validity, ensuring that your creditor can’t come after you for the remaining balance due.

It’s important to follow the terms of the agreement. When you send your payment to the collector, we recommend using certified mail. Certified mail provides you with a routing number you can use to track the delivery of the payment.

You should also keep a copy of the check you send and your bank statement showing the payment clearing your account.

Let SoloSettle manage your debt settlement agreement for you.

What are South Dakota’s debt settlement and debt collection laws?

South Dakota has adopted the Fair Debt Collections Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA), which are federal regulations concerning debt collection. There are no additional state laws concerning debt collection practices.

The FDCPA does not allow debt collectors to:

• Call the debtor at odd hours, such as before 8 a.m. or after 9 p.m.
• Use false threats or profane language in their communications with the debtor.
• Call the debtor repeatedly throughout the day.
• Let the phone ring continuously if the debt collector doesn’t answer.

In addition, the collector must validate the debt if the consumer asks them to.

Under the FCRA, creditors are required to follow these rules:

• Remove negative information after seven years.
• Notify the consumer if a creditor or potential employer uses information in their report against them.

South Dakota has a statute of limitations for pursuing a lawsuit for consumer debt. Debt collectors can no longer pursue the consumer in court if the debt passes the statute of limitations.

The table below outlines the South Dakota statute of limitations on debt:

Statute of Limitations on Debt in Vermont

Type of Debt	Deadline
Open accounts Claims of fraud Contracts (S.D. CL § 15-2-13)	6 years
Foreign judgments Other actions not provided for (S.D. CL § 15-2-8)	10 years
Domestic judgments Sealed instruments not including real estate (S.D. CL § 15-2-6)	20 years

If your debt is past the statute of limitations, your debt collector or creditor cannot sue you in court. A court will dismiss any lawsuit they file. If you believe your case is past the statute of limitations, you should include that information in your Answer to the debt collector.

What’s the best debt settlement company?

The following are a few excellent debt settlement companies that will work with you to settle your debts.

SoloSettle

SoloSettle is the only debt settlement company with a solution for individuals sued for debt. SoloSettle can help you settle any debt amount and handles the entire settlement negotiation process so that you never have to talk to debt collectors. Once we have an agreement you’re satisfied with, we’ll handle the payment; you won’t need to provide your debt collector with your payment details.

When a settlement agreement is reached, SoloSettle manages the settlement agreement documentation for you and protects your sensitive financial information from the collectors, preventing them from over-charging you.

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.”

National Debt Relief

National Debt Relief is one of the oldest debt settlement companies. It works primarily with credit card debts and can help you set up a payment plan for settling your obligations with your creditors. Most programs last between two and four years, and you must have a minimum of $10K in debt to qualify.

Accredited Debt Relief

Accredited Debt Relief helps people settle unsecured debts, including credit card loans, personal loans, payday loans, and medical debt. Programs last anywhere from one to four years, and you must have a minimum of $10K in debt to qualify. Accredited Debt Relief charges between 15% and 25% of the total value of your debt for its services.

What’s the best way to contact my creditor to arrange a debt settlement in South Dakota?

You can make an settlement offer through mail, email, or phone. That being said, it’s best to communicate with debt collectors in writing.

Mail is a good option because you’ll have documentation of each step of the settlement process, but the disadvantage is that it takes a long time to send and receive letters.

Email is a good middle ground, because it’s instantaneous (like a phone call), but it also helps you get everything in writing (like mail). The only downside is that it may be difficult to find the right email address for your creditor or debt collector.

If you decide to call your creditor, it’s best to record the phone call. Under SD Codified L § 23A-35A-20, only one party has to consent to record a call in South Dakota. In this case, you are the person consenting to the recording.

Recording your call helps ensure that the debt collector doesn’t try to deny that you settled with them. Still, once you get an oral settlement agreement, you should also ask for a written, signed agreement before sending the money.

FAQs on debt settlement in South Dakota

Below are a few questions we frequently hear about debt settlement in South Dakota.

What percent should I offer to settle a debt?

It depends. Some creditors will accept 30%, while others require much more — sometimes up to 80%. We suggest starting with 60% of the debt’s value. Your creditor will consider your offer and determine whether it’s fair. If not, they’ll provide you with a counteroffer.

Can I do debt settlement on my own?

Yes, you can handle the debt settlement process on your own. However, make sure to follow the instructions in this guide. You should make sure that you get your agreement signed and notarized in case you need to refer to it.

