Legal Question in Credit and Debt Law in California

It sounds like you might have been had by United Debt Counselors. If they were responsible to forward your payments to the creditor, then I'm not sure why the creditor has decided to sue you. Generally, there is no defense to a lawsuit on a debt simply because you cannot pay unless the loan agreement was made under fraud, undue influence, or duress, at the time you signed it but that's rare or virtually nonexistent with your typical credit card company or finance company.

So, you are free to file an Answer in the Superior Court but be aware in the LA County the filing fee for that is about $300. However, I highly recommend you hire a lawyer to do it and defend you, if there is any defense, because this is Superior Court and procedures are extremely complicated (it's not small claims) and not for amateurs. Anyone 18 and over and not a party to the lawsuit can serve the Answer on the plaintiff after it is filed in court. Usually people pay a process server company to do it ($35 or so). You might throwing money down the drain to defend yourself in a no-defense lawsuit like this. Yes, you should contact the attorney who filed the complaint and try to negotiate a settlement. Maybe there was a misunderstanding and the debt counselors company dropped the ball.

Larry L. Doan, Esq.

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Too late not to involve the courts although you may want to sue or cross-complain United Debt Counselors. Filing fee is based upon demand is the demand in the complaint less than 25K? Contact me directly.