Legal Question in Credit and Debt Law in California

Re: Summons/Payments arranges/response

Speaking to the law firm that is suing you and setting up a payment plan may have been a huge, massive mistake on your part. If the debt was over 4 years old, by agreeing to make payments you may have just made yourself liable again for a debt that was no longer legally collectible. If the lawsuit is from a collection agemcy, they may not really own the debt -- you should have sent them a validation letter -- and they might not be able to prove they have the right to sue on the debt. Next time you need legal advice, don't get it from the other side's lawyer. They are not there to help you.

Re: Summons/Payments arranges/response

Excuse me for not answering your original question. About this "payment plan" you "set up"? Have they agreed in writing to drop the lawsuit? If not, you may find they will go ahead and file a default judgment no matter what they told you over the phone they would agree to. So yes, you need to respond to the complaint within 30 days of the date you received it.

Re: Summons/Payments arranges/response

Yes, most definitely yes. You need to respond to the summons. The lawyer is playing you for a fool. Let me guess. He probably told you something like this: "Don't worry about it. I do not want you to be the slightest bit concerned. I will take care of everything for you. You just go ahead and make any payments that would be convenient for you." These words are legal terms of art that have a precise legal meaning, known only by lawyers. Translated into colloquial language, these words mean: "I am going to get a default judgment against you, attach your wages, empty out your bank account, add costs and attorney fees to the judgement, and put a lien on your home."