If you do nothing you will most likely have a default judgment entered against you so that is normally not a good option. If you have a defense against the lawsuit, i.e. you had reported the card as stolen and the $8,100.00 in charges were not yours; you should file an answer and vigorously defend against the lawsuit. Depending on a number of factors, which you should discuss with an experienced bankruptcy attorney, bankruptcy may be your best option. Our law firm does offer a free telephone consultation. Raymond Kenney is licensed to practice law in Arizona. His phone number is 623-234-3536 his email address is ray@rkenneylaw.com.

This answer is offered for informational purposes only. It is not offered as, and does not constitute, legal advice. You should rely only on the advice given to you during a personal consultation by a local attorney who is thoroughly familiar with state laws and the area of practice pertaining to your matter. The response herein is not legal advice and does not create an attorney client relationship.

Sorry to hear about the lawsuit. You are right, you do have a couple of options. First, you can do nothing. If you do nothing, then the creditor will receive a judgment against you for the amount of the suit, plus fees. So, about $8100.00 plus any other costs, like attorneys fees and court costs. They then have the right to garnish your wages, collect against a bank account in your name or lien any property you have and they have the right to do this for 7 years. Or, you could answer the summons and prepare to pay the debt or even attempt to negotiate and pay part of the debt over time. Finally, you could consider bankruptcy and file and get rid of the debt. Consider whether you could afford to have a judgment against you? Are you employed? In Arizona, a creditor can collect 25% of your gross wages? Doing nothing can be a solution if you don't have wages or property. If you chose to pay, is it realistic that you have the funds to make monthly payments? Finally, if you are considering bankruptcy, speak to a bankruptcy attorney because there can be benefits, as well as downsides to filing bankruptcy and you want to be educated in your decision. Hope this helps.