Personally, I am one of those people that like to bury my head in the sand if a problem comes up that I do not know how to handle. Maybe it will just go away.

Truth be told, it doesn’t happen that way.
Most other people are that way also. In my line of work, credit restoration and credit education, I see that every day. Here is one case in point in which ignoring the situation will definitely hurt you.

A client of mine, a few years ago, was informed that he was being sued over a business debt.  When he was afforded the opportunity to respond to the lawsuit, in writing, he did not. Normally they give you a 20 to 30 day window in which to do that.

However, he ignored it and lost – Judgment By Default. Because he did not respond, the other side won (in this case a credit card from Capital One) not because they had the documentation or the right to collect, (as that was never proven), but as a result of not responding. He now had a judgment on his record in the amount of thousands of dollars.

Now fast forward to the beginning of this year. The same law firm was suing him on behalf of the same credit card company for another business credit card debt he owed from a few years ago. He called me and I instructed him to file a response. His response included the denial of all claims made, and he made his own claims.

Within 30 days, the law firm wrote back denying his claims. We did not hear anything back until just recently. The law firm’s response (on behalf of the credit card company) was as follows: Dismissed. He no longer is responsible for this debt.

Why? As I’ve stated many times before, a creditor, whether it is the company, and even more specifically a debt collector, has the legal obligation to prove their allegations. My assumption is that they could not.

Always Respond To A Lawsuit…Always!

Here is the takeaway: Always respond to a lawsuit or you will lose by default. If you do respond, you may win.
A lot of the time the debt collector does not have the appropriate information to go forward with a lawsuit. As a matter of business, 95% of the people who are served legal paperwork do not respond and as a result, they lose. And the judgment goes on their record.

How to respond to a lawsuit is discussed in my new book


This book has been described as the GO TO book on debt Collections. Pick up a copy and let me know what you think.