If you settle your caseby paying part or all of the debt
You may settle your case at any time prior to having the court make a decision (a judgment)by either:
- Paying the full amount of the debt (plus any fees, costs, and interest required)
- Negotiating to pay alesser amount and having the other side agree to accept that amount as full payment
Like any other agreement you negotiate, this agreement should be confirmed in writing.
If a creditor has an attorney, all communications, negotiations, and payment must go through the attorney's office (unless you have instructions to do otherwise.)
Have the Plaintiff dismiss the case
Your case won't be dismissed automatically if you settle. The Plaintiff shoulddismiss the case as part of your agreement.
As part of your agreement, you should have the other side agree to dismiss the lawsuit it has filed with prejudice. This legal term is an important part of your agreement because it means that the Plaintiff can't file another lawsuit against you for the same debt.
Once you've completed a writtenagreement and you've paid the amount you agreed on, the Plaintiff should dismiss the case andserve you with a copy of the Request for Dismissal (form CIV-110) before itfiles that form with the court. Alternatively, the Plaintiff may file a Notice of Settlement of Entire Case(form CM-200) and file the dismissal within 45 days.
Settling after a judgment
If instead you pay or settle after a judge makes a decision in a trial (after a judgment is entered), you should still confirm the arrangement in writing, and the Plaintiff should issue an Acknowledgment of Satisfaction of Judgment (typicallyform EJ-100). The plaintiff will either file a copy of this form with the court or will send you a notarized copy of this form.
If you agree to make payments over time
If you agree to settle a lawsuit by making payments over time, there are several ways that you and the Plaintiff might handle the agreement to pay overtime:
- Draft a new contract and dismiss the case
You and the plaintiff could draft a new contract describing your agreement for making payments and thendismiss the case. If you break the contract, the plaintiff can file a new lawsuit. - Draft a settlement agreement and conditionally dismiss the case
You and the Plaintiff draft an agreement that says thecase will be dismissed, and you will make payments over time. If you break theagreement, the plaintiff can ask that the dismissal be vacated(canceled) and the case continue. - Draft a stipulated judgment
You and the plaintiff draft an agreement that says the court will order you to pay the specific amount (orenter a judgment against you). But that the plaintiff will not enforce the judgment as long as you make monthly payments. If you don't make monthly payments, the plaintiff can ask the judge to order you to pay the full amount minus payments you've made and may seek to collect.
Go back to review your options
FAQs
Option 3: Pay the debt and get the case dismissed
How to get a debt lawsuit dismissed in California? ›
If you agree to make payments over time
- Draft a new contract and dismiss the case. You and the plaintiff could draft a new contract describing your agreement for making payments and then dismiss the case. ...
- Draft a settlement agreement and conditionally dismiss the case. ...
- Draft a stipulated judgment.
Dismissals Before Trial
If the credit card company or debt collector does hand over the documents, we can sometimes get them to dismiss the case by pointing out errors in their paperwork. Your case can also be dismissed when the credit card company does not actively pursue their claim against you.
What is a voluntary dismissal of debt collection? ›
The debt collector is preemptively ending the lawsuit. Like with nonsuits, voluntary dismissals by the plaintiff can be either: Without prejudice (they reserve the right to re-file later) With prejudice (the case is permanently terminated)
What is the new law for debt collection in California? ›
California Coerced Debt: California SB 975, for debts incurred after July 1, 2023, requires a collector to cease collection until it completes a review when the debtor provides documentation and a sworn statement that the debt was coerced. A person who coerces a debt is civilly liable.
How do I dismiss a case in California? ›
Note: Your court's self-help center may be able to help you.
- Fill out your court forms. ...
- File your forms at the courthouse where you filed your case. ...
- Serve the other side with a copy of the dismissal papers. ...
- File the Notice of Entry of Dismissal and Proof of Service (Form CIV-120)
The following guidelines can help you settle out of court and reach creative, mutually beneficial resolutions to your disputes, with or without lawyers at the table.
- Make sure the process is perceived to be fair. ...
- Identify interests and tradeoffs. ...
- Insist on decision analysis. ...
- Reduce discovery costs.
Clearly Stating Your Request
State clearly in the body of the letter that you are requesting a dismissal. Provide all necessary details surrounding your request, including the legal reasons for the dismissal, and any supporting documents.
What is the affirmative defense for debt collection? ›
Summary: An affirmative defense is a legal defense that a defendant uses to prove they are not liable. In a debt collection lawsuit, an affirmative defense is any legal reason that the defendant should not be held responsible for the debt.
What is a request for dismissal? ›
A motion to dismiss is a formal request for a court to dismiss a case. The reasons for a dismissal vary greatly. Settlement: Approximately 95% of civil cases reach settlements at some stage (can be before, after, or during the trial).
Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal ...
How to get out of collections without paying? ›
You cannot remove collections from your credit report without paying if the information is accurate, but a collection account will fall off your credit report after 7 years whether you pay the balance or not.
How do I get rid of debt collectors without paying? ›
You can sue the debt collector for violating the FDCPA. If you sue under the FDCPA and win, the debt collector must generally pay your attorney's fees and may also have to pay you damages. If you're having trouble with debt collection, you can submit a complaint with the CFPB.
What is the Rosenthal Act in California? ›
The California statute is called the Rosenthal Fair Debt Collection Practices Act. Creditors and debt collection agencies are permitted to take reasonable steps to enforce and collect payment of debts. That is because an efficient and productive economy requires a credit process.
What is California debt relief? ›
CaliforniaDebtRelief.org assists individuals, families, and businesses with education and resources to understand and access debt consolidation options.
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
How do I defend my debt from a lawsuit? ›
Defenses you can use in a debt lawsuit
- Defense: Running the statute of limitations. The plaintiff must file a lawsuit within a set amount of time. ...
- Breach of contract by Plaintiff. ...
- No breach by Defendant. ...
- Discharge by bankruptcy. ...
- Statute of frauds. ...
- Satisfaction. ...
- Cancelation of contract. ...
- Lack of Consideration.
You must fill out an Answer, serve the other side's attorney, and file your Answer form with the court within 30 days. If you don't, the creditor can ask for a default. If there's a default, the court won't let you file an Answer and can decide the case without you.
On what grounds can a civil case be dismissed in California? ›
Motions to dismiss are filed for a range of reasons, which may include: Statute of limitations expiration: The case does not fall within California's time limit for filing. Lack of subject matter jurisdiction: The court does not have the authority to hear this type of case.
What happens if you lose a lawsuit and can't pay in California? ›
If you do not pay the judgment, the judgment creditor can garnish or "seize" your property. The judgment creditor can get an order that tells the Sheriff to take your personal property, like the money in your bank account or your car, to pay the judgment.
