Getting sued by Midland Funding is scary. One day your mailbox is empty; the next, you are holding a Summons that says you are being taken to court.
Take a deep breath. You are not powerless here.
Midland Funding is one of the largest debt buyers in the country. They buy old credit card accounts from banks like Chase or Capital One for pennies on the dollar. Because they bought your debt so cheaply, they are often willing to settle for less than the full amount. But they won’t do it if you ignore them.
Here is the truth: You can resolve this. You just need a plan.
Create your court-approved Answer in 15 minutes with DebtAegis
The Golden Rule: Don’t Ignore the Lawsuit
The biggest mistake people make is doing nothing. They hope Midland Funding will go away. They won’t.
If you do not file a legal response (called an “Answer”) with the court by the deadline, Midland Funding wins automatically. This is called a default judgment. Once they have that judgment, they can garnish your wages or freeze your bank account. You lose your leverage to negotiate.
To settle this debt, you must keep the fight alive. Filing an Answer prevents them from winning by default and forces them to come to the table.
How to Negotiate a Settlement (3 Steps)
Settling simply means paying a portion of the debt to satisfy the whole account. Midland Funding wants money, not a long court battle. Use that to your advantage.
1. File Your Answer First
Before you offer them a dime, file your Answer. This tells the court—and Midland—that you are fighting back. It buys you time and leverage.
You do not need a lawyer to do this. We can help you generate a court-ready Answer document quickly.
Note: Filing an Answer does not mean you have to go to trial. It just keeps you in the game so you can negotiate safely.
2. Calculate Your Offer
Once your Answer is filed, look at your budget. How much can you realistically pay?
- Start Low: Midland buys debt for very little (sometimes 4% of the face value). They have a high profit margin. Start your negotiations by offering 50% of the total debt.
- Expect a Counter: They will likely say no and ask for more. This is normal. You might go back and forth a few times.
- Be Honest: If you cannot afford a lump sum, explain your situation. You might be able to set up a payment plan, though lump sums usually get you a better discount.
3. Get It in Writing
Never send money based on a phone call.
If you reach an agreement, demand a written document stating that this payment satisfies the debt in full. Midland Funding should draft this and file it with the court to dismiss the case. Having it in writing protects you if they ever try to collect on this debt again.
Ready to End the Stress?
The first step to a settlement is blocking the default judgment. Do not let the deadline pass.