What if the creditor refuses to settle the debt?

If a creditor refuses to settle the debt, then the debtor will need to explore other legal options. In Nebraska, the debtor can file a lawsuit against the creditor. This is known as a civil collection lawsuit. The debtor will need to prove that the creditor owes them the money, and provide sufficient evidence in the form of documents, records, and testimony to support their claim. The debtor can also file a complaint with the Nebraska Department of Banking and Finance and/or their respective county attorney for cases involving debt collection violations. This may be the better option if the debt amount is small relative to what it cost to file a lawsuit. In addition, if the creditor continues to refuse to settle the debt, the debtor can involve a credit counseling agency or a third-party debt settlement company. These companies can negotiate with the creditor on the debtor’s behalf. They may be able to get the creditor to agree to a reduced amount or a payment plan. If all else fails, the debtor can consider filing for bankruptcy. This should be a last resort, as it will have a tremendous impact on the debtor’s credit rating. Filing for bankruptcy will also have a massive impact on the debtor’s ability to borrow money in the future.

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What if the creditor refuses to settle the debt?

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