What do I do if I’ve been sued?

There are a number of reasons that you can be sued in civil court.  If you fail to pay your credit card bill, then often you are served with a lawsuit after about 4-6 months.  If you have a home that is sold at a foreclosure sale, then the bank typically sues you on the deficiency.  In other words, if you owe $200,000 on the mortgage, and it sells for $160,000 at the foreclosure sale, then the bank typically would sue you on the $40,000 deficiency.  The same thing occurs if you have a car repossessed and the dealership resells it at less than what you still owe.

If you are sued, then you need an attorney.  You have a very limited amount of time to file an answer, or you will suffer a default judgment.  Sometimes, a General Denial Answer is not adequate, and you need to file a Verified Denial.  The clerks cannot give you legal advice, so you need to consult with a lawyer.

Filing Chapter 7 bankruptcy or Chapter 13 bankruptcy will typically allow you to discharge the debt alleged in the lawsuit.