Sued by Westlake Portfolio? Here's How to Settle or Fight Back

Westlake Portfolio Management just sent you a lawsuit notice. Maybe you recognize the original debt—maybe you don't. Either way, you have 21-30 days (depending on your state) to respond before they win by default and start garnishing your paycheck.

Westlake Portfolio buys charged-off credit card debt, auto loans, and personal loans from original creditors. They file lawsuits frequently. According to CFPB complaint data, consumers report aggressive collection tactics, disputed balances, and attempts to collect time-barred debt. But here's the thing: Westlake Portfolio often settles for 40-60% of the claimed amount if you handle this correctly.

This guide walks you through your options,from validating the debt to negotiating a settlement to filing a bankruptcy petition if the numbers don't work. Skip the panic. Start with action.

What Westlake Portfolio Management Actually Does

Westlake Portfolio Management operates as both a debt buyer and loan servicer. They purchase portfolios of defaulted accounts from credit unions, auto finance companies, and unsecured lenders. Once they buy your account, they become the legal owner of the debt,not just a middleman collecting for someone else.

That distinction matters. When a debt buyer like Westlake Portfolio sues you, they must prove they own the debt and that you owe the amount claimed. Many cannot. A 2013 Federal Trade Commission study found that debt buyers frequently lack adequate documentation to prove their claims in court.

Westlake Portfolio is headquartered at 4751 Wilshire Blvd, Suite 100, Los Angeles, CA 90010. Their mailing address for correspondence is P.O. Box 76809, Los Angeles, CA 90054. You can reach them at 877-854-5688, though calling before you have a strategy can hurt your position.

Step 1: Validate the Debt Before You Negotiate

You have 30 days from your first contact with Westlake Portfolio to request debt validation in writing. Send this request via certified mail with a return receipt. Ask for:

• The name and address of the original creditor
• A complete account statement showing how the balance was calculated
• Proof that Westlake Portfolio owns the debt (assignment agreements, bills of sale)
• A copy of the original signed contract or credit application
• Documentation of the charge-off date and last payment date

Once Westlake Portfolio receives your validation request, they must stop collection activities until they provide the requested information. Many debt buyers cannot produce adequate documentation. If they fail to validate, they cannot legally collect,and any lawsuit they filed becomes significantly weaker.

If they've already sued you, request validation anyway. Send it to their attorney's office listed on the summons. Courts increasingly require debt buyers to prove standing and account details. Your validation request creates a paper trail showing you disputed the debt from the start.

Step 2: Respond to the Lawsuit (This Is Not Optional)

Ignoring a lawsuit never works. If you don't respond within your state's deadline (usually 20-30 days), Westlake Portfolio wins a default judgment. With a judgment, they can:

• Garnish up to 25% of your disposable earnings (or whatever your state allows)
• Freeze and levy your bank accounts
• Place liens on real property you own
• Renew the judgment for 10-20 years in most states

Your response document is called an Answer. You'll need to address each numbered paragraph in their Complaint. For paragraphs where they claim you owe money, write "Denied for lack of sufficient information." For paragraphs about Westlake Portfolio owning the debt, write "Plaintiff has not provided proof of standing."

Include affirmative defenses:

• Statute of limitations: If your last payment was more than 3-6 years ago (varies by state), the debt may be time-barred. Westlake Portfolio cannot legally sue on expired debt.
• Lack of standing: Westlake Portfolio must prove they own the debt through a valid chain of assignment.
• Improper service: If you weren't properly served, the court lacks jurisdiction.
• Accord and satisfaction: If you had a prior settlement agreement, you may have already resolved the debt.

File your Answer with the court and serve a copy on Westlake Portfolio's attorney. Keep your proof of service. Miss this deadline, and you lose your leverage. If you need help preparing your response, our bankruptcy screener can connect you with professionals who handle debt defense cases.

Step 3: Negotiate a Settlement (Westlake Portfolio Settles Frequently)

Once you've validated the debt and filed your Answer, you're in a stronger position to negotiate. Westlake Portfolio bought your debt for pennies on the dollar,often 4-8 cents per dollar of face value. They have room to settle.

Start by determining what you can realistically pay. If you owe $8,000 and can scrape together $3,200, that's a 40% settlement. If you're truly broke, offer $1,000 and see what happens. Many debt buyers will take 25-30% rather than continue litigation.

Before you call or write, prepare your offer in writing. Include:

• The account number
• Your settlement offer (specific dollar amount, not a percentage)
• A deadline for acceptance (7-10 days)
• A requirement that they dismiss the lawsuit with prejudice
• A requirement that they report the account as "paid as agreed" or delete the tradeline

Send this offer via certified mail to the attorney handling the lawsuit and to Westlake Portfolio's main office. Do not make a payment until you receive the settlement agreement in writing. If they accept your offer verbally, demand written confirmation before you send any money.

Once you receive the written settlement agreement, review it carefully. It should state the total settlement amount, the payment deadline, and what happens after you pay. Most importantly, it should include a stipulation to dismiss the lawsuit with prejudice. Without that language, they could take your money and still pursue the judgment.

