Legal Question in Bankruptcy in California

I assume that a creditor -- and not the mortgage lender -- is suing you for a debt. You will have to file an answer, demurrer, and/or a motion to strike within the 30 days after you were served with the summons and complaint. If you do not do so, you can be considered in default and the plaintiff could seek a judgment against you. If you were going to file an answer, you can find forms on the Judicial Council website.

Whether you qualify for a Chapter 7 or a Chapter 13 requires a thorough review of your finances. A bankruptcy would stop all collection activity, including lawsuits, unless the creditor were to file in bankruptcy court a motion for relief from stay or an adversary proceeding. Many debtors are able to keep their vehicles if payments are current, as well as their homes. It all depends on your individual situation. You might want to investigate this further with an attorney in your area.