Home Q&A Forum Negotiating after a demand letter?

Debt Collection

Demand Letter

Maryland

Asked on Sep 17, 2023

Negotiating after a demand letter?

I recently received a demand letter from an individual who claims I owe them money. I am interested in negotiating a settlement outside of court, but am unsure of the best way to go about this. I am looking to get advice from a lawyer on how to proceed in order to reach a mutually beneficial agreement.

Answers from 1 Lawyer

Answer

Debt Collection

Maryland

Answered 922 days ago

Kimm M.

ContractsCounsel verified

Business Lawyer
Licensed in District of Columbia, Maryland
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View Kimm M.
Member Since:
September 28, 2023

As a general rule, the best approach would be to either send a letter in response that proposes the settlement terms you desire, or to call the individual and negotiate by phone.

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It is always an excellent idea to (1) Use a polite and professional tone, along the lines of how you would write if your letter could end up in front of a judge some day; (2) Have a friend or family member review your letter with you before you send it; and (3) include all your pertinent contact information. However, I do want to mention that when you write back, if you don't know what the debt is for, you are within your rights to request written verification of what the debt is for - I mention this because there is a popular scam of sending fake debt collection letters to people and causing them all kinds of stress and distress.

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Unfortunately, often, one can cite all the laws one wants, but the person who owes the debt may simply be unwilling or unable to pay. If the debt is for less than $10,000, consider filing in Small Claims Court in your county. Here is the statewide information: https://www.courts.wa.gov/newsinfo/resources/?altMenu=smal&fa=newsinfo_jury.scc In addition, many counties, such as King, have their own websites and lots of information. When you file in Small Claims Court, be sure to include copies of all relevent paperwork, including any letters you sent to the defendent. And request reimbursement for the debt, interest, the cost of filing the Small Claims case, and any related costs/expenses. Even if you win, however, you may not get paid - but if you win, you will have some other ways to collect, such as garnishing wages or a bank account. I'd be happy to help coach you through the Small Claims process if you'd like to request my help through ContractsCounsel.com

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