When served with a lawsuit for debt, albeit credit cards or a loan, fear takes control which causes a fight or flight response. You may be angry because the creditor said they would accept payments or were working out a plan. You may also be scared because you don’t know the first thing about the legal process and what you should or shouldn’t do. The worst thing to do is “flight” because that will only lead to a default judgment against you. The far majority of collection lawsuits end up with default judgments, which is why credit card companies are not worried about filing a lawsuit, even with little or no evidence.

Once you have been served, there are several things to determine:
1) When was the last time you made a payment on that debt?
 2) Did you enter into an oral or a written agreement?
 3) Whether the applicable statute of limitations has passed making the debt potentially uncollectible?
 4) What is the amount of the lawsuit and requested attorney fees and costs?
 5) Did they provide a copy of the contract to see if attorney fees can be added?
 6) Does the contract (if one exists) specify that mediation or arbitration must be completed prior to — or rather than — a lawsuit?
 7) Do you qualify for a waiver of the filing fees with clerk’s office (could save more than $400)?
 8) Did you consult an attorney on how to draft the answer and to include all available defenses?
 9) When is the last date to file your answer with the court and serve the opposing party?
 10) If you admit you owe the debt on your Answer, but maybe the amount is wrong or you can only make payments….then the opposing party will simply seek a judgment based on your admissions in the pleadings.