Sued for debt in California: the courts and deadlines

The amount claimed decides the track, and who is suing matters too: a company that bought the debt cannot use small claims.

Start by reading what you were handed. The courts' guide says you will receive at least two documents (California Courts Self-Help Guide, opens in a new tab), usually the summons and the complaint. The summons itself says, in English and Spanish, that the court may decide against you unless you respond within 30 days.

California asks more of companies that buy old accounts and sue on them. The complaint has to say that the plaintiff is a debt buyer and give the details of the debt (California Legislature, opens in a new tab), and the court cannot enter a default judgment unless sworn, authenticated records (California Legislature, opens in a new tab) back those details up.

Whether a complaint meets these rules, and whether the time limit has run under § 337(d) (California Legislature, opens in a new tab), are questions a lawyer will look at with you. We cannot answer them for your case.

Yes. A collector that was assigned a delinquent debt must send, free and within 30 calendar days (California Legislature, opens in a new tab) of your written request, proof that it may collect, the balance with interest and fees shown separately, the last payment date and the names of past owners.

A debt buyer collecting a charged-off account has a shorter deadline, 15 calendar days (California Legislature, opens in a new tab). If either cannot send the records in time, it must stop collecting until it does. Keep a copy of your request.

A judgment lets the creditor use court tools. It can ask the levying officer for an earnings withholding order, which takes at most 20% of disposable pay (California Legislature, opens in a new tab) and often less, or levy a bank account, where the first $2,325 (Judicial Council of California, opens in a new tab) is protected without a claim.

On a personal debt judgment under $50,000, interest runs at 5% a year (California Legislature, opens in a new tab) for judgments entered from 2023, not the usual 10%.

Settling is still possible, but a settlement has to be agreed with the plaintiff and put in writing, and until then the court deadlines still run. A settlement company cannot pause a lawsuit that has already been filed.

If you work with one, California requires it to forward any lawsuit notice (California Legislature, opens in a new tab) on an enrolled debt to you right away. The response is still yours to file.