How to Make Payment Arrangements After Being Sued
Being sued is always frightening, but it is important to stay calm and rational even in the face of being served with a lawsuit. Most lawsuits deal with unpaid debts, whether to another person or a business like a credit-card company. When someone files a lawsuit, he is usually frustrated and merely wants his expected payment. If you do owe the money but cannot pay it in full before your court date, you should try to make payment arrangements with the person or company that is suing you.
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Instructions
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Call the person or business that is suing you. Ask politely if you can make arrangements to pay the debt in installments. Propose what you feel works for you, such as $100 a month for 12 months to pay a $1,100 debt. If the individual or company is agreeable, ask to get the arrangement in writing. Usually, they will send you a fax or a letter in the mail.
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Go to court as scheduled on your lawsuit hearing date. Explain to the judge that you and the plaintiff (the person suing you) have made payment arrangements. The judge will likely continue the case until a date after the end of your agreed-upon payment period.
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Realize that person or business who is suing you may refuse payment arrangements. Do not become angry; instead go to court on your lawsuit hearing date. Explain to the judge that you made a good-faith effort to repay the debt, and that the plaintiff refused to co-operate. The person who is suing you will likely be asked to explain his refusal of your attempts to work out the situation without involving the court system. In many cases, the judge may help the two of you come to an acceptable agreement, and will hold another court hearing after that payment period ends.
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Tips & Warnings
Remember, the worst thing you can do when you are sued is to ignore the situation. If you do not try to make payment arrangements either before court or on the day of court, the judge will grant the plaintiff's lawsuit. This will appear as a judgment on your credit report, which is a serious negative entry, and the judge may allow the winner of the lawsuit to garnish your wages for repayment.
Do not pay anyone who has sued you outside of court without getting an agreement in writing. Always get receipts and/or keep canceled checks or money-order receipts when paying toward any debt that is now involved in the legal system.
