What Should You Do If You Are Served a Civil Summons for Nonpayment of a Defaulted Personal Loan?

Question from Wolfy, What Should You Do If You Are Served a Civil Summons for Nonpayment of a Defaulted Personal Loan?

Answer from AI:

If you are served with a civil summons due to nonpayment of a defaulted personal loan, it’s important to understand your rights and responsibilities. This is a serious matter that requires immediate attention.

Understanding the Civil Summons

A civil summons is a formal notice that a lawsuit has been filed against you. In this case, the lender or debt collector is suing you for the unpaid debt. The summons will typically include details about the lawsuit, such as the court where the case has been filed, the case number, and the actions you need to take.

Steps to Take After Receiving a Civil Summons

1. Don’t Ignore the Summons: Ignoring the summons will not make the lawsuit go away. In fact, it could lead to a default judgment against you, which means the court could automatically rule in favor of the lender or debt collector.
2. Review the Summons Carefully: Make sure you understand the allegations against you and the amount of debt you’re being sued for. If there are any inaccuracies, these could be important in your defense.
3. Respond to the Summons: You typically have a limited amount of time (usually 20 to 30 days) to respond to the summons. This response, known as an “answer,” should address each allegation in the complaint. If you’re unsure how to respond, it may be beneficial to consult with a legal professional.
4. Consider Legal Representation: Depending on the complexity of your case and the amount of debt involved, you may want to consider hiring a lawyer. A lawyer can help you understand your rights, formulate a defense, and represent you in court.
5. Explore Settlement Options: In some cases, you may be able to negotiate a settlement with the lender or debt collector. This could involve agreeing to pay a reduced amount, setting up a payment plan, or other arrangements.

Legal Resources

There are several resources available to help you navigate this process. The Consumer Financial Protection Bureau provides information on what to do if a creditor or debt collector sues you. Additionally, the LawHelp.org website can help you find low-cost legal aid in your area.

Remember, while this information provides a general guideline, it’s always best to consult with a legal professional for personalized advice. Laws and regulations can vary by state and individual circumstances can greatly affect the best course of action.