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how to respond to a creditor lawsuit

Steps to Take When You Are Sued by A Creditor

Whether you have a bank loan, a credit card loan, or even an unpaid medical bill, living with excessive debt can be risky. While we all have taken some debt at a given moment, it is necessary to keep track of everything that you owe.

If not, you might find yourself in a difficult situation where your creditor ends up suing you. While you should try your best to avoid such problems, you should also be aware of how to respond to a creditor lawsuit if it ever happens.

You would be surprised to know that a good majority of civil cases that the court addresses are debt cases. If you have received a letter for the same, you should follow these steps to resolve the issue:

Do Not Panic

While it sounds pretty basic, not panicking in such situations is extremely significant. As stated above, these cases are common, and if you have an unattended debt, there is a high chance that your lender will use this way to get their money back. However, if you are not in the right state of mind, you can make things even more difficult for yourself.

Do Not Ignore

Another thing that goes hand in hand with the above point is to respond to the situation. Yes, staying calm is important but that in no way means that you sit back and relax while ignoring the matter altogether.

If a creditor has filed a lawsuit against you, it means that things are pretty serious, and you need to be there to respond to it.

Additionally, you need to take court seriously and be present. Because if you miss court hearings, the final decision will ultimately be in favor of your creditor. Hence, you will lose any opportunity for negotiation.

Be Cautious

If you follow the above two steps, it will become easier for you to take things smoothly. You probably have a debt that has gone unattended for an extended period because of which the creditor had no option but to sue you.

However, this doesn’t mean that you should agree to everything that has been stated against you. Since filing a lawsuit is additional work and money for the creditor, they may include extra charges or interest in the overall cost.

Hence, be very cautious and not take liability for everything right away. However, you will need proper documentation for being in this position, which brings us to our next point.

Documentation

Documentation does not only mean asking the creditor to give you a copy of your complete account statement or other such documents. It also includes all your receipts, salary records, bills, and any other essential documents that may prove helpful in the future.

You may only need all of this if the case involves a debt that you are not in a position to attend. However, you should still keep everything to be on the safe side.

Talk to a Lawyer

Lastly, even if you think that your case is not too serious, you should at least consult a lawyer. This way, you will know the possible outcomes and be better prepared to handle the case. However, if the debt is enormous and you have no way of paying the amount back, you will probably need an attorney by your side.

For more information, speak with an experienced bankruptcy attorney – schedule your free 1-hour consultation today: https://seanflynnlaw.com/calendar/

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