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How Much of a Discount Can You Expect?

One of the most frequent questions I get is: “How much can you discount this debt?” My answer is often: “It depends”.

There are many factors that impact a settlement and every situation is unique, even when they entail a creditor company I have dealt with previously. I never know what to expect until I consult with my client about the nature of the claim and I start settlement negotiations with the creditor or their agent.

Some creditors are more willing than others to compromise a debt and some are entirely unwilling to compromise at all.

Many times, creditors are more willing to agree to substantial discounts if a lump-sum payment is offered rather than an installment plan. Also, if my client can prove a financial need by providing current financial documentation reflecting a lack of resources, some creditors will be more flexible.

I have encountered claims where I was able to negotiate a settlement for ten cents on the dollar as well as claims where the creditor insisted on reimbursement for all collection costs in addition to full payment of the principal amount.

However, my professional, aggressive approach to negotiations has resulted in a near 100% success rate with most settlements resulting in discounts between 20% to 80%.

In any event, the final settlement is always subject to my client’s approval and acceptance before I earn my fee.

Scott F. Soape


Scott F. Soape & Associates, LLC is NOT A LAW FIRM. No legal advice can or will be provided.

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