Getting sued is a terrifying experience. Even if a consumer knows that it may be coming, getting a certified letter in the mail confirming these fears is never a welcome event. When this happens, it’s important to act fast. Making the wrong move can have very negative consequences.
What to Not to Do After Receiving Notice of the Lawsuit
When a consumer stops paying a bill, the creditor has a right to sue for what they are owed. Once a creditor files a lawsuit, the defendant will receive a Summons to appear in court. This Summons may be brought to their home or work by a process server or sent via certified mail. Most states require a response to this paperwork. If the Summons is brought in person, the consumer has 20 days to respond to the court. If the Summons is mailed, the consumer has 30 days to respond.
It is absolutely imperative that a Summons is not ignored. After receiving this paperwork, most people want to just throw it away and hope that the situation disappears. Unfortunately, the situation will not go away on its own. If the defendant does not respond to the notice, the creditor automatically wins the lawsuit. To get what they are owed, they will either garnish the consumer’s wages or withdraw the money from their bank account.
How to Resolve the Situation
To avoid these consequences, a consumer may want to contact an experienced credit card debt settlement agency and explain their situation. If the agency believes that the creditor will not be able to prove the debt, they may advise the consumer to request validation. In most cases, this must be done within 30 days of receiving the Summons. Once this request is made, the creditor must provide proof of the debt. If the debt is very old or has been sold to different collection agencies, this may be very difficult to do.
Another option is to contact the creditor and arrange payment. When working with a credit card debt settlement company, the company will usually contact the creditor on the customer’s behalf. The company will explain their customer’s financial situation and try to arrange alternative payment.
Most creditors would prefer to settle out of court. Going to court takes both time and money. In the majority of cases, creditors will be willing to either settle the debt for less or accept a payment plan.
Creditors don’t sue consumers to be mean or vicious. They do it because they need to collect payment or their company would lose money. If the consumer makes an effort to rectify the situation, most creditors will drop the lawsuit, especially if the consumer has an experienced professional working on their side.
Related articles:
- Fear of Credit Card Debt Summonses and Bankruptcy � How to Avoid Them – Part 2
- Credit Card Debt Judgment – What Happens When You Are Sued
- When Credit Card Lawsuits Go Bad – Debt Lawyer Sanctioned for Pursuing Invalid Credit Card Debt
- Ignoring Credit Card Debt – What’s Next?
- Help to Pay Off Credit Card Debt
