What do you do if you have been sued?

If you received a lawsuit you have a couple options:

  • Attempt to Negotiate a settlement before the answer is due. Many consumers recognize they may owe a debt and choose to attempt to settle the debt before an answer is due to the court. They are often receptive to a quick settlement rather than spending more time and money in a lawsuit. Even if they can provide some of the documentation to the court, there is always a chance they could lose.
  • Answer the Lawsuit. Even if a consumer thinks they owe a debt it is still up to court to decide that you owe the debt. The plaintiff has to prove that they have the right to file suit, and have enough documentation to prove a debt is owed. They may not be able to successfully produce all required documentation when challenged.
  • Do nothing. Many people decide to do nothing for lack of funds or fear of what can happen. The plaintiff may take a judgment against you and then ultimately have you bank accounts frozen (bank garnishment). Judgment creditors can also wage garnish. See rules for Wage Garnishment. Judgments in Texas are good for 10 years initially and they carry a minimum interest of at least 5%. The amount of an unresolved judgment can significantly increase over time.
  • Seek bankruptcy protection. If you are interested in seeing if bankruptcy is right go to a Bankruptcy Attorney.

    IF YOU ARE SUED, YOU NEED TO ANSWER THE LAWSUIT PARTICIPANTS IN THE SYSTEM OFTEN HAVE A BETTER OUTCOME THAN THOSE THAT DO NOTHING.

     A creditor or debt buyer may decide to file a lawsuit against a debtor if they feel this is the best way to collect a debt. Debt collector lawsuits are filed by the thousands every month. In fact, many people are surprised that they are being sued for only a few thousand dollars or believed that since it was a credit card debt they would not be sued.

    Debt Buyers that File Lawsuits

    Creditors that File Lawsuits