If you’re being sued by a debt buyer like Midland Funding, Portfolio Recovery, LVNV, Cavalry, or Jefferson Capital, you’re facing a major decision:
Should you settle — or take the case to trial?
The right answer depends on leverage, documentation, and risk.
Here’s how to evaluate the decision strategically.
Step 1: Evaluate the Plaintiff’s Proof
Before deciding anything, ask:
- Do they have the original credit card agreement?
- Do they have full account statements?
- Can they prove chain of assignment?
- Is the amount accurate?
- Is the statute of limitations close?
If documentation is weak, trial risk shifts toward the plaintiff.
If documentation is strong, settlement risk increases for you.
Step 2: Understand What Trial Actually Means
Going to trial means:
- The plaintiff must prove standing.
- The plaintiff must authenticate records.
- The plaintiff must prove the amount owed.
- You can cross-examine witnesses.
- The burden is on them.
Debt buyers rely on defaults. When defendants show up prepared, cases become more expensive and unpredictable.
Step 3: Consider Your Financial Risk
If you lose at trial, the plaintiff may obtain:
- A judgment
- Wage garnishment
- Bank account levy
- Property liens
- Post-judgment interest
Judgments can last 10–20 years in many states.
If your wages are garnishable or your bank account is exposed, settlement may reduce risk.
Step 4: When Settlement Makes Sense
Settlement may be smart when:
- Documentation is strong.
- You want closure.
- The balance is manageable.
- A significant discount is offered.
- Trial costs or stress outweigh benefits.
Lump-sum settlements often secure deeper discounts than payment plans.
Step 5: When Trial May Be Strategic
Trial may be worth considering when:
- The debt buyer cannot prove chain of title.
- Key documents are missing.
- The statute of limitations is questionable.
- Affidavits rely on hearsay.
- You believe they cannot meet their burden.
Some debt buyer cases collapse under evidentiary pressure.
Step 6: Understand Leverage
You gain leverage when you:
- File an Answer.
- Demand proof.
- Conduct discovery.
- Consider arbitration.
- Request a jury trial (if strategic).
When plaintiffs believe you are prepared for trial, settlement posture often changes.
Bottom Line
Settlement is about risk management.
Trial is about proof.
The right choice depends on:
- Documentation strength
- Financial exposure
- Procedural posture
- Strategic leverage
There is no automatic answer — only calculated decisions.
