Consumer debtors are often surprised to learn that a judgment has been entered against them even as they are negotiating a payment plan with a debt collection agency.
What the SAM hell is happening here?
Debt collection agencies are in business to recover as much money as possible, as quickly as possible. In that effort, they will pull out all the stops and proceed on parallel paths to recover unpaid debt.
Litigation proceeds at is own pace and negotiations for debt settlements do not necessarily stop the litigation process.
It is therefore critical then while negotiating a debt settlement after you have been sued to get an agreement in writing with the debt collection agency to forbear from continuing to prosecute the lawsuit pending reaching an agreement regarding the debt and documenting whatever settlement is agree upon.
This is particularly important if you have not yet filed an answer to the summons and complaint.
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