Making a Deal With a Debt Collector After a Lawsuit is Filed Against You

You have been sued by a debt collector.  You have been served with a Complaint.  You contact the debt collector (Plaintiff) to work out a deal.  The debt collector says “pay me $X.XX today and $X.XX per month and I will make the lawsuit go away.”  You make the payment and arrange for a deduction from your bank  account in the requested amount per month.  You assume that the lawsuit is over….

DON’T!!!

Never assume that a debt collector will withdraw or dismiss a complaint because you worked out a payment arrangement.  You should always follow up with the court where the complaint was filed to see if the complaint was withdrawn or dismissed.  If not, you must (even though you worked out a deal) file a response or a default judgment will be entered against you.   See this post for what happens after a judgment is entered against you.

If you have been sued by a debt collector, you should contact an attorney to discuss your options.  Never ignore a lawsuit that has been filed against you and never assume a debt collector will take any action for your benefit!

If you enjoyed this post, make sure you subscribe to my RSS feed!