Facing a lawsuit from a creditor can be overwhelming. However, knowing the legal process and steps to take can help. Here’s what to expect: from the first steps after receiving the summons and preparing your defense to attending court hearings and exploring options after judgment.
1. Initial Steps After Being Sued
Receiving summons and complaints is the first sign of being sued. These documents detail the creditor’s claims. They also indicate how much you should pay. You must act quickly once you get the summons. Disregarding a lawsuit will not make it go away. Instead, it could get you a default judgment. In this case, the court rules for the creditor because you didn’t put up any fight.
Carefully read the summons to know what you are accused of. Check if you actually have any debts. If you do, ensure the creditor has the legal right to request payment. Sometimes, debts get sold to other third-party debt collectors that don’t have the correct documented support for their claims. This could become part of your defense if you spot any inconsistencies about the debt or think it’s not yours.
You should also consult with a lawyer immediately after being sued. A debt collection defense attorney, such as Paul Mankin Law, can be helpful. They can guide you on how to respond to the lawsuit. Contact legal aid organizations or consumer protection agencies if you cannot pay a lawyer.
2. Preparing Your Defense
Preparation of your defense follows after you read the summons and seek legal advice. The first move is to make a response to the lawsuit against you. This is a formal response or “answer” to the court. Every claim in the complaint is addressed in this document. It states whether you admit, deny, or do not have enough information to answer the claims. Answering as soon as possible prevents you from defaulting. It allows you the opportunity to appear in court and present your case.
Gather all relevant documentation related to the debt. These include account statements and payment records. You should also compile documents related to the interaction with the creditor and anything else supporting your position. Organize them to create a clear timeline.
You should have different defenses depending on your circumstances. Common ones include questioning the accuracy of the debt amount. You can also claim that the debt is too old to be collected based on the statute of limitations. You can even argue that debt collection is illegal. Your attorney will advise you on the right legal strategies for your case.
3. Attending Court Hearings
After crafting your defense, you must attend all court appearances. Failing to appear in court will mean a default judgment is entered against you. This can happen no matter how fantastic your defense is. Arrive early so you don’t have to worry about security screening or finding the right courtroom. Be sure to dress appropriately for court as well.
Both parties will be given the opportunity to present their case at the court hearings. The creditor will present evidence in support of their claims. You will also get to present your own evidence as to why it shouldn’t stand. Be prepared to answer questions from the judge and the creditor’s attorney.
Your attorney will represent you in court and handle most of the communication. If you are representing yourself, remain calm and respectful during the proceedings. This shows confidence and composure so the judge may think more favorably of your case. Explain your arguments and evidence in as concise a manner as possible.
The court may sometimes encourage mediation before going to trial. This is a chance for an impartial party to help both sides agree. Mediation will save all parties time and legal expenses. However, make sure any settlement contract is in writing and approved in court.
4. Exploring Post-Judgement Options
If the court sides with the creditor, you need to know your next steps. A Judgment means the creditor can take more legal action to get the debt paid. This could include taking money from your wages or bank account. The creditor can also put an ownership/lien on your property.
The most prominent option is to agree with the creditor on a payment plan. The creditor will probably agree to a repayment plan. Discuss options that suit your financial situation and ensure any arrangement is written. If you can’t pay, then seek bankruptcy advice. Bankruptcy can get rid of some of your debts. It can also stop collection, such as wage garnishment and bank levies. Speak to a lawyer to determine if this option suits you.
You may also file a motion to vacate the judgment. That’s only if you think there were problems with the original trial or if new evidence has arisen. This motion seeks to have the judgment set aside and ask for a new trial. However, this complicated legal process typically requires a lawyer’s assistance.
Endnote
Being sued by a creditor is a serious matter, and acting quickly and wisely is crucial. By knowing the basic first steps, drafting a strong defense, going to court hearings, and examining post-judgment avenues, one can better maneuver through the legal process and defend one's rights.
