What To Consider When You Are Sued By A Debt Collector

Dealing with high amounts of debt can be scary and frustrating. If you continue to avoid making payments on your loans or credit cards, your creditor will eventually send your debt to a debt collection company. Once this happens, you will start receiving constant letters and phone calls. If you still ignore these payments, for whatever reason, you may eventually be sued by the debt collector. If that happens, you need to know what to expect next. Here are some things that can happen and what you may be able to do to avoid a debt collection lawsuit.

You Receive a Summons

Just like any other lawsuit, you will receive a summons notifying you of the impending lawsuit. The summons will include the information regarding the lawsuit, such as when the complaint was filed and your next steps. The summons will also include the date on which the creditor will receive an automatic judgment against you if you fail to take the necessary steps to deal with the debt.

You File Your Answer

Included with the summons is an answer form. You need to return the answer form including why you do not think you should be sued for the debt. Although it is not required, it is ideal to speak to an attorney before you return your answer. Based on how you answer, your words may be used against you and you could risk losing the lawsuit. There is a deadline to file your answer. Take this time to decide how you want to approach the lawsuit. You can either ignore it and receive a judgment against you, which can include liens on your bank account, or you can file an answer and fight the debt in court. You may also want to consider filing bankruptcy if you have considerable debt that you have no way of paying.

You Can Consider Bankruptcy

If you have decided to file for bankruptcy, the first thing you need to do is speak to a bankruptcy attorney. You need to do this as soon as you can to get the process going. If you choose bankruptcy, your debts will receive an automatic stay, which means you do not have to pay them while you are going through the filing process. Bankruptcy can help you protect the assets you have and help you plan out what your next steps are to get your debt under control. Contact a bankruptcy attorney service to learn more.