Most collection lawsuits in Los Angeles are filed by debt buyers and collection law firms on credit card, personal loan, medical, and auto deficiency accounts. They are filed by the thousands, and the business model depends on one fact: most people never respond. The court then enters a default judgment, and the creditor collects it from your paycheck or your bank account for years.
A defended case is different. The plaintiff has to prove it owns the debt, that the amount is right, and that it sued in time. Debt buyers often cannot. Cases that are defended are frequently dismissed or settled for a fraction of the amount claimed, and a garnishment that has already started can usually be reduced or stopped.
Attorney Gregory Grigoryants has defended collection cases in the Los Angeles Superior Court for more than thirteen years, from the first collection letter through the garnishment hearing. He handles each case himself, and he and his staff speak English and Russian.
Collection Calls and Letters
Before any lawsuit: knowing what collectors may and may not do, and using it.
Third-party collectors and debt buyers are governed by the federal Fair Debt Collection Practices Act. California’s Rosenthal Act goes further and covers original creditors too. Together they prohibit calls at unreasonable hours, contact at work after being told to stop, threats of action the collector cannot take, false statements about the amount or the legal status of a debt, and contact after you have asked in writing that it stop. Since 2022, most collectors and debt buyers also need a California license to collect here.
Violations matter for two reasons. They can support a claim for actual damages, statutory damages of up to $1,000 under federal law plus a California penalty for willful conduct, and attorney fees paid by the collector. And when the same collector later sues you, those violations change the negotiation. Our guide to collector violations lists the rules in detail.
- Keep every letter and its envelope. The dates matter for the statute of limitations.
- Request validation in writing within 30 days of the first notice. The collector must then show what it claims.
- Do not make a small “good faith” payment on an old debt without advice. On a debt that is still within the limitations period, a payment can restart the clock.
- Keep a log of calls: date, time, number, what was said.
Served With a Lawsuit
Responding on time, and making the plaintiff prove its case.
You generally have 30 days from the date you were served to file a written response with the court. Most collection suits are filed as limited civil cases in the Superior Court, the category for claims up to $35,000, with simpler procedures and a cap on discovery. The papers tell us who is suing, what they claim to hold, and whether service was proper.
The response we file is an answer that denies the allegations and raises every available affirmative defense. Filing it accomplishes three things at once: it prevents a default, it forces the plaintiff to prove the account with real evidence rather than a summary printout, and it puts us in a position to negotiate from strength or to try the case. Our guide to being sued by a debt collector walks through the papers stage by stage.
If the 30 days have already passed, call anyway. A default that has been requested but not yet entered can sometimes be headed off, and a default judgment can sometimes be set aside. Both are covered under Judgments below.
The Defenses We Raise
Every case is different, but four defenses do most of the work in collection cases.
- The statute of limitations. In California, a lawsuit on a written agreement, which covers most credit cards and loans, must be filed within four years of the first missed payment that was never cured. A sale to a debt buyer does not restart the clock. The defense must be raised in the answer or it is lost, and a payment made after the period has run does not revive a consumer debt. Our statute of limitations guide explains how the period is measured.
- Standing and chain of title. A debt buyer must prove that it actually owns your specific account, through every sale from the original creditor. Bills of sale that list no account numbers, or that are missing a link, are common, and California law sets specific requirements for what a debt buyer must plead and prove.
- The amount. Interest, fees, and charges added after charge-off are often unsupported. The plaintiff must prove the balance with account records, not a one-line summary.
- Identity and service. Mistaken identity, identity theft, and defective service of the summons each end a case on their own.
When a plaintiff cannot meet its burden, the usual outcome is a dismissal, often in exchange for a mutual release so the account cannot be sold and sued on again.
Settlement or Trial
Resolving the case on terms that protect you, or trying it when the plaintiff cannot prove its claim.
Most defended cases settle. A debt buyer that paid pennies on the dollar for an account would rather take a discounted lump sum than spend a year proving a case it may lose. Settlements in a defended case commonly run well below the amount claimed, and the terms matter as much as the number: no judgment entered, a dismissal with prejudice on payment, a mutual release, and no reporting of the account as anything but settled. Our guide to settling a collection lawsuit covers the paperwork traps.
When the plaintiff cannot prove the account or sued too late, the better result is a dismissal rather than a payment, and we take the case to trial when that is what it takes.
When a creditor forgives part of a debt, it may send you and the IRS a Form 1099-C. If you were insolvent when the debt was forgiven, some or all of the amount may be excluded from income. Because we also practice tax resolution, we address this before the settlement is signed, not the following April.
Judgments, Including Ones You Never Knew About
Undoing a default judgment when service was defective, and dealing with a valid one.
Many people first learn of a collection case when their paycheck comes up short. The summons was left with a roommate, delivered to an old address, or never delivered at all. A default judgment entered after defective service can be set aside by motion, which reopens the case and ends any garnishment based on it. The motion must be brought promptly, generally within two years of the judgment and sooner once you receive written notice of it, so the timing of the call matters.
A valid judgment in California is enforceable for ten years and can be renewed, with interest accruing at ten percent a year. It does not go away on its own. The realistic options are a negotiated payoff, usually at a discount for a lump sum; a payment arrangement in exchange for a release of the garnishment; or bankruptcy, which discharges most consumer judgments entirely.
Wage Garnishment and Bank Levies
Stopping or reducing the withholding from your paycheck, and recovering a frozen account.
How much can be taken
For an ordinary judgment, California limits withholding to the lesser of 20 percent of your disposable earnings or 40 percent of the amount by which your disposable earnings exceed 48 times the state minimum hourly wage. With the 2026 state minimum wage of $16.90, roughly the first $811 of weekly disposable earnings is fully protected, and more where a higher local minimum wage applies, as in the City of Los Angeles. Employers sometimes withhold more than the law allows; we check the calculation first.
