Legal Question in Credit and Debt Law in New Jersey

You may negotiate with them. Be aware that they will typically proceed with the lawsuit even if you are negotiating with them. If you don't answer the lawsuit, you will be in default and a judgment will likely be entered against you, despite any ongoing negotiations. You may want to consider investing the $15 court filing fee in order to file an Answer disputing the amount alleged due. That will give you more time to undertake your negotiations, and at least the matter will be opposed while you continue your efforts to settle. If you have been sued in small claims court (the docket number would begin with an SC and not a DC), then you cannot file an answer and you must appear in court on the date set forth in the summons. But again you should try to negotiate a payment arrangement. Be sure to get it in writing. If they offer you a "Consent Judgment" with a payment plan, you might consider suggesting instead that the matter be resolved by "Stipulation of Settlement" with payment plan. That way, no judgment will be entered unless you default on the payment plan.

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