With the financial stresses of today, many people can't pay their bills. This results in calls from creditors, letters from lawyer's offices and, eventually, a court summons.
Time Frame
If you get a summons, you are probably more than a year behind on debt payments. You have 20 to 30 days to file an answer to the lawsuit to preserve your legal rights.
Filing the Answer
Go to the clerk of the circuit court's office and ask to file an answer. They will have a form for this. Complete the form stating all of the reasons that you deny the claim. Or, you can file a general denial, just stating that you want a hearing.
Settling
The answer will buy you some time to get some money together and to negotiate a settlement. Creditors will settle many debts for 20 to 50 cents on the dollar. Try to negotiate this yourself to keep the case from court. If you owe the debt, you will probably lose.
If You Have No Money to Pay
If the creditor wins the lawsuit, you may be judgment proof. This means that any assets or income you have are under your state's exemption amount. This varies by state and could make it impossible for the creditor to collect.
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