Debt Defense- California Procedure

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    How Consumer Debt Cases Move Through the California Court System

    If you’ve been sued for a credit card, medical bill, personal loan, or private student loan in California, your case will follow specific procedures.

    Understanding deadlines, court types, and defenses can help you protect your rights, avoid default, and possibly get the case dismissed.

    1. California Court Structure for Debt Cases

    Most consumer debt lawsuits in CA are filed in one of these:

    • Small Claims Court

      • Handles cases up to $12,500 (as of 2023; limit may change)

      • No attorneys allowed for plaintiffs or defendants at trial

      • Simplified process, faster hearings

    • Limited Civil Cases

      • For cases over $12,500 and up to $25,000

      • Attorneys allowed

      • Limited discovery rules

    • Unlimited Civil Cases

      • For cases over $25,000

      • Full discovery and more formal procedures

    2. How a Debt Lawsuit Starts in California

    A. Filing the Complaint

    • The creditor (or debt buyer) files a Complaint stating:

      • The amount claimed

      • The legal basis (breach of contract, account stated, open book account)

      • Any supporting documentation

    B. Service of Process

    • You must be served with:

      • A Summons (telling you when and how to respond)

      • The Complaint (listing allegations)

    • Service is usually personal (in hand) or substituted (left with another adult at your residence and mailed).

    3. Time to Respond

    • You have 30 calendar days from the date you are served to file a written Answer with the court.

    • If you do not respond within 30 days:

      • The creditor can request a default judgment

      • Once entered, collection efforts can start immediately

    4. Pretrial Process

    • Case Management Conference (CMC): In Limited and Unlimited Civil cases, the court sets a CMC to discuss scheduling, settlement, and motions.

    • Small Claims: Trial date is typically set when the plaintiff files the case.

    5. Discovery (Evidence Exchange)

    • Small Claims: No formal discovery — bring all evidence to trial.

    • Limited Civil: Limited to 35 combined discovery requests (interrogatories, document requests, admissions), plus depositions.

    • Unlimited Civil: Full discovery allowed — extensive written discovery, depositions, expert disclosures.

    6. Motions

    Common motions in CA debt cases include:

    • Demurrer — Argues the complaint is legally insufficient

    • Motion to Strike — Removes improper parts of the complaint

    • Motion for Summary Judgment — Seeks judgment without trial due to no factual disputes

    • Motion to Compel — Forces the other side to respond to discovery

    7. Trial

    • Small Claims: Informal bench trial before a judge; both sides present testimony and documents.

    • Limited/Unlimited Civil: Bench or jury trial; formal California Rules of Evidence and Civil Procedure apply.

    The creditor must prove:

    1. They own the debt (critical for debt buyer cases)

    2. You agreed to the debt (contract, account, or conduct)

    3. The balance is correct and supported by admissible evidence

    8. Judgment

    If the creditor wins, the judgment may include:

    • Principal amount owed

    • Pre- and post-judgment interest

    • Court costs

    • Attorney’s fees (if allowed by contract or statute)

    California judgments are valid for 10 years and can be renewed for another 10 years.

    9. Post-Judgment Collections in California

    Creditors can:

    • Garnish wages — Up to 25% of disposable income (or less if you qualify for a lower percentage under hardship rules)

    • Levy bank accounts — Seize funds, with exemptions for certain benefits (Social Security, veterans’ benefits, retirement funds)

    • Place liens on real property

    10. Appeals

    • Small Claims: You have 30 days from judgment to appeal for a new trial in the Superior Court (plaintiffs generally cannot appeal, but defendants can).

    • Limited/Unlimited Civil: You have 60 days from the mailing or service of the notice of entry of judgment to file a Notice of Appeal.

    11. Common Defenses and Legal Violations

    • Statute of Limitations: Most written contracts in CA have a 4-year limit from default or last payment; oral contracts are 2 years.

    • Lack of Standing: Debt buyer cannot prove assignment of your account.

    • Improper Service: Service not done according to CA law.

    • FCRA / FDCPA Violations: False credit reporting or abusive collection practices.

    Key Takeaways

    • California’s 30-day response deadline is generous, but missing it leads to quick default.

    • Debt buyers often lack the documentation needed — demand proof.

    • Even if the debt is valid, settlement can reduce costs and avoid judgment.

    • Certain income and assets are protected — know your exemptions.

    📞 Sued for a debt in California?
    We defend consumers in Small Claims, Limited, and Unlimited Civil cases, and we fight to protect wages, bank accounts, and property from improper collection. Call 855-978-6564!