Summary: Do you have a collection agency after you for an old debt? Find out if it's smart to pay a debt before the court date.
If you are dealing with a debt lawsuit, it can be a stressful process. Especially because many debt lawsuits are the result of poor financial planning, or simply forgetting to pay a bill. If you are being sued for debt there are many options and things to consider. Although you may want to simply pay off the debt before you go to court, you will need to respond properly first, and decide whether or not that is the best option.
What happens when you don't show up for your court date
What is important to note is that although you won't go to prison for not paying a debt, you can go to jail for avoiding a court date. This means you should always respond properly, via a legal Answer.
If you don't respond, the creditor will be awarded a default judgment. This means that you lose the case automatically, and they then have the legal ability to garnish your wages, and even take money directly from your bank account, or seize your property.
This is why the most important thing to do when it comes to a debt lawsuit is to respond and show up for your court summons.
Respond to a debt collection lawsuit in 15 minutes with SoloSuit.
What happens when you are sued for a debt
Credit card companies can sue you for a debt that you have defaulted on. Each bank has its own policy. Usually, you do not need to be worried about being sued for debt until a debt is at least six months past due.
If they attempt to collect on your debt and you ignore it, or you have not paid anything for six months, it may be considered uncollectible. The next step is reporting to the credit bureau. At this point, you might either be sued by the original creditor or sued by a third-party debt collector to whom they have sold the debt.
You must be aware of a loophole that exists when it comes to being sued for debt. The statute of limitations governs how long you can be sued for debt. Depending on the state that you live in, you can be sued for anywhere from three to 20 years. If you pay on your debt, then it starts the debt period over again. This means that if you have an older debt, you may be able to have the lawsuit canceled until you wish to pay on it.
Make the right defense the right way with SoloSuit.
Can you pay a debt before the court date?
If you forgot about a debt and have the funds to pay it off, or you suddenly have come into the means to pay for the debt you are being sued for, you have a few options. One positive part of being sued for debt is that you have the opportunity to negotiate. Since you are willing to pay the debt in full, you can attempt to settle the debt for less. You can also set up a payment plan ahead of time. Both of these options can help you avoid having a default judgment be placed against you.
Avoiding the courtroom, in general, is always the best plan. Creditors and debt collectors prefer to avoid the courtroom since it costs them money in legal fees. Plus, once you enter the courtroom you can no longer negotiate in the same way.
Use SoloSuit to respond to debt collectors and win your case.
Handling a settlement before your court date
Once you are summoned for court, you have fewer options, but you still have more options than when you are in court. If you are looking to settle your debt you need to take the following steps to prepare yourself.
Find out information on who is suing you
Check to see whether or not you are being sued by your original creditor or a debt collection agency. If you are being sued by a collection agency, they most likely bought your debt for pennies on the dollar. This means that you have a better chance of negotiating a lower amount.
Respond to the lawsuit
As mentioned previously, it is essential to respond to the lawsuit. Even if you plan to pay off the amount before the court, you still need to respond within the allotted amount of time.
Ask for a settlement
The final step is to contact whoever is suing you and discuss a settlement. You can offer a lump sum at a lower price, and pay it immediately in full. Typically you will be able to pay a lot less in this situation. Another option is to ask for smaller, more manageable payments on a schedule. Although this will not reduce the amount you pay, it can make it so that you do not have a default judgment placed against you.
What is SoloSuit?
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
Respond with SoloSuit
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance
How to answer a summons for debt collection in your state
Here's a list of guides for other states.
All 50 states.
Guides on how to beat every debt collector
Being sued by a different debt collector? We're making guides on how to beat each one.
Win against credit card companies
Is your credit card company suing you? Learn how you can beat each one.
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
Get answers to these FAQs
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendant's Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can I Stop Wage Garnishment?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouse's Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
What Is a Warrant in Debt?
How Many Times Can a Judgment be Renewed in Oklahoma?
Can an Eviction Be Reversed?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
Do I Need a Debt Negotiator?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Learn More With These Additional Resources:
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
How to Liquidate Debt
Arkansas Statute of Limitations on Debt
You're Drowning in Debt — Here's How to Swim
Help! I'm Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Here's What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
How to Stop a Garnishment
Debt Eraser Review
Do Debt Collectors Ever Give Up?
Can They Garnish Your Wages for Credit Card Debt?
How Often Do Credit Card Companies Sue for Non-Payment?
How Long Does a Judgement Last?
How Long Before a Creditor Can Garnish Wages?
How to Beat a Bill Collector in Court