The debt collection lawsuit against you has been settled by us — so what is the actual settlement agreement you will need to sign?
It is an actual document that we send to you in hard copy or PDF that will settle the case.
It identifies the lawsuit and the parties.
Then everyone disputes owing anyone any money and no one admits to doing anything wrong.
But the debt collector or debt buyer will drop all claims in the lawsuit with prejudice. This means they cannot sue you again.
It also means that the debt will not be sold, transferred, assigned, etc. In other words, the debt dies.
And you give up any claims against the debt collector.
So you might think of this as global peace between you and the debt collector.
Next, we talk about credit reporting. If there is credit reporting by the debt collector, it goes away. If not credit reporting, then the collector promises to never credit report on this account.
**Case is over **No credit reporting **No money is paid by you to the collector — instead you agree not to sue the collector.
A lot of times these agreements need to be notarized by a notary public. We’ll explain all of that when we send you the agreement.
Send us back the agreement as quickly as possible (scan or fax) because we want to get that to the collection lawyer ASAP. Then when that happens, the collection lawyer will ask the court to dismiss the case with prejudice which we will cover in our next article.
We hope you find this and the other posts in this series helpful and if we can help you, feel free to call us at 205-879-2447 or click on the red button below and we’ll get right with you.