Nobody wants to hear the terrifying words “you’ve been served.” That is the stuff interesting television dramas are made of. Not something we want happening on our front door.
It may take months, or even years, for a creditor to bring a lawsuit against you for unpaid debt. But once you are served, the lawsuit is in motion and it is critical that you face it head-on. The following are options to consider after a creditor sues you.
Option to Respond to the Lawsuit
Even if you know you owe the money, you have the right to defend yourself.
When you were served with the lawsuit you were given a complaint and summons. The complaint lets you know which creditor is suing you and the amount of unpaid debt they claim you owe. The summons is notification of a pending court date. You have the right to respond to the complaint by filing an answer. You may want to hire an attorney to help you defend the lawsuit.
Settle the Lawsuit
As the suit moves forward you can attempt to work out a settlement.
If you cannot work out a settlement, or you cannot afford to pay a lump sum settlement amount, then you may want to explore if bankruptcy is an option. Filing for bankruptcy would put an end to the lawsuit and erase other debts.
Ignoring the Lawsuit is Not A Solution
If you do not file an answer, and otherwise ignore the lawsuit, the plaintiff creditor can get a default judgment against you. A default judgment gives the creditor rights to aggressive collection action, including wage garnishment and bank levies. Learn more in our article My Creditor Sued Me and Now Has A Judgment here.
Option to File for Bankruptcy Protection
Filing for bankruptcy will put an immediate stop to the lawsuit. Here are a few other ways bankruptcy can help you:
- Bankruptcy will stop pending lawsuits, and prevent more lawsuits for unpaid debts from being filed.
- If you file for bankruptcy, you do not have to file an answer to the lawsuit and your creditor will be precluded from getting a default judgment against you.
- Bankruptcy will stop all collection action, including collection phone calls and wage garnishment.
- You will not lose all of your belongings if you file for bankruptcy.
- Bankruptcy can end your financial struggle and help you gain financial freedom.
Contact us for a free consultation. Together we’ll explore how bankruptcy can help you eliminate lawsuits and erase debts.
We proudly serve the people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.