What can I do if I'm being sued for my debt?

Question

A company is suing me for $1700.  I am not employed and cannot pay an attorney.  Under state law, what can they do against me? Do I have to show up for court even if I cannot pay?

Richard Copeland · Answer

If you owe the money, the company is entitled to collect it, court costs, interest, and attorneys fees. In light of your situation, you may be able to work out a deal. You do need to attend court. You can explain your situation to the judge, and that might facilitate entering into an agreement to allow you to pay the debt over time when you have the ability to do so.

David Stoddard · Answer

They can get a judgment against you. The judgment will be good for 10 years. If you do not pay the judgment, they can take you to court, inquire into what assets you own and ask the court to sell assets at public auction to pay off the debt. Some assets are exempt from the power of the court to attach an sell. For example, you can have a certain amount of equity in a house that is exempt (I believe the current exemption for a house is $50,000).  You can have a certain amount of equity in a vehicle and other personal property.  As a practical matter, most individual are considered "judgment proof" if they do not own real estate with equity exceeding $50K. By this, we mean that you cannot collect a judgment against them. If you truly owe the money, there is little to gain from resisting the case. You do not even have to appear in court. However, with some debts, the court can include attorneys fees.  It may help minimize the judgment if you contact the attorney who brought the case an offer to confess judgment.

Jeffrey Wittenbrink · Answer

The company can sue you  and obtain a judgment against you, even if you do not show up.   If this is for a consumer debt or "open account" (credit account for goods or services), the judgment may be for more than you originally owed, and may include interest, attorney's fees and court costs-which can run up the amount of the debt considerably.  After a judgment is obtained, it is normally recorded, and will act as a lien on any property you own in the parish where it is recorded.  The creditor may execute on the judgment by seizing property you own, including money you may have in bank accounts, etc.  There are certain items you may have which are exempt from seizure, depending on who is holding the debt, and whether or not you have given collateral for the debt in the form  of a pledge of property such as furniture, etc. Collection action will continue until the creditor seizes enough property to pay the debt, until you make payment or settlement arrangements,  until you file for bankruptcy protection, or until the creditor simply either sells your debt to another person or gets tired of trying to find your property to seize.  If the person uses unfair collection techniques, such as calling you late at night or early in the morning, calling you at work after you have asked them not to, calling and harassing your family members or neighbors, you may have the right to sue them as well.  If you cannot afford an attorney, there are civil legal aid services sponsored by the Legal Services Corporation all over the country.  Those firms specialize in helping poor people with legal problems.  You may also wish to contact your local or state Bar Association regarding volunteer lawyers who work for free or "pro bono".

Steven D. Dunnings · Answer

If you do not dispute the amount claimed, showing up will not help much unless you have assets to protect (paycheck, bank accounts, other sources of income) , then you would want to request an installment payment plan to prevent a garnishment of your wages, bank accounts etc.

Michael Mckell · Answer

Yes you absolutely need to show up!  If you fail to show up a default will automatically enter against you.

Thomas Bulman · Answer

Send a written denial to the court and make them prove it.  Don't default, which means ignore it.  Fight it.  Then you can maybe negotiate the debt down as the case drags out.

Timothy Klisz · Answer

You should speak to the attorney and try to work it out.  If not, they  will enter a default judgment against you and come after you for the  next 10 years or more, unless you declare bankruptcy.

Houston D. Smith III · Answer

You should show up for court and see if you can work out a deal with them.  If you don't show up, then the court will issue a judgment against you which will probably include attorney fees for the other side which will make your debt even higher.  Once they have a judgment they can levy on the judgment and use the legal system to take your assets.

Stephen Lombardi · Answer

If you don't file an Answer and show up to court the judge will   enter a judgment against you for whatever they ask to be awarded. You'd better   at least enter an Answer denying the debt and then show up to court.

Steven Fink · Answer

If you do not show up they will get a default judgment against you.  If you show up they might not and judgment will be in your favor.  If they show up, Court might permit judgment to be paid in small monthly payments.

Paul Whitfield · Answer

If you don't show a judgment will be entered plus court costs and interest This will be on your recoprd for 10 yrs. If you don't have a car or other property sheriiff will not be able to collect

Andrew Velonis · Answer

First, the question is:  do you owe the money?  Do you agree with the amount that they say you owe?  Next, it depends what part of court you are being sued in.  If it is small claims, you have to show up if you intend to contest it.  More likely, it is in City Court, and you don't have to show up, but if you do contest whether you owe the money or how much, you have to send the creditor's lawyers a written statement itemizing the numbered allegations that you disagree with and why.  Bottom line, they will probably get a judgment against you.  It stays there for 10 years or until you pay it off. They can also renew it for another 10 years.  During that time, they can seize any bank accounts you have, garnish 10% of your wages and make it impossible for you to get a mortgage.  They can sit on it and spring it on you sometime down the road.

Tina Fox · Answer

Yes you should show up to court. If you do not a default judgement will automatically be entered against you. You need to at least let the court know what is going on with you.

Steven A. Schwartz · Answer

If you owe the money, then you owe the money.  Whether you are employed or not is not a reason to ignore the court appearance.  You should show up in court and explain your situation.  Perhaps a reasonable payment plan can be made that works for you and the other side.

David Ayer · Answer

Your income is irrelevant to the merit of the suit against you. It will, however, be relevant once they try to collect on any award the court gives them. It is generally a bad idea to not appear in court. Whether not appearing is a viable option for you will depend largely on the nature of the suit. You should check with a lawyer referral service in your area to see if there is a civil defense attorney willing to hear the specifics of your case and advise you on the wisdom of allowing the company to get a default judgment.

Dean Esposito · Answer

You need to pay it or contest it. If you do not contest it, they will obtain a  judgment against you by default and, once they do so, can garnish income or  seize assets to satisfy the judgment. If it is small claims court, many have forms such as an "Answer" that you can  simply execute and file to prevent them from obtaining a default judgment  against you. Call the clerk of court and ask if they have such forms.

Bernard Huff · Answer

Yes, you should appear in court even if you can't pay. If not, at the least,  youget a default judgment against you which may increase the amount you owe  with added costs..

Michael Heilmann · Answer

You must file an answer or you will be in default and a judgment will be entered against you. Whether or not you work is irrelevant. Don't let them take a judgment as it might be more than the amount you owe.

James Kelaher · Answer

They can get a judgment against you so you better show up for court.

Jared Altman · Answer

You can call them up and try to settle. If you cab't pay anything. Then you can offer a confession of judgment for a lesser amount. It would make no sense to confess a judgment for the full amount.

Travis Siegel · Answer

It is a good idea to show up to court regardless of your ability to pay.  The court will appreciate you showing up more than if you simply failed to appear.  When you show up, the court may tell the attorney on the other side to work out a payment plan or some other options so you're not burdened by the debt.  Plus you can explain the situation to the court and opposing attorney.  If you don't show up, the court will most likely enter judgment against you for the full amount. The company will then have a court order in their pocket when they try to collect the debt from you.  It is an uphill battle from that point because you will have a judgment awarded against you.

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