You only have a short time to respond to an Oklahoma debt collection lawsuit. If you have been served with notice of a lawsuit, it’s essential to act promptly and protect your rights. Failing to respond at all can have serious consequences. We highly recommend contacting an Oklahoma debt relief attorney for advice about responding to a debt collection lawsuit.
What Is an Oklahoma Debt Collection Lawsuit?
When a debt goes unpaid, a creditor has five years to file a lawsuit in an Oklahoma court against the debtor, seeking payment of the debt. The law allows a creditor to obtain a legal judgment against a debtor for a proven unpaid debt and then use the court order to take collection steps, such as garnishing wages or levying bank accounts.
To pursue a legal judgment, the creditor must file a lawsuit by preparing a summons and petition and submitting them to an Oklahoma court. The summons and petition are the legal documents that initiate the lawsuit and explain why the creditor is suing the debtor. Once the creditor files the lawsuit, it must serve the debtor with a copy of the summons and petition, providing them with notice of the lawsuit. The debtor has only a short time to respond to these documents after being served, as described below.
Responding to an Oklahoma Debt Collection Lawsuit
If you have been served with an Oklahoma debt collection lawsuit, you must act quickly to respond. You have only 20 days after you have been served to file an answer with the court. In this short period, it is a very good idea to consult with an Oklahoma debt relief lawyer to learn about your rights. A lawyer can advise you on debt relief options such as filing for bankruptcy or trying to negotiate a debt settlement. Moreover, a lawyer can help prepare the answer to ensure it meets legal requirements. A lawyer can also ensure that the answer is properly filed with the court and served on the creditor.
Default Judgments in Oklahoma
If you don’t respond to an Oklahoma debt collection lawsuit within 20 days after being served, the creditor can seek a default judgment against you. The court can grant a default judgment when a defendant does not respond to a summons and petition that was properly served on them. Effectively, it means that the creditor wins the case against the debtor.
Even worse, once the creditor gets the default judgment, it can pursue aggressive debt collection tactics. The creditor (or a debt collector working on its behalf) could seek to garnish your wages by notifying your employer of the debt. The creditor could try to levy your bank accounts to collect money to pay off the debt. These collection efforts could leave you in a bad financial situation.
If you are dealing with a default judgment and creditor collection efforts, filing for bankruptcy or seeking other debt relief could help. When you file for bankruptcy, creditors must stop all collection efforts while the court assesses your financial situation. This automatic stay can give you some much-needed breathing room. Then, the court will begin the process of liquidating or reorganizing your debts (depending on which type of bankruptcy you file for). Many people find that bankruptcy provides the fresh start they need due to debts they cannot pay back.
Frequently Asked Questions
How long do creditors have to sue me for unpaid debts?
Creditors have 5 years to sue for an unpaid debt. However, if you make any payments on the debt over time, a creditor may argue that the 5 years start over again. And some unscrupulous creditors try to sue even after the 5 years have passed. Talk to a lawyer to learn more about your rights if you have an unpaid debt.
Why do I need a lawyer to answer a debt collection lawsuit?
The short answer is due to the risk of a default judgment if you improperly file an answer while unrepresented. As explained above, a default judgment can have serious consequences, such as wage garnishment. It’s best to seek legal representation from an experienced debt relief lawyer as soon as possible after you learn of a creditor lawsuit. Your lawyer can ensure that your answer is legally complete and filed in a timely fashion.
Debt Collection Lawsuit? Get Legal Help Today If a creditor has filed a debt collection lawsuit against you, you need trustworthy legal advice about your options. Our debt relief team has been helping Oklahoma City metro area clients tackle big financial challenges for more than 29 years. Chris Mudd & Associates PLLC will get started by speaking to you in a free initial consultation. Text us or fill out our contact form today so we can help you get your life back in order.