Getting served with a lawsuit for unpaid debt can be a frightening experience. It's easy to feel overwhelmed and unsure of what to do. However, ignoring the lawsuit is the worst possible course of action. In Wisconsin, as in most states, you have specific rights and options available to you. This blog post will guide you through the steps you should take if you've been sued for an unpaid debt in Wisconsin.

1. Don't Panic, But Act Quickly:

• Read the Documents Carefully: The lawsuit documents, including the summons and complaint, will outline the debt, the amount owed, and the deadline for your response. Pay close attention to these deadlines, as missing them can result in a default judgment against you.
• Keep Everything Organized: Create a file to store all lawsuit-related documents, including the summons, complaint, any correspondence, and your own notes.

2. Understand the Lawsuit:

• Identify the Plaintiff: Determine who is suing you. Is it the original creditor, or a debt collection agency?
• Review the Debt Details: Confirm the amount owed, the account number, and the date of the debt. Does this information match your records?
• Check for Errors: Look for any inaccuracies in the lawsuit, such as incorrect dates, amounts, or names.

3. Respond to the Lawsuit:

• File an Answer: You must file a written response, called an "answer," with the court within the specified timeframe. This answer should address each allegation in the complaint, admitting or denying them.
• Consider Affirmative Defenses: You may have legal defenses to the lawsuit, such as:
  • The debt is not yours.
  • The statute of limitations has expired. (In Wisconsin, the statute of limitations for most contract debts is generally six years.)
  • The debt collector violated the Fair Debt Collection Practices Act (FDCPA).
  • The debt is already paid.
  • The debt amount is incorrect.
• Seek Legal Advice: It's highly recommended to consult with an attorney specializing in debt defense in Wisconsin. They can help you understand your rights, prepare your answer, and represent you in court. Free legal resources in Wisconsin, like legal aid societies, might be available if you qualify.

4. Explore Your Options:

• Negotiate a Settlement: You may be able to negotiate a settlement with the creditor or debt collector. This could involve paying a reduced amount or setting up a payment plan.
• Consider Bankruptcy: If you have overwhelming debt, bankruptcy may be an option. Chapter 7 bankruptcy can discharge certain debts, while Chapter 13 bankruptcy allows you to create a repayment plan.
• Chapter 128: As mentioned in previous responses, Wisconsin's Chapter 128 is a state specific debt amortization plan, and could be an option.

5. Attend Court Hearings:

• Don't Ignore Court Dates: If your case goes to court, attend all scheduled hearings. Failure to appear can result in a default judgment.
• Be Prepared: Bring all relevant documents and evidence to court.

Important Considerations for Wisconsin Residents:

• Wisconsin Consumer Act: This act provides additional protections for consumers in credit transactions.
• Garnishment: If a judgment is entered against you, the creditor may be able to garnish your wages or bank accounts. Wisconsin has specific laws regarding garnishment exemptions.
• Homestead Exemption: Wisconsin provides a homestead exemption, which protects a certain amount of your home equity from creditors.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.