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

​Responding to a argument of claim

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

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

Afterward a plaintiff fills out a argument of claim and files it with the court, they have to serve (give) it to you.

In that location are rules about how a plaintiff must properly serve a argument of merits to a accused. For more information, see Serving a statement of claim.

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

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

The plaintiff can include the post-obit in their claim:

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

For more information, meet What tin they claim?

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

Pay the amount claimed

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

• Negotiate with the plaintiff to attempt and come to an agreement most settling the matter. You may be able to agree that the statement of claim is withdrawn. This ways there volition be no judgment against you.
  
• ​​Pay the full amount owed and notify the court by filing a document called a notice of payment. This means there volition exist no judgment against you and the proceedings volition exist stayed (stopped).
• File a class called an acquittance of liquidated claim, which tells the court you agree you lot owe the money, and so apply to pay by instalments. This means there will exist a court judgment confronting you.

For more than data, see If you concur.

Ask for more data

Sometimes a statement of claim volition refer to events or documents that you lot don't recognise or recollect. Without this information it may be hard to work out if you owe the plaintiff annihilation or how much you lot owe.

Yous tin write to the plaintiff and ask them for more information. This is known as 'a request for further and better particulars'.

Another fashion you tin ask for more data is by filing a observe to plead facts.

A notice to plead facts is a formal way in which you can ask for more detail about the claim. You must complete a form and file it with the courtroom.

For more information, see Asking for more data.

Negotiate

Y'all could try to negotiate with the plaintiff. The plaintiff may hold to discontinue (withdraw) the claim if you lot come to an agreement.

For more information, see Settling the case.

Get to external dispute resolution – consumer credit debts

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

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

If you lot want to effort EDR, the plaintiff must participate in the process. You lot can go to EDR at any time upward until a judgment has been entered. It is a good idea to try EDR earlier filing a defence class.

For more information, meet External dispute resolution.

File a defense force

You can defend a statement of claim if you believe y'all don't owe all or part of the claim.

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

You must file the defence form at the same courtroom where the statement of claim was filed inside 28 days of being served with the statement of claim otherwise the plaintiff tin use for a default judgment confronting you.

For more information, see Filing a defence.

File a cross-merits

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

Filing a cantankerous-merits grade can make a case more complicated and lead to higher costs. Before filing a cross-claim class, you lot should get legal advice.​

For more information, meet Filing a cross-merits.

Do nothing

Y'all should non ignore a statement of claim! If you do not have action within 28 days the plaintiff may go a default judgment against you without you attention courtroom or existence notified. The default judgment tin can then be enforced. Having a judgment against you may also affect your credit rating.

For more than information, run into What if yous do nothing?

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

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