what happens if you agree to settle a lawsuit and fail to pay plaintiff

​Responding to a statement of claim

A statement of claim is a court document that sets out how much or what the other party claims yous owe them and why they are making the merits. The statement of claim starts a court case.

Yous are chosen the 'defendant', and the person who started the case against you is called the 'plaintiff'.

After a plaintiff fills out a argument of claim and files it with the courtroom, they take to serve (give) it to you.

There are rules well-nigh how a plaintiff must properly serve a argument of claim to a defendant. For more data, see Serving a statement of claim.

If your name is wrong on the statement of claim, you should get legal advice. Do not ignore a statement of merits

Reading a statement of claim tin can be complicated. The plaintiff will outline what they are claiming in the 'Relief' department of the form and the reasons for the claim in the section chosen 'Pleadings and particulars'.

The plaintiff tin include the following in their merits:

• ​​​interest
  
• filing and service fees
• lawyer'southward fees.

For more information, see What tin they claim?

After y'all have received the statement of claim you accept a number of things you can practise, including:

Pay the amount claimed

If the plaintiff's claim is about money and you agree with the claim, yous may:

• Negotiate with the plaintiff to endeavour and come to an agreement about settling the matter. Yous may exist able to hold that the argument of claim is withdrawn. This ways there will be no judgment against you.
  
• ​​Pay the full amount owed and notify the court by filing a document called a observe of payment. This means there will exist no judgment against you lot and the proceedings will be stayed (stopped).
• File a class called an acknowledgment of liquidated claim, which tells the courtroom you agree you owe the money, and and then utilise to pay by instalments. This means in that location volition be a court judgment confronting you.

For more information, run into If you lot agree.

Enquire for more than information

Sometimes a statement of claim will refer to events or documents that yous don't recognise or remember. Without this information it may be hard to work out if you owe the plaintiff anything or how much y'all owe.

You tin can write to the plaintiff and enquire them for more information. This is known as 'a asking for further and amend particulars'.

Some other way you tin ask for more information is by filing a notice to plead facts.

A detect to plead facts is a formal fashion in which you can enquire for more detail about the merits. You must consummate a course and file information technology with the court.

For more information, run across Asking for more information.

Negotiate

Yous could attempt to negotiate with the plaintiff. The plaintiff may concur to discontinue (withdraw) the claim if you come to an understanding.

For more than data, see Settling the case.

Go to external dispute resolution – consumer credit debts

If the claim is for a consumer credit debt, such equally a credit card or personal loan, y'all have the option of external dispute resolution (EDR).

For more than data about consumer credit debts, see Loans and credit cards in the Debt topic.

If you want to try EDR, the plaintiff must participate in the process. You tin get to EDR at whatsoever time up until a judgment has been entered. It is a skilful idea to try EDR earlier filing a defence class.

For more than information, see External dispute resolution.

File a defence

You tin can defend a statement of claim if you believe you don't owe all or function of the merits.

To defend the claim you must file a document chosen a defence. A defence force confirms that you lot deny some or all of the claim and the reasons why. These reasons are called the grounds of your defence force.

You must file the defense form at the same court where the statement of claim was filed within 28 days of being served with the argument of claim otherwise the plaintiff tin employ for a default judgment against you lot.

For more data, see Filing a defence force.

File a cross-claim

If you believe that the plaintiff owes yous coin or has your goods, yous may be able to file a claim against the plaintiff. This is called a cantankerous-claim.

Filing a cross-claim course can brand a example more than complicated and lead to college costs. Before filing a cross-merits form, yous should get legal advice.​

For more information, come across Filing a cross-claim.

Do nothing

Yous should not ignore a statement of claim! If you do not take action within 28 days the plaintiff may get a default judgment against yous without you attention court or existence notified. The default judgment can then be enforced. Having a judgment confronting you may too affect your credit rating.

For more than information, see What if you do zip?

williamsgrayoucand.blogspot.com

Source: https://www.lawaccess.nsw.gov.au/Pages/representing/Local_courts_small_claims/chased_for_money/Responding_to_soc/Responding_to_soc.aspx