Legal Question in Credit and Debt Law in California

Can a person who gave a personal loan to someone, sue them for non-payment even though they've been paying some portion of the payments due sue the borrower? Can they get a judgement against them without the borrower having a chance to a day in court in thier defence, and garnish their wages? Loan was from US to Canada. Is there a possible way to prevent a lawsuit or can the borrower who made all attempts to work things out counter-sue the lende?


Asked on 10/05/10, 6:25 am

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

It depends on the agreement(s). If the lender agreed to forego enforcing the entire debt in exchange for periodic payments, then the lender should be estopped from enforcing the entire debt. In CA, wages cannot be garnished unless there first is a judgment against the defendant. The lawsuit first must be served on the defendant, and the defendant then has 30 days to file a responsive pleading, including an answer, motion to strike, and/or a demurrer.

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Answered on 10/10/10, 12:15 pm


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