Legal Question in Credit and Debt Law in California

payment arrangements before judgement

I recieved a summons for a debt from credit debt attorney representing household finance. I called household finance and gave them a payment for $500 to stop from charging off.they told me to contact the debt attorney to make argmnts on the bal. I called them and set up to pay $261 every month. they told me that would be fine, however they wanted to inform me that they wud still have to enter a judgement thru the courts to secure the debt. So I asked them for a letter of the argmnts we set up.they told me they would but would add argmnts based on stipulation of entering a judgement. so we argued and we both hung up on each other. What are my rights, can they do that??


Asked on 6/01/06, 9:30 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: payment arrangements before judgement

The creditor is under no obligation to reach a payment plan with you. You breached the contract and that's why they sued you. A stipulated judgment with a repayment plan is a common method of settling debt collection cases. Unless you file a response to the lawsuit, they can get a default judgment. You are better off negotiating directly with the attorney and getting the settlement plan in writing.

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Answered on 6/01/06, 10:14 pm


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