So you’ve been sued? Things happen to good and bad people. You can be sued even if you don’t deserve it. However, banks and credit unions don’t care about why you’re being sued, or who is suing you. The only thing that they care about is that you are or have been sued, and the results. This can throw your credit into turmoil, and cause you to have parts of your wages seized. You need to be careful, and make sure that if you owe money for whatever reason, and someone comes after you, that you take actions to avoid these things.
You don’t pay your bills, owe money to someone, or for some reason someone believes so.
After sending you a demand letter or sending it to a collection agency, they initiate a law suit in Small Claims Court. (this is under the assumption that you owe less than $25,000. If you owe more, then they can go to Superior Court and then the costs are higher)
You are served – either through registered mail, personal service, through the mail etc.
You can then respond through a defence ==> This is the problematic area. Once you are served, you have 20 days to file a defence. People need to understand this step. You can’t be embarrassed. At this point, regardless of what your status is – you should see a lawyer.
If no defence is filed, your creditor can file for a default judgment from the Court.
Once they have a judgment, they can use the enforcement remedies available: such as freeze your bank account, seize parts of your wages, or take other actions against your property.
So, what to do when you are in this situation:
You need to file a defence. This defence can say why you are not guilty of the alleged act, or why you don’t owe the money. Otherwise, it can say that you owe the money, and that you propose a payment plan.
The problem with the payment plan is that the creditor must still accept it. However, it does give you more time.Interest does still collect though.
If you fail to file a defence, and the 20 days elapses, and the creditors get a judgment, there are still steps that can be taken to get rid of this and defend. It just requires more. This is why you should speak with a lawyer.
There are other options… we can speak with the creditors, negotiate, arrange for a payment plan, use other laws to protect you, but this is why you should always speak to a lawyer.
If this happens to you, call my office, and we will arrange for a consultation at no cost.