What If You Are Sued?
CONTACT AN ATTORNEY IMMEDIATELY!!!
The one thing collectors and their attorneys absolutely love the most is a debtor who fails to respond to a lawsuit. If you fail to respond to a lawsuit, you will lose by “default,” much the same as if a team fails to show for a game; the other team wins by default. A default judgment can be issued if the debtor fails to respond in writing to the court and opposing counsel within 20 days of receiving the summons and complaint.
In Washington State, many debt collectors will serve the Summons and Complaint prior to filing with the court. Therefore the summons and complaint will not have a case number when the debtor receives them. Often times, debtors will call the court to inquire about the case. However, because the case was never filed with the court, the clerk informs the debtor that no case exists. The debtor then mistakenly believes that no response is required. (This is perfectly legal in Washington State.)
Then, when the debtor fails to respond to the complaint within 20 days, the debt collector files the summons, complaint, and a motion for default judgment with the court, without providing the debtor with further notice. The debt collector obtains an order of default judgment and now has a valid judgment against the debtor.
Typically, the debt collector will then wait more than one year to attempt further collection upon the judgment. The debt collector does this for two important reasons. The first is because it is more difficult to undue a judgment more than one year after the judgment was issued. The debt collector therefore benefits from “hiding” the judgment from the debtor for at least one year after it is issued. The second reason is to allow interest to accrue on the judgment. The minimum interest for a judgment in this state is 12%. The interest can be higher if the contract and the judgment authorize a higher rate of interest.
Therefore, the number one most important thing every debtor must do after receiving a summons and complaint is to CONTACT AN ATTORNEY IMMEDIATELY.
The very least your attorney will be able to do is slow down the debt collector and prevent a default judgment. Even if you owe the debt, your attorney will likely be able to obtain beneficial repayment terms if contacted prior to the issuance of a default judgment.
On the other hand, debtors can be absolutely positive that if you allow a default judgment to be entered against you, the collector will use that judgment to lien your assets, garnish your bank account, and garnish your pay check.