What happens if a creditor sues me?

Debt is a tricky thing – as easy as it is to rack it up, getting out of it can prove to be an uphill battle. At some point, once the nasty collection letters and phone calls have not been successful, the creditor’s next step is to file a law suit in civil court to get their money back.  

If this happens to you, here’s what to expect. A summons will be sent to you from the court indicating that you have been sued and you will have 30-45 days to respond to the summons. You will have to answer the summons by either explaining why you’re running behind, writing an explanation as to why you don’t owe the debt, or stating that the debt amount is not correct. If you don’t answer the summons by the time it’s due, the court will automatically judge in favor of the creditor, which is called a default judgment.

A default judgment basically says that since you didn’t respond to the court summons, you are in effect admitting to responsibility for the debt and the creditor can now go after your assets to get their money. They can get a court order to liquidate your bank account or garnish your wages until the debt is satisfied.

If you do answer the summons, you’ll likely be scheduled for a court date. Generally on this day, the judge will order you and the creditor to meet with a mediator to work out an agreement to satisfy the debt. If you are financially able to work something out, that’s ideal. Otherwise, if you are unable or unwilling to work out a deal with the creditor, the case goes forward and unless you can prove otherwise, you’ll be liable for the debt, plus whatever court fees and legal fees are included.

But there are alternatives to going through the court process. Creditors will likely be willing to work with you even after the collection letters and phone calls haven’t worked. You should hire an experienced debt settlement attorney to work out a settlement that could help you avoid a judgment on your credit record and costly court and legal fee.

To schedule a FREE CONSULTATION with the Law Offices of Brandon Rosenbloom, call us at 678-609-8724 or contact us online today.