Friend started paying after I filed small claims, but wants the case dismissed now
Location: California, USA.
I lent a friend $1,800 for a car repair in March. Our texts say it was a loan, no interest, and he would repay the whole amount by May 31. Nothing came back. After several reminders and a written demand, I filed in small claims in September. He has been served and the hearing is November 10.
Yesterday I recieved $300 from him by bank transfer, labelled loan repayment. He then proposed paying $300 on the first of each month starting November 1, but says I need to dismiss the case now because he's started paying.
I acknowledged the payment and said the remaining loan balance is $1,500. I havent agreed to his proposed schedule or promised to dismiss. I'm willing to take installments. I'm less willing to start the filing and service process over if he stops after another payment.
Does accepting this partial payment require me to dismiss anything? If we agree on installments, how should we handle the pending hearing so I can still pursue the unpaid balance if he stops?