Legal Question in Credit and Debt Law in California

It's time to evaluate the case for a lawsuit. Is the debtor collectible. Is there a written contract. Etc

You are probably more likely to get your highest net recovery, though still pennies on the dollar, turning it over to a collection agency. Unless you have written agreement that the loser in litigation will pay the other side's attorneys fees, AND you are SURE that they won't just file bankruptcy or otherwise make a judgement uncollectable, you are wasting your money suing over such a relatively small amount. If they really seriously fight it, they can easily cost you almost the full amount of the debt in attorneys fees unless the fees will be paid by them. Collections is the way to go.