If you don't have a defense or counterclaim and the creditor can easily prove its case, then you'll lose. You'll then owe the judgment amount, have to pay your own attorney, and might have pay the creditor's attorneys' fees too. (In some types of cases, the losing party has to pay the other side's attorneys' fees).
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Jan 15, 2020 · (1) the court can put you in jail, fine you, or both, for not answering the creditor's financial questions after you were ordered to by the court; OR (2) if you give the court a good reason for not responding to the creditor's questions, the court can extend the period for you to …
When a creditor sues you to collect debt you haven't paid, you have three choices to deal with the lawsuit: 1 allow the creditor to obtain a judgment against you (called a "default judgment") 2 defend the lawsuit yourself, or 3 hire an attorney to represent you in the lawsuit.
allow the creditor to obtain a judgment against you (called a "default judgment") defend the lawsuit yourself, or. hire an attorney to represent you in the lawsuit. Which option is best for you will depend on a number of factors.
If bankruptcy might be inevitable, think twice before using retirement funds to pay bills. Most people can keep their retirement account in bankruptcy.
A counterclaim is a claim that you have against the creditor. In most states, the counterclaim must relate to the transaction at issue in the creditor's lawsuit. For example, say the creditor sues you for nonpayment of a credit card debt.
In most states, the counterclaim must relate to the transaction at issue in the creditor's lawsuit. For example, say the creditor sues you for nonpayment of a credit card debt. You might be able to file a counterclaim alleging that it harassed you in trying to collect the debt.
A defense is a reason why you aren't liable for the debt or a reason why the creditor shouldn't be allowed to collect the debt. Here are some common defenses to creditor suits: the statute of limitations (the time period in which the creditor must bring the lawsuit) has run.
But, there is a big exception to this rule: Creditors don't have to sue first if the debt is guaranteed by collateral.
And a creditor can't just take money from your bank account or grab your tax refund—unless you owe back taxes or you've defaulted on a student loan. To collect a debt, the general rule is that most commercial creditors must first sue you and win a money judgment (a court award) against you.
Although a judgment creditor can usually grab cash from your bank account or force the sale of most business assets, a judgment creditor can't take personal property that is legally exempt from creditors. Most states provide that a certain amount of your personal assets, such as food, furniture, and clothing, cannot be taken by creditors or by the bankruptcy trustee in bankruptcy court. In addition, most states exempt from creditors: 1 the equity you own in one vehicle, up to a certain amount—commonly from $1,000 to $5,000, and 2 a significant amount of the equity in your house—often between $10,000 and $50,000, depending on the state.
First, know that you can't be thrown in jail for not paying your debts (with the exception of back child support, if you could pay but don't). And a creditor can't just take money from your bank account or grab your tax refund—unless you owe back taxes or you've defaulted on a student loan. To collect a debt, the general rule is ...
Many businesses owe secured debts—businesses typically pledge collateral for credit lines, and business owners often pledge their personal property for business debts. Let's take a look at how quickly lenders can call in or foreclose on collateral when a secured debt is not paid.
A secured creditor is any creditor to whom you or your business has pledged collateral in exchange for a loan, line of credit, or purchase. Collateral might be business property, such as inventory and equipment, or your own property, such as your house, car, or boat.
As you probably know, if you miss a payment or two on your car loan (and, as is typical, the loan was used to buy the car and is secured by the car), the lender has the legal right to physically repossess the car and sell it to recover the money you owe, plus the costs of the sale and attorney's fees.
If you need help responding to a lawsuit for nonpayment of a debt, consider hiring a lawyer. But keep this in mind: If it costs more to hire a lawyer than what the creditor seeks in the lawsuit, it makes little sense to seek attorney assistance. Talk to a Lawyer.
In some courts, however, you will be sent a notice of a settlement conference before the trial date. Be sure to attend the settlement conference or trial. If you move, make sure you notify the plaintiff and court of your address change. Non-routine cases.
Discovery refers to the formal procedures used by parties to obtain information and documents from each other and from witnesses. The information is meant to help the party prepare for trial or settle the case. In routine debt collection cases where you don't have any defense, don't expect the plaintiff to engage in discovery. Discovery can be expensive, and, quite frankly, there is often nothing for the plaintiff to "discover." You owe the money. You haven't paid. (Read about different options for dealing with your debt .)
Deposition. A proceeding in which a witness or party is asked to answer questions orally under oath. A court reporter is present and takes down the entire proceeding. If you schedule a deposition of someone, you will probably have to pay for the court reporter, which can be very expensive.
