Tips After Sending Your Settlement Letter
The other party sued you for money and you have sent a settlement letter, what now? First, be sure you keep a copy of the settlement letter that you sent because you may want to use it as evidence in court.
Give some time for the other party to respond
After sending your settlement letter, don’t expect an immediate response from the other party because it may take some time for them to receive your letter based on the mail delivery method that you select.
The best way to send your settlement letter is via USPS certified mail because the other party cannot argue that they never received the letter. However, it can take certified mail several days to several weeks to reach the expected recipient, because the certified mail process requires the recipient to confirm that they are either the recipient of the letter or that the recipient resides at the location of the delivery address.
- If the recipient is not home at the time of the initial delivery, USPS will leave a notice asking them to 1) pick up the mail at the local USPS office, or 2) sign the notice to have USPS redeliver the mail. This entire process ensures that the certified mail is delivered to the intended recipient, but can take some time depending on the recipient's availability.
- If the delivery address is a PO Box, the mail will be left at the PO Box for the recipient to pick up. The delivery of the mail is then dependent on when the recipient chooses to pick up the mail from the PO Box.
- In rare instances, USPS may also experience mail delivery delays due to weather, holidays, and other extenuating circumstances.
Alternatively, if you sent your settlement letter electronically, the delivery of the letter will be dependent on the email service selected and how often the recipient checks their email inbox. It is also possible that the recipient has filters set up in their mailbox and may not see the electronic message with the settlement letter at all.
Negotiate the terms of the settlement letter
While you are waiting for the other party to receive your letter, it is a good idea to start thinking about how they might respond. Be prepared for the other party to contact you soon after they receive your settlement letter to negotiate, or to counter with their terms. Consider what you think their response will be, and think about how flexible you will be to settle the matter.
Depending on what they offer, you will want to decide whether it is something you are willing to accept to avoid having to go to court. Think about whether you believe you owe them any money to help you decide whether to accept their terms or defend yourself in court.
Follow up and let them know you will defend yourself in court
If you don't believe you owe any money:
- Remind the other party you have proof to show the judge that you don't owe them any money. If they do decide to take the case to court, you will present that proof to the judge and the court will rule in your favor so it's best if they dismiss the case.
If you do agree you owe money but, believe you owe less than they claim:
- Remind the other party you have proof to show the judge why you only owe a certain amount. If they do decide to take the case to court, you will present the proof to the judge and the court will rule in your favor so it's best they settle the case out of court to save time.
If you agree you owe the money in full but want to make payments:
- Remind the Plaintiff you have proof to show the judge why you should be granted the right to repay in payments. Many courts have payment plans available if you are unable to pay in full. If they do decide to take the case to court, you will present proof to the judge and the court will rule in your favor by granting you the payment plan so it's best they settle the case out of court to save time.
Go to court ready
Finally, if you don’t settle the case out of court because either the Plaintiff never responds, rejects your offer, or does not dismiss the case, you will need to go to the court hearing. Continue to prepare for your hearing so that you are ready to defend yourself in court.