February 10th, 2012 by Reed Allmand 
In most cases, a lawsuit filed for money owed is likely an unsecured debt which can be discharged in bankruptcy. Deciding to file an answer may depend on when you plan to file bankruptcy if you haven’t begun the process already.
When you file bankruptcy the automatic stay goes into effect which prevents creditors from collecting from you. The stay also stops any legal action pending against you such as a judgment. The end result depends on what chapter you file. If you are being sued for an unsecured debt and you file Chapter 7 then the debt associated with the lawsuit would be discharged. If you file Chapter 13 you could be required to pay a fraction of what is owed.
There are exceptions to being sued and not receiving a discharge. Certain debts such as back child support or spousal support are not dischargeable. So what can you do with the summons? If you are in the process of filing bankruptcy forward the summons to your bankruptcy attorney. If you have yet to begin filing bankruptcy you may choose to answer the complaint.
Keep in mind that you have a certain amount of time to answer the summons and if you fail to answer the complaint or show up in court on the scheduled date it could result in a default judgment. Filing an answer may give you more options on how to deal with the situation, consider a debt settlement or make final preparation to file bankruptcy. You best bet is to review the situation with a bankruptcy attorney.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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