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Can I Settle My Debt Collection Lawsuit?

If you’ve been sued by a debt collection agency in California, you generally have two choices: fight the lawsuit or attempt to settle. Whether or not you can settle your debt collection lawsuit depends on many factors, including the size of the alleged debt, the willingness of the debt collector to compromise, and your ability to pay. Below are some steps to take when pursuing a debt collection lawsuit settlement in California. For additional information, please contact a debt collection lawsuit defense attorney

Pay Attention to Deadlines

After being served with a debt collection lawsuit, you must file an answer to the lawsuit within a specific period of time. If you fail to file an answer, the debt collector will file for a default judgement. Once the default judgment is in place, the debt collector will be unlikely to accept a settlement. Therefore, even if you want to pursue a settlement, you must remain cognizant of all case-related deadlines.

Determine Your Defenses 

Before attempting to negotiate a settlement, you should determine your defenses. The stronger your defenses, the more likely the debt collector will be to settle. By reviewing the lawsuit, you and your debt collection lawsuit defense attorney can draft a list of defenses that will be helpful when attempting to negotiate the debt.

Review Your Finances

If the debt collector’s lawsuit against you succeeds, what do you stand to lose? This is a question you should ask yourself before you attempt to settle your debt collection lawsuit. If you are currently employed, then you should calculate how much the debt collector will be able to take from you via a wage garnishment action. If this amount is minimal, then you may decide to accept the judgment. However, if a wage garnishment will have a significant effect on your finances, then you should consider pursuing a settlement. Of course, if you have strong defenses to the lawsuit, you should consider fighting the lawsuit in court. 

Make a Reasonable Offer

An unreasonably low settlement offer is unlikely to succeed. Therefore, you must ensure that any settlement offer you make is reasonable. Your debt collection lawsuit defense attorney can assist you in determining this amount. 

Remain Prepared to Fight the Lawsuit

Settling with a debt collector isn’t always possible. Therefore, even when making a settlement offer, you should remain prepared to fight the lawsuit in court. 

Contact a Debt Collection Lawsuit Defense Attorney 

Finally, to successfully settle a California debt collection lawsuit, you should contact an experienced debt collection lawsuit defense attorney. A California debt collection lawsuit defense attorney will pursue your settlement goals while standing ready to go to trial. At the Fullman Firm, we have over 40 years of combined debt collection lawsuit defense experience. When you choose us to represent you in your California debt collection lawsuit case, we will explore all available options and work with you to develop the most effective legal strategy possible. Please contact us today to schedule a consultation.