Hi,
Today my Mom receieved a summons from a credit card collector suing
for approximately $5,000. To give a brief background she lost her job
and had to move in with family. In the meantime the debts stacked up
and she got behind. She has successfully paid off 4 smaller credit
cards in the last few months. I have been gladly taking care of her
but I/we have been unable to get all the debts.

I know they don't have to accept a settlement. Now, my question is if
I am willing to pay the full amount before the court date will the case be
dismissed/cancelled before the court date?

I would really, really appreciate any help as I'd do anything to help my Mom.
Thanks so much,
Tricia

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Clarification of Question by chasingmedown-ga on 12 Apr 2004 10:05 PDT

I am in California. Yes, that helps very much. Thanks alot.

Dear chasingmedown-ga;

Thank you for allowing me an opportunity to answer your interesting question.

You can, in most cases, pay the full amount being requested by the
creditor prior to the hearing in order to avoid a judgment, expensive
court costs and unnecessary interest. In fact, the California Small
Claims Court highly recommends this provided you are in agreement with
the amount being sought by the creditor.

CALIFORNIA DEPARTMENT OF CONSUMER AFFAIRS
http://www.dca.ca.gov/legal/small_claims/basic_info.htm#settle

Now this ?is? referred to and considered, for all intents and
purposes, as ?settlement? and although you say your creditor does not
accept settlements, the court will undoubtedly see otherwise. It is
important to note that while the creditor?s policy may be that they do
not settle unpaid debts with customers by accepting less than the full
amount or by accepting artial payments, the court will have no choice
but to dismiss the claim once the debt is paid IN FULL, thereby
rendering the claim a moot point. It is also possible that the court
might admonish the creditor for unnecessarily using the court system
to penalize you beyond the payments to which they are entitled.

It is not for the creditor to decide HOW you should be penalized (i.e.
?forcing? you against your will to have to endure a costly lawsuit
even if you are willing to pay the debt), and small claims courts are
designed to render a "judgement", not "punishment". Therefore it is
not up to the creditor whether or not you can settle the claim ?
especially for the full amount or whether you should be made to suffer
penalties other than the monetary debt.

The no-settlement policy that many companies have simply means that
they will not negotiate partial payment plans, time-payment options,
or other side-agreements to satisfy the debt. Having said that, you
will most likely be allowed to pay the debt prior to the hearing by
speaking with someone higher in the financial chain than whom you have
been talking to, or at the very least by appearing at the hearing and
showing the court a cashier?s check in the full amount and explaining
your willingness all along to pay the debt and how you were denied
that opportunity.

I would think (in my opinion, outside of the legal profession) that
the creditor?s refusal to accept the full amount of the debt could
certainly be construed as a form of harassment and undue hardship. In
the end, I sure the court will find very little humor in this
creditor?s determination to enter into an unnecessary litigation at
the cost of the taxpayers.

Each county is required to have a Small Claims Legal Advisor to give
free advice. The kinds of services offered vary from county to county.
The court clerk's office may also be interested to know that you are
willing to settle for the full amount and that the creditor is
unwilling to accept it. Just explain that you are ?wanting to pay? but
the creditor is not allowing you to and ask them how to go about
paying the full debt prior to the hearing.
 
In addition, the Department of Consumer Affairs offers an information
booklet about small claims court procedures (Department of Consumer
Affairs, P.O. Box 310, Sacramento, CA 95802; tel. 916-445-1254). They
may also be able to tell you how to go about making this full debt
payment and avoiding the hearing in spite of the creditor?s
unwillingness to cooperate.

If this fails, I recommend you contact the California Attorney
General?s Office and tell them what you?ve told us. No doubt they will
not be amused either.

CALIFORNIA ATTORNEY GENERAL OFFICE
http://caag.state.ca.us/




I hope you find that my research exceeds your expectations. If you
have any questions about my research please post a clarification
request prior to rating the answer. Otherwise I welcome your rating
and your final comments and I look forward to working with you again
in the near future. Thank you for bringing your question to us.

Best regards;
Tutuzdad-ga ? Google Answers Researcher



INFORMATION SOURCES

CALIFORNIA DEPARTMENT OF CONSUMER AFFAIRS
http://www.dca.ca.gov/legal/small_claims/basic_info.htm#settle

SETTLING PERSONAL DISPUTES
http://www.lectlaw.com/files/crs08.htm

CALIFORNIA ATTORNEY GENERAL OFFICE
http://caag.state.ca.us/


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Debt

Small claims

California

Out of court

Settlement

Creditors

Thank you for all your help. I took the information you gave me and
called. They decided to work with me. I will be able to pay this off
for my Mom and the case is going to be dismissed. I appreciate your
quick responses.

This is usually the case.

Where do you live?

Yes, you can settle before the date.  In fact, if you are content with
the amount ($5k?), it would be in your best interest to settle before
both parties incur court costs & court records are generated (i.e,
Sued for $5,000 successfully vs. "sued for $5,000 but case was settled
prior to court date".

Or, think about it this way:  If you were suing someone for $5k and
they ultimately decided to pay you, would you take the money sooner? 
Of course!

As far as the court's time is concerned, the more cases that can be
settled out of court, the better.  Courts are usually backed up with
lots of cases.

Hope this helps!