Sued by Citibank for Debt?

If you have been sued by Citibank, it means that they have taken legal action against you in an attempt to collect a debt that they claim you owe. When you are sued by an original creditor, it is crucial to take the matter seriously and respond appropriately when being pursued by Citibank for unpaid credit card debt.

Don’t Ignore the Lawsuit Papers

 Ignoring the debt collection lawsuit will result in a default judgment against you followed by potential garnishment of your bank account or wages depending on state collection laws.  This is more serious than a simple collection letter.  It’s a Court process that could give Citibank the power to take some of your assets or put a lien on property that you own.  A debt lawsuit is much more important than simply having a negative mark show on your credit report.  A low credit score is not nearly as critical as a default judgment for not responding to a debt collection lawsuit. You must have a debt collection defense strategy.

Hire an attorney on a Flat Fee

 When legal action has been taken, navigating the Court process for a debt claim can be complicated when served with a debt collection lawsuit.  Getting legal advice is key.  Additionally, you will likely be required to appear in Court one or more times. If you hire an attorney they will likely be able to appear for you. You should know what the fee is going to be and avoid paying a lawyer by the hour since this could get very expensive.  Being a defendant in a debt collection lawsuit is not a fun process.

File a Response to the Complaint

When you are sued by a plaintiff original creditor like Citibank on an alleged debt, You must respond to the lawsuit by filing an answer with the court within the specified deadline (usually 14-30 days from service). The deadline varies depending on what Court the case was filed in. In your answer, you generally must deny the allegations of Citibank or you will admit the debt.

Plead Your Defenses

  Responding to a Citibank lawsuit is crucial, as it is with any debt-related lawsuit. In your response, you should assert any valid defenses, such as disputing the accuracy of the debt, claiming the debt is beyond the statute of limitations, or stating that you are not the responsible party. As the defendant, it is essential to properly assert your defenses. Citibank might lack adequate documentation and if this is the case, you need to clearly explain this to the judge

Comply with Court Orders

Follow any court orders or judgments. Failure to do so can result in additional legal consequences.  This is different from the debt collection laws that creditors must follow prior to the debt collection lawsuit being filed.

Prepare for Trial

A debt collection lawsuit often ends up in trial.  If negotiations fail and the case goes to trial, work with your attorney to prepare a strong defense and gather evidence to support your position.  This is why it’s important to get sound legal advice when faced with a debt collection lawsuit filed by a debt collection agency like Citibank Many times they have not provided adequate documentation.  When they buy debt as a original creditor they are required to provide some documentation at trial.

Negotiate a Settlement

Citibank lawsuits are serious if you don’t handle them correctly. Your attorney may be able to negotiate a favorable settlement of the claim as opposed to leaving it up to the judge at trial. This is often a wise resolution to eliminate the risks of trial but you must make sure there is a valid written settlement agreement to ensure the bad debt is actually resolved.   The last thing you want is to settle then have Citibank come after you later claiming more unpaid debt. 

Consider Bankruptcy

If you have more debts other than just Citibank debt you should consider Bankruptcy as an option.  A Bankruptcy an relieve your obligation of Citibank lawsuits and other bad debt.  This includes credit card debt and other consumer debt.   At Weston Legal we offer a variety of debt relief options in select jurisdictions.  Contact us to see if we can assist with your situation.