If Everything Is Paid Off Do I Still Have to Show Up for the Court Date?

You should absolutely show up for a court date -- even if you have paid off the debt in question. Failing to appear for a scheduled court date in a debt lawsuit automatically leads to a default judgment against you. A judgment is a negative credit event and can result in garnishment of your bank account or wages, creating a nightmare that could have easily been avoided.

Process

Creditors or debt collectors sometimes file civil lawsuits to collect an unpaid debt. It all begins with the delivery of legal documents called a summons and complaint. A summons is the notice of a lawsuit and the complaint is the actual lawsuit. The summons provides instructions for responding, such as a court date to appear before a judge.

Considerations

The court will not investigate your case or monitor payments to the debt collector. Mailing the court cancelled checks or updates on the debt won't help either. As the defendant, you must appear in court on the appropriate date or file a legal motion seeking a delay or dismissal.

Settlement

Debt lawsuits are often settled before the court date, and usually the attorney for the creditor or debt collector files a motion asking for a dismissal of the lawsuit after the settlement. Courts support settlements because the agreement satisfies both parties. People facing a debt lawsuit should seek assistance from a consumer affairs attorney, if possible. An experienced attorney can file proper legal motions and negotiate a settlement with the creditor or debt collector. SmartMoney reports that debt collectors are often willing to settle for 20 to 70 percent of the balance.

Self Help

It is possible for a debtor to handle a debt lawsuit without help from an attorney. However, the debtor should obtain all agreements with the debt collector in writing and retain proof of any payments, such as copies of cashier's checks. After that the debtor should respond to any court notices about the case and use any required appearance to state that the debt is no longer valid while offering proof.