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About Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

You are here: Experts > Business > Corporate Law > Collections Law > loan payment

Collections Law - loan payment

Expert: Regan Shinski - 10/29/2009

Question
i owe over $6000 with a creditor. My questions is what is the least amount you can advise I can settle this creditor for, for one time payment, thanks

Answer
Hello:

VERY difficult to answer because it depends on so many variables. So I can only answer in general terms:

* Collection agencies will take less than the original creditor.

* Medical bills will take less than other bills.

* Cash, check, and money order payments may take less than those payments made with a credit card, wire transfer, or third-party payment center - since creditor will not have fees to collect the money. Obviously only pay with a method where you can prove you paid it.

* The older the debt, the less they will take.

* Debts outside the statute of limitations will take virtually anything. Although this is stupid since basically you legally don't owe any of the debt anymore.

* A one-time payment settlement will settle for less than those set up for multiple payments.

* The lender will take significantly less if they believe you are in financial hardship or seriously considering bankruptcy. This tactic is used often, so they REALLY have to believe you will file or they will call your bluff.

* Closed accounts settle for less than open accounts.

* If you can prove they violated the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), or related state law, they will take significantly less - even forgive the debt in many cases.

* Start you offer lower than what you will actually be willing to pay.

All the above are just general rules. It really just comes down to the specific creditor, their policies, and the person at the company that makes the decision.

I'm not being evasive, but a $6000 debt literally could mean they wouldn't take less than the $6000 all the way down to a few hundred dollars. The most common that is reasonably attainable are between 30 - 50% and virtually all will settle in the 60 - 80% range.

That's the best I can give you with the information provided. Get any agreement in writing before sending money. You can also try and get them to clean up your credit reports as part of the agreement.

Good luck!

Regan
mbscompany@aim.com

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