If you pay off your debt or negotiate an agreement with the debt collector to pay a lesser amount before going to trial, you can settle your case and have it dismissed. But be aware that your case won't be dismissed automatically if you settle. Make sure the Plaintiff dismisses the case.
A motion to dismiss is a formal request by a party to the court to dismiss a case. This pretrial motion is often filed before a criminal or civil case begins. Often, the defendant files this type of motion shortly after receiving the complaint and before engaging in further legal proceedings.
Creditors and debt collectors have to spend money to file a lawsuit, so it's better to negotiate with them before you've been sued and resolve the debt outside of court. Your chances of settling for less are better if you haven't been sued, but even if you have been sued, there's still a chance.
You will only get the debt dismissed with prejudice by a court order. To get a court order the case must be in court. So until either you or they refile in court dismissal without prejudice is impossible. A request for verification does not get the debt dismissed with prejudice.
You Lose: If the credit card or debt collection company wins, it will ask the judge for authority to collect its money. Your wages could be garnished. Liens could be placed on your property or forced into a sale.
Ask the judge to set aside (cancel) the judgment
Setting aside the default requires filing a motion. This is complicated and most people need assistance from a legal expert to do it correctly. Contact your local legal aid, county law library, court's Self-Help Center to see if they help.
The plaintiff might attempt wage garnishment or bank account levies. Some defendants might be considered “judgment proof” if they have no assets. Possible Outcomes and Future Collection: Judgments remain active for several years and could be renewed.
Settlements provide a predictable outcome and help avoid the risks associated with unpredictable jury decisions. They also ensure privacy for the involved parties and maintain relationships by avoiding the adversarial nature of trials.
A motion to dismiss is a legal argument asking the court to throw out the case before it goes to trial. If successful, the lawsuit will be dismissed, and you won't be liable for the debt.
The denial of a motion to dismiss necessarily makes it more likely that the case will settle go to trial, as the granting of a motion to dismiss makes a trial impossible absent decision to reconsider the dismissal or a reversal of the dismissal on appeal.
A motion to dismiss will be final only if the plaintiff chooses not to amend and proceed, or if the pleading defect is one that cannot be overcome. A motion for summary judgment is another way to ask for a pretrial resolution of a case.
More frequently than most consumers probably realize. While precise statistics are difficult to come by, legal experts estimate that several million debt collection lawsuits get filed across the United States every single year.
While it's highly improbable that a credit card issuer would completely erase your debt outside of bankruptcy proceedings, you might have the option to negotiate with your creditors for a partial reduction of your outstanding balance.
While settlements offer speed, reduced costs, and predictability, trials can provide potentially higher compensation, public accountability, and the chance to establish legal precedent. Ultimately, the right choice for your personal injury claim depends on your unique situation and goals.
The courts and almost all attorneys strongly encourage settlement. In fact, most civil cases are settled. Even criminal cases are settled, although they call those settlements “plea bargains.”
While each case is unique, insurance companies generally want to settle out of court. Going to court can be expensive and may lead to an insurance company's large award to the plaintiff. Therefore, insurance companies most often settle cases rather than go to trial.
Here's the good news — you can't go to jail for credit card debt, and if a debt collector implies that you might end up in jail, they are breaking the law as established by the Fair Debt Collection Practices Act.
If you're sued, you can choose to do nothing. This means that you do not file any response by the deadline. The Plaintiff then can ask the judge to decide the case without your input. This is called a default or a default judgment.
A long time ago, it was legal for people to go to jail over unpaid debts. Fortunately, debtors' prisons were outlawed by Congress in 1833. As a result, you can't go to jail for owing unpaid debts anymore.
If you owe money to a credit card company, for example, they must first receive a judgment against you in court before they can freeze your bank account. This means that they have to serve you with papers notifying you that they are suing you.
If you own a home, and have fallen behind on your credit cards or other unsecured debts you may be worried about what these creditors can do to collect on the debt. In many states, including California, unsecured creditors can become secured creditors and place a lien on your home.