I have been served

[mizzgee]

I was serve two days ago by Citibank...I'm not sure if I should respond because I don't really have a defense...I intend to file bk but I need to wait until June if possible...
I'm really depressed about it all

[GoingDown]

In most cases, if you plan on filing bankruptcy anyways and if the lawsuit is for a debt you actually do owe, and the debt is NOT beyond the statute of limitations (time-barred debt) then it doesn't make much sense to fight it in court. You will most likely end up losing in court anyways, and it costs money to file a written answer to the lawsuit (even if you do it yourself without the help of an attorney), not to mention the stress of going to court.

However, if you have assets that you are trying to protect from a judgment lien (such as real estate property, etc.), and you can afford to fight it in court, then it make sense to fight it and by doing so you can buy yourself some time before the creditor gets a judgment lien against your assets-- perhaps long enough for you to file bankruptcy.

But if you're pretty much judgment proof-- no significant assets to protect-- then I would just sit back and let them get their judgment and then when you are ready to file BK, the judgment will get wiped out anyways. Even if they start garnishing your wages, once you file BK they will have to stop garnishing your wages.

But make sure you get all of your money out of checking accounts and savings accounts, etc., and start using money orders and cash, because they will go after it once they get a judgment against you.

[Rover]

Always respond to a lawsuit. File a Motion to Dismiss. It does not cost money to respond if you do it yourself. Citibank is counting on you to not respond so that it can get a judgment against you in around 30 days.

By responding, you can buy yourself a lot of time if you need it. Also, you don't know what the future will bring in terms of when you will actually file BK.

I have stalled a Citibank lawsuit for over two years by using my rights under the court system. That has allowed me to plan my financial/bankruptcy strategy on my own terms.

[BKpreparer]

I have stalled a Citibank lawsuit for over two years by using my rights under the court system. That has allowed me to plan my financial/bankruptcy strategy on my own terms.

Outstanding!

[mizzgee]

GoingDown-I have no assets other than a joint chking acct. w/ my husband but it will be closed before the court date. I'm in PA and there is no garnishment allowed...SOL doesn't apply for any of my accts. at this point. We did file our income taxes jointly and the check should be here before the April 4th court date but I'm not sure how that would work...I only work temp since last Nov., my husband's income is the main source for us...
Rover-That seems like an option but I don't know anything about court precedings...

[keepmine]

Any reason why you need to wait until June to file?

[mizzgee]

I foolishly purchased luxury items for xmas of last year, about 2k worth. I was in a deep depression/denial about my situation and I know it won't look good to the trustee if I file now.

[keepmine]

Well, it sounds like little damage can be done if you choose to do nothing. Just be certain that your lawyer knows about the judgment and makes plans to vacate post discharge.
For sure, withdraw from all joint accounts and cash your checks at WalMart until you file.

[danaf]

You made these purchases just a few months ago and they've already served you? Wow - that is pretty fast.

[CindyLou]

answer the judgements! go to the clerk and ask for the forms. simple to do. it will buy you time and save you from having a judgemnet and your credit report.

[BKpreparer]

answer the judgements! go to the clerk and ask for the forms.

At this point there is no <judgment> to answer..Only a summons. In addition, court clerks don't have forms for answering a summons since every summons is different. It isn't like filling out a bankuptcy form...

[EveryDayAdam]

At this point there is no <judgment> to answer..Only a summons. In addition, court clerks don't have forms for answering a summons since every summons is different. It isn't like filling out a bankuptcy form...

I think he meant to say answer the summons.

To the OP: do some googling...answer the summons and show up. throw up motions to dismiss, object saying you don't recognize the debt and ask to see the signed credit agreement, object to the amounts...ask for itemized statements showing every charge, late fee and interest charge, object and say that you don't have an agreement with the collection agency who is suing you, ask to see proof that the debt is theirs, object to any and everything...everytime you object it sets a hearing and buys you another month...it also makes it more expensive for them to collect...and you might win one of the objections if they don't have the full set of documentation.

I've read some cases where the creditors drop the suits at the first sign of resistance because it's too expensive to fight the lawsuits...it doesn't make the debt go away, but it certainly buys you time.

EDIT: I did some googling and found this: http://www.attorney-in-alabama.com/not-pay-debt.html It seems to be pretty step-by-steo in layman's terms on how to go about defending yourself. The article assumes the debt is valid and is yours.

[treehugger1]

yes, in the case you are sued, ALWAYS file an answer! You do not need to be a "trained attorney" to ask questions or file motions of discovery. As a "layperson," in your circuit or district court, the local judge might asume that you are not aware of particular "formats" of filing answers or motions for discovery. You, as a citizen, are simply attempting to protect whatever rights you believe you are entitled to. I'm reading that many local and federal circuit courts go to mediation first. The parties might be able to reach a mututal agreement before clogging up dockets with debt-related suits. This does nto alwasy work in the CA's or creditor's favor, depending upon the history of yoru particualar court's mediation program.
Collection attorneys are in it to make money, and if you provide resistence, you may not be worth the chase. If you have the time, you can certainly review yoru local district court dockets and see how many cases are filed against debtors. What I've discovered in my small rural community is that most local collection agencies move toward suit, but I see very few national collections agencies, collecting on behalf of large national CC's, showing up on my local or district court dockets. I'm guessing that the cost of filing and requiring a collection attorney to show up in court far exceeds that of the potential return for creditors. Once the creditor sells your debt and it trickles down to a local CA, the rules change. But, this can take a long, long time for one CA to eventually sell your account to a local CA. Just my humble opinion. TH

[ejny65]

I think he meant to say answer the summons.

To the OP: do some googling...answer the summons and show up. throw up motions to dismiss, object saying you don't recognize the debt and ask to see the signed credit agreement, object to the amounts....

Hi EveryDayAdam: If this is all we can do for buying time thats great BUT, wouldn't this hurt us and come back to haunt us with an objection? Can they object and say that we were denying the debt at some point? makes me worried.
I am not in there yet, hopefully they won't get ahead of me and my Bk. But if they did I would love to be able to buy time without spending more money on attorney fees.

[Bandit]

I do not like S*ityBank. Though most of my debt with them is medical bills & they will not win when the judge sees it, I feel they will cause me the most problems.

OTH- it could be kind of fun to toy with them, just a little bit by objecting, showing up and asking for them to verify & resist. It is not like I have anything to lose these days.