Four ways to stop a wage garnishment
- A claim of exemption. A sworn budget filed with the Sheriff showing that your household needs some or all of the withheld wages. If the creditor does not oppose it within about ten days, the order is modified; if it does, a judge decides at a hearing. This is the fastest route and the one most people have never heard of. We prepare the claim and the financial statement and appear at the hearing.
- An agreement with the creditor. A payment plan or discounted lump sum in exchange for a release of the earnings withholding order.
- Setting aside the judgment. When service was defective, a motion to vacate ends the garnishment and reopens the case.
- Bankruptcy. Filing stops the garnishment the same day through the automatic stay, and a Chapter 7 discharge eliminates the judgment permanently. Wages taken in the 90 days before filing can sometimes be recovered.
Our wage garnishment guide covers each route in detail, including what the judge weighs at the hearing and how a modified order works.
Bank levies
A bank levy freezes what is in the account on the day it is served. California automatically protects a minimum balance, adjusted each year, and fully protects Social Security, SSI, disability, and certain other deposits. A claim of exemption, filed on a short deadline after the notice of levy, recovers protected funds. Levies also tend to signal that a garnishment is next, so we address both at once.
IRS and Franchise Tax Board wage levies need no court judgment and follow their own rules; we release them through tax procedures such as hardship status, a payment plan, or an offer in compromise. See our guide to tax liens and levies. Child and spousal support withholding is governed separately and takes priority over an ordinary garnishment.
When Bankruptcy Is the Better Answer
Defending one lawsuit makes sense when it is one lawsuit. When there are several judgments, or the debts behind them are too large to settle, defending them one at a time only delays the outcome. Because we also practice bankruptcy, we compare the two routes at the first meeting and recommend the one that costs you less. A Chapter 7 case typically ends every collection lawsuit, judgment, and garnishment at once, in about three to four months.
Fees
Most of our collection defense work is done for a flat fee, quoted at the consultation and set out in a written agreement before work begins: filing an answer and defending a limited civil case, preparing a claim of exemption and appearing at the hearing, or negotiating and documenting a settlement. Motions to set aside a judgment and cases that go to trial are quoted separately, either as a flat fee or hourly.
- The summons and complaint, or the garnishment papers your employer gave you
- Every letter from the collector, with envelopes
- Your last two or three pay stubs and recent bank statements
- Any statements or records you have for the account
Where We Practice
Collection cases against Los Angeles residents are filed in the Los Angeles County Superior Court, and garnishments here are served by the Los Angeles County Sheriff. We appear in the Stanley Mosk Courthouse downtown, the Van Nuys and Chatsworth courthouses in the Valley, the Santa Monica and Beverly Hills courthouses on the Westside, and the other districts of the county.
- Beverly Hills: 9350 Wilshire Blvd, Suite 203, Beverly Hills, CA 90212, serving Beverly Hills, West Hollywood, Santa Monica, Culver City, Westwood, Hollywood, Mid-Wilshire, Koreatown, and downtown Los Angeles.
- Sherman Oaks: 15303 Ventura Blvd, Suite 900, Sherman Oaks, CA 91403, serving Sherman Oaks, Studio City, Encino, Tarzana, Van Nuys, North Hollywood, Burbank, Glendale, and the San Fernando Valley.
Consultations are available in person, by phone, and by video. The attorney and staff speak Russian. Мы говорим по-русски.
Frequently Asked Questions
I was served with a debt collection lawsuit in Los Angeles. What should I do first?
Note the date you were served and call a lawyer before the 30-day deadline to respond. Do not call the plaintiff’s law firm first; anything you say about the debt can be used in the case. A timely answer prevents a default judgment and forces the plaintiff to prove its claim.
Can a debt collector sue me after four years?
A lawsuit on a written agreement filed more than four years after the breach is barred by the statute of limitations, but only if you raise the defense in your answer. The court will not raise it for you, and a default judgment on an expired debt is still a judgment.
How much can my wages be garnished in California?
For an ordinary judgment, the lesser of 20 percent of disposable earnings or 40 percent of the amount above 48 times the state minimum wage per week. Roughly the first $811 of weekly disposable earnings is protected in 2026, more where a higher local minimum wage applies. A claim of exemption can reduce the amount further or stop it entirely.
How fast can a wage garnishment be stopped?
A claim of exemption is filed with the Sheriff within days of the first meeting; if the creditor does not oppose it within about ten days, the order is modified. A bankruptcy filing stops the garnishment the same day. A negotiated release depends on the creditor but often takes one to two weeks.
I never received the lawsuit. Can the judgment be undone?
Often, yes. A default judgment entered after defective service can be set aside by motion, generally within two years of the judgment and sooner once you have written notice of it. If the motion is granted, the case reopens and any garnishment based on the judgment ends.
Will settling a collection lawsuit hurt my credit?
A charged-off account is already on your report. A settlement with the right terms, no judgment entered and the account reported as settled or deleted, is far better for your credit than a judgment, which can be enforced for ten years.
Can my employer fire me because of a garnishment?
No. California law prohibits an employer from firing an employee because wages were garnished for a single judgment.
Should I defend the lawsuit or file bankruptcy?
Defend when it is one debt and the plaintiff’s case is weak or the amount can be settled. Consider bankruptcy when there are several debts or judgments, or the total is more than you could settle in a few years. We compare both at the first meeting and recommend the one that costs less.
Gregory Grigoryants is a California attorney (State Bar No. 286804) who has represented individuals, families, and business owners in bankruptcy, debt collection defense, and tax resolution matters for more than 13 years. He practices from offices in Sherman Oaks and Beverly Hills and speaks English and Russian.