Is it better to settle a debt or go to court?

If you know you owe the money and don’t have much recourse to your creditor’s claims, it’s better to settle the debt. Settling the debt allows you to avoid a potential judgment against you. You’ll also forgo any further collections activity from the debt collector.

If you choose to go to court, be aware that the judge may not find in your favor. To support your case, you should have a solid Answer to the creditor’s Complaint that outlines your reasons for nonpayment.

Use out other guides on dealing with debt in South Dakota

We have a few other guides concerning debt in South Dakota that provide even more information:

• How to Get Debt Relief in South Dakota | SoloSuit Blog
• How to Answer Summons for Debt Collection in South Dakota | SoloSuit Blog
• South Dakota Statute of Limitations on Debt Collection | SoloSuit Blog
• South Dakota Court Case Search — Find Your Lawsuit | SoloSuit Blog

Settling a debt in South Dakota is possible and can save you money

Breaking free from debt is often a huge relief. If you cannot completely repay your unpaid debt, settling it is a viable alternative. Following our steps, you can obtain a favorable settlement that allows you to move on from your old debt.

SoloSuit wants to help. Reach out with questions today, and we will do our best to help you get back on the right financial track.

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.)

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

• 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
• Vermont; Vermont (Small Claims court)
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

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.

• 11 Charter Communications
• AAA Collections
• Aargon Agency Inc
• Absolute Resolutions Investments LLC
• ACEI Collections
• Account Services
• Accredited Collection Services
• Accredited Collection Services
• Advanced Recovery Systems
• AES NCT
• AFNI Collections
• Alco Capital Group LLC
• Aldous and Associates
• Alliance Collections
• Alliance One
• Alliant Capital Management
• Alpha Recovery Corp
• Alltran Financial
• Alltran Health
• Alorica Inc.
• Amcol Clmbia in Court
• American Coradius International
• American Profit Recovery
• American Recovery Service
• Americollect
• AmSher Collection Services
• Apelles LLC
• AR Resources
• ARC Collections
• ARM Solutions
• Arrow Financial Services
• ARS National Services
• ARSC Debt Collectors
• ARS National Services
• ARstrat
• AscensionPoint Recovery Services
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Atlantic Credit and Finance
• Atradius Collections
• Automated Collection Services, Inc.
• Autovest LLC
• Avante USA
• Avantus
• AWA Collections
• Balekian Hayes
• Bay Area Receivables
• BCA Financial Services
• BC Services
• Benuck and Rainey
• Berlin-Wheeler
• Bluebonnet Financial LLC
• Bonneville Collections
• Bull City Financial
• Bureaus Investment Group
• Cach LLC
• Caine and Weiner
• Capio Partners
• Capital Accounts
• Capital Collections
• Capital Management Services
• CardWorks
• Carmel Financial/New Coast Direct
• Cavalry SPV I LLC
• CBCInnovis
• CBCS Collections
• CBE Group
• CBV Collections
• CCB Credit Services
• CCS Collections
• CCS Offices
• Central Mediation Services
• Central Portfolio Control
• Cerastes LLC
• Choice Recovery
• Choice Recovery Inc
• CKS Financial
• CKMS Financial
• Client Services
• CMRE Financial Services
• COAF
• Coast Professional
• Comenity Bank Debt Collection
• Commonwealth Financial
• ConServe Debt Collection
• Consumer Collection Management
• Contract Callers Inc
• Convergent Healthcare Recoveries
• Convergent Outsourcing
• Couch Conville & Blitt
• Covington Credit
• CRDT First
• Credco in Court
• Credence Resource Management
• Credit Bureau Systems
• Credit Control Corporation
• Credit Management Company
• Credit Management LP
• Credit Systems
• Credit Systems
• CSIEZPay
• CTC Debt Collector
• CVCS Debt Collection
• Cypress Financial Recoveries
• D&A Services
• Daniels, Norelli, Cecere & Tavel P.C.
• DCM Services
• Debt Recovery Solutions
• Delanor Kemper & Associates
• Department Stores National Bank
• Direct Recovery Associates
• Discover Collections
• Diversified Adjustment
• Diversified Consultants
• Diversified Recovery Bureau
• DNF Associates, LLC
• Dodeka LLC
• DRS Credit
• Dynamic Collectors
• Eagle Loan
• Eagle Accounts Group, Inc.
• Eastern Account System
• EduCap
• Ellington and Associates Collections
• Encore Capital Group
• Enerson Law
• Enerson Law LLC
• Enhanced Recovery Company
• EOS CCA
• ERC Collections
• ERSolutions
• Estate Information Services
• Equable Ascent Financial
• Everest Business Funding
• Executive Credit Management
• Faber and Brand
• Factual Data
• Falls Collection Service
• FBCS
• FCO Collections and Outsourcing
• FIA Card Services
• fin rec svc (Financial Recovery Services)
• First Federal Credit Credit Control
• First Financial Bank
• First Portfolio Ventures LLC
• First Progress
