If you have been sued then you need to answer the lawsuit. Participants in the system often have a better outcome than those that do nothing. Some of the options that you have are to:

• Attempt to Negotiate a settlement with the creditor  before the answer is due. Many consumers recognize they may owe a debt and choose to attempt to settle the debt before an answer is due to the court. The creditor is often receptive to a quick settlement rather than spending more time and money in a lawsuit. Even if they can provide some of the documentation to the court, there is always a chance they could lose.
• Answer the Lawsuit filed by the creditor. Even if a consumer thinks they owe a debt it is still up to the creditor to prove that they own the debt, have the right to file suit, and have enough documentation to prove a debt is owed. They may not be able to successfully produce all required documentation when challenged.
• Do nothing. Many people decide to do nothing for lack of funds or fear of what can happen. The creditor may take a judgment against them and then ultimately have their bank accounts frozen (bank garnishment). Judgments in California are good for 10 years initially and they carry a minimum interest of 10%. The amount of an unresolved judgment can significantly increase over time.
• Seek bankruptcy protection. Our law firm does help clients file bankruptcy. If you are interested in seeing if bankruptcy is right for you visit our site California Bankruptcy Attorney

• Many choose not to answer a debt lawsuit. In that case, a defendant (you) can expect to:
  • Possibly lose the court case.
  • Receive a default judgment In California judgments automatically are good for 20 years. They can renew the judgment and it can stay in public records for a long time. A judgment can prevent you from purchasing homes and cars and an employer may deny employment. Judgments do keep increasing in value. They carry a state minimum interest rate that judgment creditors often calculate.
  • Garnish bank accounts A judgment creditor may be able to garnish your bank account and take the money you do keep in it. Many are forced into closing their bank accounts and converting all payments to cash.
  • Possibly be denied loans and employment A judgment can prevent you from purchasing homes and cars and an employer may deny employment.