If you owe a debt to someone and have not paid it by the requested date, that person (called a creditor) might choose to sue you. In this context, being sued is when a creditor takes court action against you.
A court can make an order that you owe a debt. This debt is then called a judgment debt.
You will have to pay:
- the debt
- the creditor’s legal costs
- interest on the debt.
Being sued can end up costing you much more money than your original debt.
A court order gives a creditor options to get money back, for example, a creditor can apply to have money taken from your wages or to take and sell things you own, including your home.
How do I know I have been sued
Usually a creditor will send a letter of demand before starting action to sue you….