California Debt Settlement System | Justice Foundation
Being sued by a debt buyer is not the end of the line — it is often the beginning of the best settlement opportunity on that account. Debt buyers who file lawsuits want to settle. Litigation is expensive. A defendant who responds, asserts defenses, and makes a reasonable offer frequently settles for substantially less than the claimed balance.
The 30-Day Answer Deadline
You have 30 days from service to file a written answer. A general denial preserves every right you have and costs approximately $225 in filing fees. It buys 60-90 days before a case management conference during which settlement discussions are the primary activity. Missing this deadline produces a default judgment — enabling wage garnishment, bank levies, and property liens. Simply filing your answer eliminates all of those immediate consequences.
Your Affirmative Defenses
Your answer asserts specific defenses: statute of limitations (if time-barred), lack of standing (chain of title not established), incorrect balance (inflated with unauthorized charges), FDCPA and CFDBPA violations as affirmative defenses. Each defense you assert must be litigated by the plaintiff — creating cost and burden on their side. Well-documented, specific defenses settle earlier and for less than general denials alone.
Post-Answer Settlement
After filing your answer, contact the plaintiff’s attorney and offer to discuss settlement. Most collection law firms have settlement authority and strong incentive to close cases before discovery — which is expensive for them on individual consumer accounts. An offer of 20-25 cents on the dollar made immediately after filing an answer, with documented defenses cited, frequently closes within 30 days. The Justice Foundation kit includes California superior court answer forms, defenses checklists, and post-answer settlement scripts.
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