How to Negotiate with Debt Collectors with Yale Levy

Navigating debt collection in 2025 doesn’t have to be a nightmare. In this episode, we’re joined by Yale Levy, a former debt collection attorney with over 20 years of experience who now works with Solo, the platform helping people respond to lawsuits and negotiate settlements. Yale breaks down what most people get wrong about debt collection—and how simple communication can save you thousands.Collectors typically settle for 70–90% of the original debt, but ignoring them can cost you up to 150% once interest, court costs, and legal fees pile on. Whether you're facing a lawsuit or just dreading the next collector call, Yale explains why negotiating—rather than avoiding—is key to protecting your finances.He also clears up common misconceptions, including why the “never pay your debts” advice circulating online is dangerously misleading. We also dig into real strategies for negotiating: from calling collectors directly to using tools like SoloSettle to communicate digitally—no phone calls or awkward conversations required. Yale shares a real-life example of a woman who settled a $15,000 lawsuit for $10,500, avoiding judgment and extra fees. He also outlines what happens after you settle, including how it impacts your credit report and what to expect during tax season if the forgiven debt exceeds $600. If you're sued in a state where you don’t live, he explains how to push back with a motion to dismiss. Throughout the conversation, Yale reminds listeners that debt doesn’t define them—but how they respond to it does. Whether you’re overwhelmed, confused, or just ready to take action, this episode offers practical, calm advice from someone who’s seen it all from both sides of the table.To submit a question to The Debt Hotline, you can: - Call 801-613-8181 and leave a voicemail - Fill out this form: https://forms.gle/28gd4XFsq6ybN4Qu8- Send an email to [email protected] https://www.solosuit.com/?utm=podcast