If you have unpaid debt from years ago, there’s a chance that you may receive a letter in the mail declaring that you’re being sued. And, if you fail to appear in court, the judge will rule in favor of the plaintiff.
There are things you need to keep in mind if you receive a subpoena.
Not sure where to start? Don’t worry, we’ve got you covered.
Let’s take a look at everything you need to know about getting sued for debt.
So… What Happens?
Getting sued for debt involves a creditor filing a complaint with the state that declares you owe them money, interest, and potentially their attorney fees.
As previously mentioned, ignoring the summons and not showing up to court is a poor decision to make. This will likely result in the judge plaintiff the opportunity to freeze your bank account, place a lien on your property, and garnish your wages.
If your finances are already tight, this could cause you to have to take out loans or use credit cards to pay for expenses, putting you in further debt.
So, you’re going to have to take action.
You only have a maximum of 30 days to respond, so you can’t take too much time.
Before you do, though, you’ll need to gather some information. This includes:
- Who the plaintiff is and how much they say you owe.
- Whether or not you owe the debt.
- Whether the debt is within the statute limitations. After a certain amount of time, you can’t rightfully be sued—even if creditors attempt to.
It’s important that your written response is accurate and inclusive, though, which may be off-putting to people who aren’t familiar with the law.
So, it’s in your best interest to employ legal assistance for a debt lawsuit to make sure things come out in your favor.
Many attorneys will provide a free consultation, and it’s not uncommon for the creditor to be responsible for your legal fees if you will. This scenario will allow you to defend yourself at no cost.
What If I Don’t Owe The Debt?
Sometimes, names get switched (or mistyped) as debt moves from collector to collector.
Luckily, someone attempting to sue you for debt that you don’t owe will have to prove that you’re obligated to pay it. This means they’ll need financial documents with your signature, proof that you’ve made payments toward the debt in the past, etc.
If (and when) they aren’t able to do so, the judge will dismiss the case and you won’t have to worry about it.
Getting Sued for Debt Can Seem Intimidating
But it doesn’t have to be.
With the above information about getting sued for debt in mind, you’ll be well on your way to
For more legal info that can help you in the future, make sure to check out the rest of our blog.