• FirstPoint Collection Resources
• Firstsource Advantage
• FMA Alliance
• FNB Omaha
• Forster & Garbus
• Franklin Collection Services
• Freedom Plus
• Freshview Solutions
• Frontline Asset
• Frost Arnett
• Fulton Friedman & Gullace LLP
• Galaxy International Purchasing, LLC
• GC Debt Collection
• GC Services
• General Revenue Corporation
• GLA Collections
• Glass Mountain Capital
• Glasser and Glasser
• Global Credit Collection Corp
• Global Trust Management
• GMAC Financing
• Golden 1 Credit Union
• Grant and Weber
• Grant Mercantile Agency
• Gulf Coast Collection Bureau
• Gurstel
• Halsted Financial Services
• Harris and Harris
• Harvard Collection
• Harvest Credit Management
• Helvey and Associates
• Hollis Cobb
• Holloway Moxley
• Hosto Buchan
• Howard Lee Schiff
• H&R Accounts
• HRRG
• Hudson & Keyse LLC?
• Hunter Warfield
• IC System
• Impact Receivables Management
• Innovative Recovery
• Integras Capital Recovery LLC
• Javitch Block
• JHPDE Finance 1 LLC
• JP Receivables Management Partners
• JPMCB card
• Kenneth Eisen and Associates
• KeyBank student loans
• Kinum
• Kirschenbaum, Phillips & Levy P.C.
• KLS Financial Services
• Kramer & Frank
• Lakeside Collection
• Lending Club
• Lincoln and Morgan Kabbage
• Linebarger Goggan Blair & Sampson LLP
• Lockhart Collection Agency
• LJ Ross Associates
• LTD Collections
• Malcolm S. Gerald and Associates
• Malen & Associates
• Mandarich Law Group
• Mannbracken
• Marcam Associates
• MARS Inc. Collections
• MBA Law
• MCA Management Company
• McCarthy, Burgess & Wolff
• Meade & Associates
• Medicredit
• Mercantile Adjustment Bureau
• Merchants Credit Association
• MGM Collections
• Michael J Adams PC
• Midland Funding LLC
• Mid-South Adjustment
• Monarch Recovery
• Monterey Financial
• Moss Law Firm
• Mountain Land Collections
• MRS Associates
• MRS BPO
• MSW Capital LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Nathan and Nathan PC
• National Collegiate Trust
• National Credit Adjusters
• National Credit Care
• National Credit Systems
• National Enterprise Systems
• National Recovery Agency
• National Recovery Solutions
• Nationstar
• Nationwide Credit
• Nationwide Recovery Services
• Nationwide Recovery Systems
• NCEP LLC
• NCO Financial Systems Incorporated
• North American Recovery
• Northland Group
• Northstar Capital Acquisition
• Northstar Location Services
• NPAS
• NRC Collection Agency
• Oliver Adjustment Company
• Oliphant Financial, LLC
• Oportun
• P&B Capital Group
• PCB Collections Agency
• Palisades Collection LLC
• Pallida LLC
• Paragon Contracting Services
• Paragon Revenue Group
• Payday Loan Debt Collectors
• Pendrick Capital Partners
• Penn Credit
• Perdue Brandon
• Persolve LLC
• Phillips & Cohen Associates
• Phoenix Financial Services
• Pioneer Credit Recovery
• PMAB LLC
• PRA Group, Inc.
• Pressler, Felt & Warshaw LLP
• Prestige Services, Inc.
• Prince Parker and Associates
• ProCollect
• Professional Finance Company
• Progressive Management Systems
• Provest Law
• PYOD LLC
• Quaternary Collection Agency
• RAB Collection Agency
• Rash Curtis and Associates
• Radius Global SOL
• Radius Global Solutions
• Rawlings Company
• Razor Capital
• Real Time Resolutions
• Receivables Performance Management
• Regents and Associates
• Reliant Capital Solutions
• RentGrow
• Resurgent
• Resurgent Capital Services and LVNV Funding
• Revco Solutions
• Revenue Enterprises LLC
• Revenue Group
• RGS Financial, Inc.
• RMP LLC in Court
• RMP Services
• RS Clark and Associates
• RSIEH
• RSIEH
• RTR Financial Services
• Rubin & Rothman
• Salander Enterprises LLC
• Samara Portfolio Management
• SCA Collections
• Scott Parnell and Associates
• Second Round Collections
• Second Round Sub LLC
• Selip & Stylianou LLP
• Sequium Asset Solutions
• Sessoms and Rogers
• Sherman Acquisition
• Sherman Financial Group
• SIMM Associates
• Source Receivables Management
• Southern Management Systems
• Southwest Credit Group
• Spire Recovery Solutions
• SRS Company
• Stark Collection Agency
• State Collection Service
• Stenger and Stenger
• Stillman Law Office
• Summit Account Resolution
• Sunrise Credit Services
• Superlative RM Debt Collector
• Suttell and Hammer
• Synergetic Communication
• Synerprise Consulting
• The Law Office of Michael J Scott
• Trellis Company
• Troy Capital
• TRS Recovery Services
• TrueAccord
• Tulsa Teachers Credit Union
• UCB Collection
• UHG 1, LLC
• Unifin
• Unifin Debt Collector
• Unifund
• Universal Credit Services
• US Bank Collections
• USAA collections
• USCB America
• Valentine and Kebartas
• Valley Servicing
• Vance & Huffman LLC
• Van Ru Credit Corporation
• Velo Law Office
• Velocity Investments
• Viking Client Services
• Wakefield and Associates
• Waypoint Resource Group
• WCTCB
• Weinberg and Associates
• Weltman, Weinberg & Reis
• Westwood Funding
• Williams and Fudge
• Wilshire Consumer Credit
• Wolpoff & Abramson
• Worldwide Asset Purchasing
• www.AutomotiveCredit.com
• Zarzaur & Schwartz
• Zwicker & Associates

