Legal Question in Credit and Debt Law in Georgia

At this stage it is very likely that the company will want to have a recorded judgment against you, and that is the most common way such payment plans are done (via a consent order).

Bear in mind that there are adverse consequences to a settlement as well, sometimes tax-wise, and often on a credit report.

Your best bet now is to consult with a lawyer, which is something you should have done earlier. With a summary judgment motion pending, they could get a final judgment very quickly depending on what you do or do not do.

There are consequences to anything you do. Bankruptcy has consequences. Settling has consequences. Litigating has consequences.

I don't know what you have filed, your circumstances and whether the debt is barred or you have any other defenses to the debt.

Assuming that its your debt and there are no defenses, then settling would be a good option. However, litigation has already started and its very unlikely that the creditor will settle for 25%.

If you want to do a payment plan, most creditors are going to insist on the full balance and they will want you to sign a consent order/judgment as noted by Attorney Ashman. It is only if you can settle in a lump sum prior to entry of judgment that they will they dismiss the suit. But it depends on the debt and your circumstances. Some of my clients are self-employed or retired and cannot be garnished and are otherwise judgment proof. Some clients have assets and it makes sense to do a payment plan. So what you do depends on your circumstances and assets that would be at risk.

A summary judgment motion asks the court to enter judgment as there are no disputed issues for trial. If you were to respond to the motion, your duty would be to show that there are disputed issues for trial. Even though you have filed an answer and responded to discovery, if you admitted that this was your debt, the motion for summary judgment would be granted. So unless the evidence shows a disputed issue (like this is not your debt, the debt is barred or you don't owe as much as they claim, not counting interest) they will get a judgment against you.

However, know that the time to settle is never too late. Whether judgment is entered or the case is in litigation, debts can always be settled.

The approach depends on the creditor and the law firm. Is it Fred Hanna? Zwicker? Someone else? Who is the creditor? An original creditor or junk debt buyer like Portfolio or Midland? Strategy will vary.

If you wish to discuss the specifics in confidence, I give free email consults. I also can settle debts for a reasonable fee. Please contact me at [email protected] if interested.