See also: settlement in lieu of judgment in civil cases. There is an entire industry (debt collection) built around using the courts as a cudgel to coerce people into settlements for debts that they might not have a legal obligation to pay (because of the debt collectors' poor record-keeping, running afoul of procedural issues or consumer protection laws, etc.). Particularly for smaller amounts, attorneys will not represent consumers for defense, and (no matter what anyone tells you) judges defer to fellow lawyers if the issue goes to trial and a defendant is self-represented. Perversely, it's sometimes in a person's best interests to rack up larger debts, so that their case is worthwhile for an attorney to pick up, at which point they will likely try to negotiate a settlement rather than go to trial.