Yesterday I was served a court summons from an attorney's office on a debt that is about 2 years old (I think). The debt is for $10,000 (I believe it was originally $8,000, but with interest, etc) and certainly do not have the money to pay it off. I in a complete panic and am also very frightened that my wages may be garnished. I need some guidance on what to do next. I live in California so I am not sure on how the laws work here.

There is a note attached to the summons from the attorney's office indicating that if I want to avoid further litigation, I can call and try to arrange a payment plan - is this a good idea?

Please help! I really need some solid advice.

Thank you.

SOL in CA is 4 years on all but oral contracts. So, if the debt is only 2 years old, you are within SOL.

Is it a collection agency or original creditor suing?

If there is a good chance that they'll win in court, I'd try to make acceptable(to both parties) payment arrangements.

You want to try to avoid a judgment.

If you come to a payment agreement and they say the court date will be cancelled, do not take their word for it, check with the courts. Also, answer the summons saying that you and the plaintiff have come to a payment agreement and the planitff has stated that they will withdraw the case from court action.