Table of Contents



Negotiation is Simple

What You Want and What They Want

Should You Negotiate Yourself? Or Use a Service?

The “Advantages” of Debt Settlement Companies

The Point of Diminishing Returns and Debt Settlement

The Advantage of Doing it Yourself

Why Look to Your Legal Leg Up?

Negotiations Take Place in the Shadow of the Law

Unpaid and Unsettled Debts often End in Litigation

We Have Much Experience in Negotiation

Organization of this Book

Table of Contents

Chapter One – Negotiating Tips

About “Practice” in General

The Tips

Chapter Two – Negotiation Basics

Why and How to Negotiate at All


Get Over It

Some Caution is Needed

Positive Thinking

Five Factors

Risk or the Stakes Involved

The Amount of Harm for the Debtor

Increase Your Perspective

Chance of Losing





The Five Factors, in Conclusion

Chapter Three – The Risks and Benefits of Negotiation

Negotiation Requires Communication

A Risk You May Not Be Taking Seriously Enough

Two Deals Compared

Asymmetries in Debt Negotiations

Chapter Four – Creating a Plan for Negotiation

Why Not Just Wing It?


The Underlying Factors

What You Have

What You Can, or Cannot, Afford to Give Up

What You Might Lose in a Worst-Case Scenario

Consider Your Realistic Alternatives

Sale of Security

A Second Job


Other Outside the Box Solutions

What You Want and Need to Achieve through Negotiations

Staging the Negotiation

Know the Status of the Debt and Your Counterparty

What Your Strengths Are

What Your Weaknesses Are

Chapter Five – “Posture” in Negotiations

Staying Power

Four Ways to Build Your Staying Power

Strong Enough

Rich Enough

Poor Enough




Use of Time

Chapter 6 – General Definitions and Counter-party Status When Negotiating Debt


Not Always Clear

Negotiating Authority

Negotiating Strategies

Understanding the Legal Status of the Companies

Original Creditors

Collector Behavior

Defenses to the Debt

Make the Call

A Word about Collection Calls from Credit Cards

Actual Debt Collectors

Debt Collector Behavior

Debt Buyers

Chapter Seven – Negotiating with Specific Original Creditors

What Kind of Business

Credit Cards

Getting Help

More Help
Stop Paying?

They Have Information

Is It Wrong to Negotiate?

The Steps

Should You Get It In Writing?

Credit Report

Student Loan Collectors

Some Types of Help for Student Loans

Negotiating Student Loans with Debt Collectors

Governments and Taxes

Small Businesses

Medium to Large Corporations

Negotiating with Banks on Mortgages
Two Types of Debts

Negotiating with Car Dealerships

Chapter Eight – Negotiating with Debt Buyers in General

Preliminary Issues

Verification and Proof of Ownership of the Debt

Liability for the Debt

Statutes of Limitation

Agency Abiding by Regulatory Responsibilities

Reasons to Negotiate with Debt Collectors

Negotiating with Debt Buyers

Communicating with Debt Buyers

What to Say

What to Negotiate

Chapter 9 – Making the Agreement


Appendix 1 – Case Study: Two Deals Compared

The First Deal

The Second Deal

Compare the Results

Appendix 2 – Tax Consequences of Debt Settlement

The Law Is Not Clear

What is Form 1099-C

When is a Creditor Required to File?

What Information is Included


Appendix 3 – Rules for Debt Collectors

Federal Fair Debt Collection Practices Act Rules

Prohibited Conduct by Debt Collectors

Required Conduct by a Collection Agency

Appendix 4 – State Collection Agency Registration Requirements

States Requiring Licensing, Registration, Exam, and/or Bond

States Requiring Licensing

States with No Bond Requirements

Appendix 5 – Sample Negotiation Plan

Appendix 6 – Exemptions from Collection in Missouri (an example)

Appendix 7 – Tracking Forms for Debt Collection

Sample Form with information

Sample Form

Appendix 8 – Sample Settlement ProposalS and Agreement

Form Settlement Proposal

Form Settlement Proposal (1)

Settlement Template Form Settlement