Should I Make Payment Arrangement Instead of Going to Court

Question: Can I ask to make payments and not go to court if I’m being sued by debt collector for a credit card? I’ am being sued by a law firm representing a credit company. Is there any way I can ask to make payments with them without having to go to court about it. Should I call the collection agency or the law firm about it? If we agree on payments do I still need to file with the court within the time stated on the summons?

Answer: Your must follow the instructions on the summons and appear if you do not want a judgment entered against you. It is worth your while not to have a judgment entered against you.

If the party suing you is a debt buyer, they may not be able to prove anything, including their ownership of the debt and the amount owed.

If you are being sued by an original creditor, they are more likely to be able to prove a case, but it is still worth your while not to have a judgment entered against you.

If you do agree to a settlement, the terms should be clear and documented in writing: how many payments of what amount are necessary to settle; do you have to pay accruing interest; is a judgment being entered (not desirable) or is the case being dismissed with leave to reinstate if you don’t make the settlement payments (more desirable).