Found an issue on this page? Let us know and we will look into it as soon as possible.
How do I get a debt collection agency to lower the amount that I owe so I can pay it off?
Anonymous2 views3 answers
In 2009, I co-signed on a lease to help out a friend of mine. She moved into the property, then left without fulfilling her rent payment obligations. I now have an $11,000 debt on my credit report because of this. I've been paying $50/month to the debt collection agency on this debt, but it's barely making a dent and the interest is causing the debt to increase by much more than I am actually paying off. Other than student loans, the rest of my credit is good. I've tried to make some sort of deal with the collection agency to lower the amount by at least half, but they are unwilling to work with me. I need some advice as to what direction to take. Thanks.
I'd ask where your friend is, but I suspect this is causing a rift between the two of you. Given the size of this debt, you should consider speaking with a qualified bankruptcy attorney in your area. If BK is not for you, figure out how much you can truly afford to pay before negotiating with the creditor for a reduced payoff.
Repayment plans and settlement are voluntary. The only way I know to force a creditor to accept a certain payment is through a bankruptcy Chapter 13 or pay nothing if you qualify for chapter 7. You also have a right to offset by suing the friend to collect. Perhaps you could get better results if you hire an attorney, but this is only a guess because no one can predict what the creditor would be willing to do and they have a legal right to collect the entire amount unless of course the debt is discharged or reorganized under bankruptcy laws.
No good deed ever goes unpunished.
Legally, the creditor is not required to accept less than payment in full, unless you get relief in the bankruptcy court under Chapter 7, Chapter 13 or Chapter 11.
The collection agency probably has some information about your finances. Do not give them any more information. That would just make it easier for them to enforce a court judgment.
Because you have been paying them, the Statute of Limitations has not started to run.
You should meet with an attorney to review your legal rights and legal responsibilities. Sometimes an attorney can, with some ammunition, negotiate a settlement. Stay away from the debt settlement companies that promise to reduce your debt if you pay them instead of the creditor. They are nothing but collection agencies in disguise.
