This toolkit tells you what you can do if someone has sued you to collect a debt. For general information about this process and your options, read the Articles. Read the Common Questions if you have a specific question. If you want to respond to the complaint you received, use the Forms link to prepare your forms. The Checklist below has step-by-step instructions for responding to a complaint on a debt. Go to Courts & Agencies for information about the court or agency that will handle your case.
You'll find links to legal aid offices and lawyer referral services under Find A Lawyer. If there is a Self-Help Center in your area you can get more help there. If you need something other than legal help, look in Community Services. If you need a fee waiver, an interpreter, a court to accommodate your disability, or more information about going to court, visit Going to Court.
Common Questions
You can file an answer. You have 21 days to respond if you’re personally given the papers. You have 28 days to respond if you get them in the mail or you get them outside Michigan. Read the article Going to Court to Defend a Debt Collection Case to learn more about how to answer.
If you do not respond in time, your creditor can get a default or default judgment against you. Look at the Setting Aside a Default or Default Judgment in a Debt Collection Case toolkit to learn more about defaults and default judgments.
You can also try to work out an agreement with your creditor. If you and your creditor agree after you get the complaint, you can sign a Consent Judgment or agree to have the case dismissed. It is a good idea to contact the court to see if you need to go to a hearing to tell the court about your agreement otherwise your creditor could get a default judgment against you.
You might be uncollectible if all of these conditions apply to you:
- You have limited income that only comes from specific sources
- You have limited assets and/or savings
- You don’t have any money left over after you pay your bills to pay your debts
Read the article Are You Uncollectible? to learn more.
You can send a creditor or debt collector a letter asking they stop contacting you about the debt. You can also send a letter explaining that you are uncollectible and asking for a “charge-off” of the account as a bad debt.
Getting a charge-off does not mean the debt is discharged. You still owe the debt. Having a charge-off on your credit report can do significant damage to your credit score. Your creditor can still try to sue you to collect the debt.
Read Are you Uncollectible? to learn more.