Debt Collection / Can You Lose Your House If You Are Sued

If Someone Sues You, Can They Take Your House?

Written by Ben Tejes
Updated Nov 13th, 2023
The information provided in this article does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available in this article are for general informational purposes only.  

No, oftentimes if you are sued, the individual will not be able to take your house. That said, there may be some nuance if the individual is suing you for a loan or something that is backed by your house as collateral.

One of the most effective ways creditors can recoup their money is by filing a lawsuit. When one of their borrowers is severely behind on payments and not making any attempt to repay what they owe, they often will seek the legal support of the court. If they win their lawsuit, they are typically entitled to things like wage garnishment, property liens, and more. But how do you know if someone is suing you? Keep reading to find out.

That said, take the debt resolution options calculator below to understand your options to get out of the lawsuit.


How To Know If Someone Is Suing You

If you are drastically behind on your debt payments, you might worry that a lawsuit is coming. While in the majority of cases you will be served (a representative will come to you in person and hand you legal documents) once a lawsuit is filed, there is a chance that those papers will never come. This can be for a variety of reasons. Typically this either happens by mistake — if the papers are sent to the wrong location. It can also happen because you were not ever available to be served. Regardless of the cause, if you are never served, there is a chance that you have an automatic judgment placed against you. So, if you are worried that you have a lawsuit pending against you, but haven’t been served, here are a few places you can check.

Call The County Clerk

The County Clerk serves the county you reside in. If you are worried that someone is suing you, it's worth a call to find out. The County Clerk can look up records to see if there is anything filed against you. Hopefully, the clerk will be able to tell you whether or not they see any pending judgments. If a lawsuit was filed against you, and a default judgment has already been granted, the County Clerk should also be able to tell you the results of the case and how your debt is supposed to be collected (garnishment, lien, etc.).

Go To The Courthouse

Similar to calling the County Clerk, you should also be able to check your record at the actual courthouse. Depending on your county, there is a possibility that there is a different office they will direct you to, but they should be able to let you know where you can continue your search. 

Search Online

There is also a chance that your county has its own online database of records. If they do, you should be able to input your information and it will show what information they have on you. If your county does not have a site like this, then also try looking up your name with the word “lawsuit” behind it. While this might not show anything relevant, if a lawsuit has been filed, there is a small chance that it is available to the public online. 

Check PACER

Finally, you can also check PACER. PACER stands for Public Access to Court Electronic Records. This is a little bit different than what we mentioned just above. While your county might have its own program, PACER is owned and operated by the US Government. You should, again, be able to input your relevant information and see whether or not someone is suing you. 

What To Do If Someone Is Suing You

So what happens when you find out that there is a lawsuit filed against you? Luckily, you have some options. Let’s take a look at a few of the steps you need to take. 

Answer The Lawsuit

While there are some instances where ignoring letters and calls from creditors might be valuable, a lawsuit is not the time to stop responding. As mentioned earlier, if you refuse — or even accidentally miss — your hearing, it is likely that the court will grant the creditor a default judgment. When this is done, it typically means the creditor automatically wins the case and will likely be granted the garnishment or lien they were seeking. 

To avoid this, make sure you answer the lawsuit in the given amount of time! Some states give as little as 10 business days. Other states allow up to a month to respond. Regardless of how long you have to respond, make sure you respond. Typically there will be an “Answer” that you send in. At the very least, send in your Answer requesting documentation of the proof of the debt. Once you have done this, there are other things you can do.

Contact Your Creditor

If there is still time before your trial, consider calling your creditor. It is likely they have been trying to get in touch with you! At this point, both you and the creditor are looking at spending a lot of time and money on a court case. They may be willing to negotiate a better repayment plan. Consider asking for a settlement, a break in payments, or a new payment plan that works better for you. Whatever you are able to do, be willing to offer it to your creditors. There is a chance they will accept lower terms in order to avoid going to trial. Use our free Debt Relief Calculator below to see what options you may have moving forward.

Prepare For The Trial

If you are not able to come to an agreement with your creditor, then it might be time to prepare for the trial. If you have a complicated case and want to fight the lawsuit, then consider working with legal representation. There are some legal programs (depending on where you live) that might offer discounted legal services and representation. You might also want to start gathering evidence to help your case. If you are in the middle of hardship, get evidence to show the court! Have you reached out multiple times to your creditor to find a resolution? Make sure you take note of when you called and what was said. Whatever you have been doing to remedy your debt, keep track of it so you can show the court that you are at least working towards a resolution. 

Conclusion 

While you should be alerted if a lawsuit is ever filed against you, it doesn’t hurt to check for yourself if you are expecting a lawsuit but haven’t yet received one. Contact your local County Clerk, check PACER, or even go directly to your courthouse. Once you know someone is suing you, make a plan on how to respond! If you would like help, call Ascend. We love helping people figure out their next financial move.