Received a Lawsuit from Your Bank? Here’s What to Do, Step by Step!

Receiving a lawsuit from a bank is a stressful situation, but it is not a dead end. It most often concerns unpaid debts — a loan or a credit facility. In the lawsuit, the bank demands repayment of the debt together with interest and costs. How should you react? How can you defend yourself effectively? Below is a complete guide to what to do after receiving a lawsuit from a bank.

Read the bank’s lawsuit carefully

The first step is to review the contents of the lawsuit in detail. Make sure the document contains:

• full details of both parties (the bank and you),
• the grounds for the claim,
• the amount claimed.

If you notice formal errors, such as missing documentation or inconsistencies, you can raise the relevant formal objections — this may affect how the case proceeds.

Verify whether the bank’s claim is justified

Before taking any further steps, check whether the debt actually exists. Compare the amount stated in the lawsuit with your own records:

• the loan agreement,
• your repayment history,
• correspondence with the bank.

If the claim is incorrect, or you have already repaid the debt, it is worth demonstrating this in your response to the lawsuit.

Consult a lawyer – legal representation is your support

Help from an advocate or legal counsel is a key element of an effective defence. A lawyer will:

• prepare a professional response to the lawsuit,
• identify possible objections (e.g. that the debt does not exist, or that the amount is incorrect),
• advise whether it is worth entering into negotiations with the bank.

Having legal representation increases your chances of a favourable outcome in the court case against the bank.

Prepare your response to the lawsuit

You have at least 14 days to file a response to the lawsuit — the exact deadline will be stated in the court notice. It must not be missed!

In your response, you can raise, among other things:

• an objection that the debt does not exist,
• an objection that the claimed amount is incorrect or overstated,
• mitigating circumstances (job loss, illness, other hardships).

Failing to respond in time can result in a default judgment, which treats the bank’s claims as established fact!

Consider a settlement with the bank – avoid a costly trial

If you acknowledge the claim but cannot repay the debt in a single payment, negotiating
with the bank is a good solution.

Legal representation can help you:

• spread the debt into instalments,
• negotiate a lower amount to repay,
• avoid court fees and legal representation costs.

A settlement with the bank is often a faster and cheaper way out than a lengthy trial.

Remember the court costs

If you lose the case, you may be required to pay not only the debt, but also:

• court costs,
• legal representation costs incurred by the bank.

A well-prepared defence and legal representation can help limit these expenses.