When a person owes money that he is legally obligated to pay but is unable or unwilling to pay, then his creditor may choose to take him to court by filing a lawsuit. The judge will then issue a ruling on the case declaring whether the debtor owes the creditor money and, if so, how much. What percentage of debtor's lawsuits end up in court depends on a number of variables. According to the "New York Times," between 80 and 92 percent of civil cases are settled out of court.
Lawsuits
When a debtor owes a creditor money and the creditor chooses to sue, then several things can happen. First, the threat of a lawsuit may compel the debtor to settle out of court. Second, the lawsuit may be filed but then withdrawn, often because a settlement has been worked out. Third, the lawsuit may be issued, but dismissed before it can go to court because it is ruled invalid.
Numbers
There are no reliable numbers on exactly what percentage of debtor's lawsuits end up in court, as it is difficult to determine exactly how many lawsuits are actually filed that are related to debt and how many are settled out of court. Lawsuits that are never filed but merely threatened are not part of the public record. However, it can be guessed when a lawsuit will be filed. However, civil lawsuits that go to trial happen less frequently now than they did before. According to the "Virginian-Pilot," the decade between 1999 and 2010 saw a 72 percent drop in the number of jury trials in the state.
Financial Factors
Generally, whether a lawsuit is filed and whether the defendant and the plaintiff can reach a settlement out of court will depend on each party's financial situation and the strength of their relative cases. For example, if one party has a strong case and enough money to pay attorneys to represent him, he may be more likely to push for the case to be heard in court, as he expects he will be vindicated, thus saving him money in the long run. According to the "New York Times," in cases in which the defendant passed up a settlement, he paid out more money in the trial only 24 percent of the time; by contrast, the plaintiff who passed on a settlement before trial made more money in a trial only 39 percent of the time.
Other Variables
No two debt lawsuits are the same. A lawsuit over a failure to pay a payday loan requires extremely different legal procedures than a lawsuit over a person's failure to pay a mortgage. Also, each jurisdiction has its own laws, which affect what cases are heard in court. Therefore, to accurately guess the odds a specific lawsuit going to court, a person should consult an attorney.
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