While enrolled in a
debt settlement program, lawsuits are a possibility rather than a probability. However, in the event you are
served with a lawsuit, we want to inform you of some basic information pertaining to the legal process and what
you can do on your own to handle the situation. Keep in mind; laws very from state to state, county to county,
and city to city, so the information provided below should not be taken as legal advice, but as simple
explanations of terms and frequently used options to resolve the lawsuit.
THE BASIC LAWSUIT
A lawsuit is
initiated when the Plaintiff files a Complaint with the Clerk of the Court. That Complaint, along with a Summons
is served on the Defendant. You can be served in person, via mail, left attached to your door, etc. Once the
Summons and Complaint are served on the Defendant it is now your responsibility to take
As the Defendant you have
several options in dealing with the lawsuit. Please note, you always have the option to seek the advice of an
attorney in your area if you are not comfortable with the process.
The last option is
to do nothing with the lawsuit. While not recommended, there are a few instances where not responding to the
lawsuit has little to no effect. However, more frequently, not responding to the lawsuit can lead to further
legal action being taken against you. Once the time from for filing an Answer expires the Plaintiff’s attorney
can file for default judgment against you. As long as they can prove you were served with the lawsuit and failed
to respond they will be granted the judgment.
With the default
judgment the Plaintiff’s attorney has several options they can pursue to recover the money owed. These options
include, but may not be limited to wage garnishment, property liens, and bank account levies. They can continue
to do this until the full amount is paid.