An $1,800 Fee in 5 Days

I never know exactly what to expect going into settlement negotiations with a creditor and attorney with whom I have not previously dealt.  They may refuse to compromise at all on a debt, they may take weeks or even months to finalize a settlement or they may move very rapidly.

A case I settled last week was a surprise combination of a refusal to compromise that turned into a quick discounted settlement... resulting in an $1,800 fee.

I had emailed a prospective client offering my assistance with a recent lawsuit where his company was named as the defendant.  Once he was served, he contacted me.  After discussing the background on the claim, I set my fee and obtained some preferred payment guidelines from my new client.  I then quickly emailed the creditor's attorney and opened negotiations with a fairly low settlement offer on a long term payment plan.  The offer was almost immediately rejected outright and the attorney reiterated the demand for payment in full plus over $5,300 for attorney's fees and back interest.  She also provided a very short term payment plan that she had previously offered to my client.

So I called her to discuss this and explain my client's difficult financial situation.  She still refused to budge and it was time to play hard-ball.

My next email contained an increased offer (still at a discount) on a monthly payment plan.  But, in this communication, I made it clear this was a final offer and I reminded her that her client would be "rolling the dice" if they decided to pursue a judgment for the full amount.  Her quick reply was an acceptance of the offer.

All of this occurred from Monday to Friday of last week.

Again, I did not know going into negotiations whether this would take 3 days or 3 months.  In the end, (and as usual) all partied benefitted,

Scott F. Soape