A request from one party to the other to hand over certain defined documents. If you are adamant in your defense of a lawsuit that you paid the debt, the other side will most likely request that you produce for inspection (and copying) a check, money order receipt, or other document supporting your assertion.
A request by one party to look at tangible items (other than writings) in the possession of the other party. For instance, if you raise as an affirmative defense that the painter who sued you spilled paint on your rug and it cannot be removed, the painter may request to inspect the rug.
Several states and the federal court system require that the parties come together at least once before the trial to try to settle the case. To assist you in settling, you'll be scheduled to meet with a judge or attorney who has some familiarity with the area of law your case involves. You don't have to settle, but the judge or attorney will usually give you an honest indication of your chance of winning in a trial.
If a Creditor Takes You to Court for Unpaid Bills. You will not go to jail because you cannot pay your bills. If a creditor takes you to court the creditor must “ serve notice .”. He must hire a sheriff or constable to deliver a summons and complaint to you.
You will not go to jail because you cannot pay your bills. If a creditor takes you to court the creditor must “ serve notice .”. He must hire a sheriff or constable to deliver a summons and complaint to you. The complaint explains who is taking you to court and why. The summons tells you when and where you need to go for a hearing or ...
It is always a good idea to get legal help . If the creditor or debt collector has broken any laws, you may not have to pay the whole amount. You may not have to pay anything if your income is "protected". You may be able to get help.
The summons tells you when and where you need to go for a hearing or when to answer the complaint. For small claims court you can, but do not have to file an answer. But you have to show up at court on your trial date. Your answer is your chance to explain what happened. Find out:
You Respond. The summons should set a timeframe for when you need to respond to the creditor’s complaint, but it’s usually within 30 days or less. If you want to fight the lawsuit, your response should cite any and all applicable defenses.
Summary Judgement. If your response didn’t do an adequate job offering a defense, the creditor may ask the court to issue a summary judgment and rule in their favor. You should have an opportunity to file a response to the creditor’s motion for a summary judgment.
It’s entirely possible that you ignore a debt forever and the consequences never go beyond repeated phone calls and letters. There are costs associated with taking a case to court, after all, so the debt needs to be worth the effort and the cost.
The summons is basically a notification that you’re being sued, and should provide some direction on the steps you need to take to address this.
Depending on the rules of the court, the summons may need to be hand-delivered, or it may simply be mailed with a form you can send back, acknowledging that you received the summons. There’s no benefit to ignoring a summons or making it difficult for the summons to be served.
If you don’t respond in the given timeframe, the creditor can then ask for a default judgment. If the court agrees, the creditor has essentially won the case and will be able to collect the judgment amount, usually through a wage garnishment .
Settlement Conference. You may be required to attend a settlement conference in the hopes of preventing the case from going to trial. If you reach a settlement agreement, there’s no need for a trial. If you decide not to settle, the case will likely proceed to trial.
It's common for attorneys' fees to be awarded when the contract at issue requires the losing side to pay the winning side's legal fees and costs. This usually occurs in a business context where the parties have specifically included an attorney fee requirement in a contract.
Whether an exception to the "American Rule" will apply will depend on the type of case you're involved with and the state in which you live. For instance, you might have to pay when: 1 a contract provision calls for the payment of attorneys' fees, or 2 a statute (law) specifically requires payment of attorneys' fees by the losing side.
(In law, equity generally means "fairness," and an equitable remedy is a fair solution that a judge develops because doing otherwise would lead to unfairness.) This type of equitable remedy—granting attorneys' fees to the winning side—is often used when the losing side brought a lawsuit that was frivolous, in bad faith, or to oppress the defendant, and the defendant wins.
a contract provision call s for the payment of attorneys' fees, or. a statute (law) specifically requires payment of attorneys' fees by the losing side. If you're concerned or hopeful that your opponent will have to pay attorneys' fees, check (or ask your lawyer to check) if any exceptions apply to your particular case.
The consequences could be a fine, jail, fine and jail or just a reprimand with another Order to pay. If a reprimand with another Order, you might want to consider the consequences of not obeying the Courts Order for a second time. You may also have to pay her attorney fees if she has to go to Court to enforce the original Order.
If you cannot pay because you don't have the money, you may ask for a payment plan or other accommodation, or may be able to work out an arrangement directly with your ex's attorney . However, failure to pay because you don't feel like it will likely result in an enforcement action, which can result, if you continue to refuse to pay, ...
Contempt means that you can be held in the custody of the sheriff for up to 6 months.