What To Do if You Are Sued for a Debt
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Being sued over a debt can feel overwhelming, but you have rights and options. You may have received court papers, called a summons and complaint, or only found out about a lawsuit after money was taken from your paycheck or bank account.
Acting quickly is important because ignoring a lawsuit can lead to a court ruling against you. This guide explains how debt lawsuits work, how to respond, and how to protect yourself. The steps below that have a blue arrow link to more detailed articles on those topics.
Know whether you are being sued in small claims court or circuit court.
If you've been given papers saying "Small Claim and Notice of Claim" and "Small Claims Department," your case is in small claims court.
- Small claims court is for disagreements over money or personal belongings worth $10,000 or less. It offers a simpler, lower-cost way to resolve disputes in court, and in most cases, neither side can have a lawyer.
- If you're being sued in small claims, read our guide to small claims court here.
If your papers say "summons" and "complaint," your case is in circuit court. Continue reading this guide.
Know your deadline to respond.
You have 30 days to respond after being given the summons and complaint.
Day 1 is the day after you were served.
Count all days on the calendar, including weekends and holidays.
The 30th day is your last day to file your response.
If the 30th day is a weekend, holiday, or day the court is closed, your deadline moves to the next business day.
If you miss this deadline, the person suing you can ask the court to automatically decide in their favor.
Go to court or consider settlement.
After you file your response, the court may set a hearing or trial date.
- Consider using the time to negotiate: a debt collector may agree to a payment plan or a single payment of less than the total amount owed.
Make sure not to miss court dates. Failing to show up can result in losing by default. Learn more about preparing for court in this article.