What If You Can't Afford a Lump Sum?

Westlake Portfolio sometimes accepts payment plans, but these agreements are risky. If you miss a payment, they can immediately pursue the full original balance plus court costs. Payment plans also keep the account active on your credit report longer.

That said, if a payment plan is your only option, insist on these terms:

• Monthly payments you can actually afford
• No acceleration clause (they can't demand the full balance if you're one day late)
• A 10-day grace period for each payment
• Immediate dismissal of the lawsuit once you make the first payment
• Final reporting as "paid" or deletion after the last payment

Get everything in writing before you send the first payment. Verbal agreements mean nothing in debt collection.

Step 4: Consider Bankruptcy If the Numbers Don't Work

Sometimes settlement isn't realistic. If you're facing multiple lawsuits, your income barely covers rent, or Westlake Portfolio is demanding an amount you'll never have, bankruptcy may be your best option.

A Chapter 7 bankruptcy wipes out unsecured debts like credit cards and personal loans in 3-4 months. You'll lose non-exempt assets (though most people keep their car, home equity up to a certain amount, and personal belongings). Filing costs around $335 in court fees plus attorney fees of $1,000-$2,000 in most areas.

Chapter 13 bankruptcy creates a 3-5 year repayment plan based on your disposable income. You keep your assets and pay what you can afford. Unsecured creditors like Westlake Portfolio often receive pennies on the dollar or nothing at all.

Both chapters stop lawsuits immediately through the automatic stay. Garnishments stop. Collection calls stop. Bank levies stop. If Westlake Portfolio already obtained a judgment, bankruptcy can eliminate it (though liens on real property may survive).

Run the numbers. If your total unsecured debt exceeds your annual income, or if you're being sued by multiple creditors, bankruptcy is likely cheaper and faster than settling each debt individually. Learn more about filing bankruptcy and whether it makes sense for your situation.

Your Rights Under the Fair Debt Collection Practices Act

Westlake Portfolio must follow the Fair Debt Collection Practices Act (FDCPA) when collecting debts. Violations give you leverage,and potentially a counterclaim if they sued you.

Westlake Portfolio cannot:

• Call you before 8 a.m. Or after 9 p.m. In your time zone
• Contact you at work after you tell them your employer prohibits personal calls
• Discuss your debt with third parties (except your attorney or credit bureaus)
• Threaten legal action they don't intend to take
• Sue you on time-barred debt in most states
• Misrepresent the amount you owe or add unauthorized fees
• Continue collection efforts after you dispute the debt in writing (until they validate it)

If Westlake Portfolio violates the FDCPA, document everything. Save voicemails, emails, and letters. Write down dates, times, and what was said during phone calls. You can sue them for up to $1,000 in statutory damages plus attorney fees. More importantly, FDCPA violations give you bargaining power to negotiate a better settlement or even a full dismissal.

Check the Statute of Limitations Before You Negotiate

Every state has a statute of limitations on debt collection lawsuits. This is the deadline for creditors to sue you. Once it expires, the debt becomes "time-barred." You still technically owe it, but they cannot legally sue to collect.

Statutes of limitations range from 3 to 10 years depending on your state and the type of debt. The clock usually starts on your last payment date or the date of your last account activity. If Westlake Portfolio sued you on time-barred debt, your Answer should include statute of limitations as an affirmative defense. In many states, this alone defeats the lawsuit.

Be careful: making a partial payment or even acknowledging the debt in writing can restart the clock in some states. Before you negotiate, confirm whether the statute of limitations has expired. If it has, don't negotiate at all. Simply raise it in your Answer and wait for dismissal.

What Happens After You Settle or Win

If you settle with Westlake Portfolio, insist on a dismissal with prejudice. This prevents them from refiling the same lawsuit later. Also demand that they report the account correctly to credit bureaus. Your settlement agreement should specify whether they'll report it as "paid," "settled," or delete the tradeline entirely.

A "settled" notation on your credit report is better than an unpaid judgment, but it still hurts your score for 7 years from the original delinquency date. If you're paying a significant settlement (50% or more), negotiate for deletion or a "paid as agreed" notation.

If you win the lawsuit (or they dismiss it), the account may still appear on your credit report as a charged-off debt. Dispute it with the credit bureaus if Westlake Portfolio cannot validate their ownership. Winning the lawsuit doesn't automatically fix your credit, but it stops the wage garnishment and bank levy risk.

If you file bankruptcy, the debt is discharged 60-90 days after your 341 meeting in a Chapter 7, or at the end of your payment plan in a Chapter 13. Your credit report will show the debt as "discharged in bankruptcy" rather than unpaid. Your score takes a hit, but you're no longer liable for the debt.

The Bottom Line

Westlake Portfolio Management sues frequently, but they also settle frequently. Validate the debt, respond to the lawsuit, and negotiate from a position of knowledge. If the numbers don't work, bankruptcy stops the lawsuit and eliminates the debt. You have options,ignoring the problem isn't one of them.