Can a Person File a Lawsuit Against You When You Owe Money?

Basics

• In the lawsuit, the individual filing the suit is the plaintiff and the individual being sued is the defendant. Once the defendant has been served the complaint, he has 35 days to answer. When the defendant owes the plaintiff money for two years, the plaintiff cannot sue the defendant, due to the Statute of Limitations.
  
  

Initiating the Claim

• When the plaintiff sues the defendant for money owed, the plaintiff must prove the claim in court. He can consult with an attorney, who will give the evidence needed to prove the claim. The plaintiff begins the lawsuit with a complaint form called a “Statement of Claim.” He must give information on the nature of the problem. Before filing the lawsuit, the defendant must be officially notified of the lawsuit filed against her, called the “Service of Process.” The defendant also receives a “Notice to Appear” form. The defendant can receive the notice in the mail or a sheriff can be paid to deliver the notice personally.
  
  

Pretrial Hearing

• There is first a pretrial hearing. If the defendant does not come to the pretrial hearing, the court enters a default against the defendant and the judge can then determine whether there is sufficient evidence to award compensation for damages claimed in the lawsuit. If the defendant does come and admits to owing money, the case may be settled. The defendant can enter into an agreement to get more time to pay the plaintiff. When the defendant denies the claim, the judge asks why. If the defendant can come up with a legal reason for denying the claim, the judge orders the parties to mediation, carried out in the courthouse.
  
  

Questioning

• The plaintiff and defendant undergo a discovery process. The lawyers are responsible for answering a variety of questions, called "interrogatories," which allow the court to determine whether the complaint is legitimate. If either party fails to respond to the interrogatories, the case can be dismissed. Also, experts may examine the property and assess physical and medical examinations made by physicians. Both the plaintiff and defendant can bring witnesses to the trial. The lawyers on both sides can question the witnesses to obtain facts.
  
  

Motion to Dismiss

• Prior to the trial, one of the lawyers can file a motion to dismiss the case. This occurs when the evidence strongly suggests the case is likely to be dismissed in the trial. Filing the motion saves both the court and the client time and money. Trials can be long and expensive and there are too many lawsuits for the court system to handle them all, so most cases are settled out of court.