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.

• American Express; American Express – Debt Collection
• Bank of America
• Barclay
• Best Buy Credit Card
• Capital One
• Chase
• Credit One Bank
• Old Navy Credit Card
• PayPal Synchrony Card
• Regional Finance
• Retailers National Bank
• Reunion Student Loan Finance Corporation
• SYNCB/PPEXTR
• Synchrony Bank
• Synchrony Walmart Card
• Target National Bank
• Webbank
• Wells Fargo
• Can I Pay My Original Creditor Instead of a Debt Collection Agency?
• Can I Settle a Debt with the Original Creditor?

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.

• Am I Responsible for My Spouse's Medical Debt?
• Do I Need a Lawyer for Medical Bills?
• Do I Need a Lawyer to Fight Medical Bill Debt?
• Does Bankruptcy Clear Medical Debt?
• How Much Do Collection Agencies Pay for Medical Debt?
• How to Find Medical Debt Forgiveness Programs
• Is There a Statute of Limitations on Medical Bills?
• Medical Debt Statute of Limitations by State
• Summoned to Court for Medical Bills — What Do I Do?
• Summoned to Court for Medical Bills? What to Do Next

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.

• How Arbitration Works
• How to Find an Arbitration Clause in Your Credit Agreement
• How to Make a Motion to Compel Arbitration
• How to Make a Motion to Compel Arbitration in Florida
• How to Make a Motion to Compel Arbitration Without an Attorney
• How Credit Card Arbitration Works
• Motion to Compel Arbitration in California
• Sample Motion to Compel Arbitration

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.

• 1-800-390-7584
• 800-289-8004
• 800-955-6600
• 8009556600
• 877-366-0169
• 877-591-0747
• 800-278-2420
• 800-604-0064
• 800-846-6406
• 877-317-0948
• 888-899-4332
• 888-912-7925
• 202-367-9070
• 502-267-7522

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.

• 15 USC 1692 Explained
• Does the Fair Credit Reporting Act Work in Florida?
• FDCPA Violations List
• How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
• How to Make a Fair Debt Collection Practices Act Demand Letter
• How to Submit a Transunion Dispute
• How to Submit an Equifax Dispute
• How to Submit an Experian Dispute
• What Debt Collectors Cannot Do — FDCPA Explained
• What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
• What does “meets FCRA requirements” mean?
• What does FCRA stand for?
• What is the Consumer Credit Protection Act