Getting served with a debt lawsuit is one of the most stressful financial experiences a person can face. But here's what most people don't know: a lawsuit is not a judgment. You still have options — and acting quickly is the key to using them.
What Happens When You're Sued for a Debt?
When a creditor or debt collector files a civil lawsuit against you, you're served with a summons and complaint. You typically have 20–30 days to respond, depending on your state. If you don't respond, the court enters a default judgment against you automatically — giving the creditor the legal right to garnish your wages, levy your bank account, or place a lien on your property.
That's why doing nothing is the worst option.
Your Options When Sued for a Debt
1. Respond to the lawsuit
Filing a response (called an "answer") preserves your rights and prevents a default judgment. You don't need an attorney to do this, but it helps to understand the process.
2. Negotiate a settlement
Most creditors would rather settle than go through a full trial. A negotiated settlement — typically 30–70% of the original balance — resolves the lawsuit and prevents a judgment from being entered.
3. Use civil mediation
Mediation is often the fastest and most cost-effective path to a settlement. A professional mediator negotiates on your behalf, helping both sides reach an agreement that dismisses the lawsuit entirely.
What a Court Judgment Means for You
If a judgment is entered against you, the consequences can follow you for years:
- Wage garnishment (up to 25% of disposable income in most states)
- Bank account levies
- Property liens
- Damaged credit score
- Public court record
Avoiding a judgment — through settlement or mediation — protects you from all of these outcomes.
How Block Judgments Can Help
Michael Levin has helped hundreds of individuals and small business owners settle debt lawsuits before a judgment was entered. With a 95% success rate and a flat fee of $1,000–$2,500, Block Judgments offers a clear, affordable path to resolution.
If you've been sued for a debt, don't wait. Book a free 30-minute consultation to understand your options and take the first step toward resolving your case.