Can I settle a debt collection case in court?
In California, it is possible to settle a debt collection case in court. Depending on the circumstances, the debt collector may offer you a settlement based on the amount of the debt owed. In some cases, the collection agency may agree to accept a lower amount in full satisfaction of the debt. In other cases, the collector may offer a “payment plan” to pay the debt over time. If the debt collection agency does not offer you a settlement or payment plan, you can seek a court order that allows you to pay the debt over a term of months or years. This requires filing a lawsuit against the collection agency in civil court and presenting a plan to the judge that outlines the specific payment terms you’re asking for. The court may also hear arguments and consider evidence from the collection agency before deciding whether to approve your proposed payment plan. If the court approves the payment plan, you must abide by the terms and make all of the payments on time. If you fail to make payments, the collection agency may seek a judgment against you that requires you to pay the remaining balance of the debt. Because debt collection cases can be difficult and complex, it is important to seek the advice of an experienced attorney before entering court. An attorney can provide legal advice about your rights and options under California’s collection defense law.
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