The Settlement Letter, often called the Settlement Proposal, can be a highly effective tool in the negotiation process. As with many things, this proposal should be a form of sales pitch and not completely about facts. Add in elements that will endear the reader to your plight. Include hardships and any story elements you can think of.
When you are negotiate on the telephone with attorneys, collection agencies, or collection attorneys, one may encounter an impersonal, or even rude attitude on the part of the person you are negotiating with. Do not take this personally. The reasons for this behavior are varied but can be reduced or even eliminated by negotiating in written form.
When one negotiates with a general practice attorney representing a creditor, this attorney is typically motivated to get the file “off their desk.” If a relatively minor amount of money is owed to the creditor, the attorney may not wish to invest a lot of time on the case since the fees will be nominal or non-existent. Many general practice attorneys have indicated that they are handling this case for their client because they represent the client’s other business interests and the attorney may be doing this task as “a favor” to their client, but would otherwise not be doing it.
In this scenario the attorney may indicate that if a reasonable settlement can be achieved, they would be willing to present it to their client. They may even advise the creditor to seriously consider the Settlement Proposal. This is especially true if the consultant representing the debtor, or the actual debtor, has properly set the stage to reflect the debtor’s deteriorating position. In effect, if you can “sell the settlement” to the attorney, the attorney will probably “sell it” to their client.
andre@andrelarabie.com