This week I have talked to several people who have said that when they were sued they “called the creditor and worked it out so they didn’t have to attend the hearing” but it turned out that a judgment was entered against them anyway. If you are sued by a creditor, you must understand that the neither the creditor nor the creditor’s attorney is on your side. While it may be true that they will work with you on a payment plan, that doesn’t necessarily mean that they stop the lawsuit. While they are “working it out”, they may also be asking the court to place a judgment lien on you, which can be a lien on any real estate you own such as your house., and it can also be the basis for seizure of other personal property or bank accounts to satisfy the debts. In some states, the judgment can lead to garnishment of wages.
Too many people think that calling and speaking to the creditor or their lawyer will solve the problem. It doesn’t. There is still a suit in the court system, and it has to be resolved. If an answer isn’t filed, the court will only have the facts in the lawsuit to consider, and the court will assume that the creditor’s facts are true. That is the basis for the creditor to get cause a default judgement to be entered
