Legal Question in Bankruptcy in California

Your case already is IN court. You can try to settle it early, file your answer, try to settle later, file for bankruptcy, or just ignore it at your financial peril. Some creditors might agree that, if you make regular payments, they would not seek judgment against you. Others would require entry of judgment now and, if you fail to make an agreed payment, then it would start to execute on the judgment by levying on your bank account or attaching your wages.