Common situations

What to Do If You Are Being Sued by a Debt Collector

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If you have been served with a lawsuit by a debt collector, the most important things to know:

Do not ignore it. Ignoring a lawsuit results in default judgment, which is the worst possible outcome.
There are deadlines that matter. You typically have 20-30 days to respond, depending on your state.
You need a lawyer. This page is general information. Your situation requires advice from someone who knows your state's laws and your specific case.

This page exists to help you understand the basics so you can make informed decisions and find appropriate help. It does not replace legal counsel.

Disclaimer

This page is educational information only. It is not legal advice. Debt collection lawsuits involve specific procedural requirements that vary by state and jurisdiction. Missing deadlines or failing to respond properly can result in default judgment against you, with serious financial consequences.

If you have been served with a lawsuit, contact a consumer protection attorney as soon as possible. Many offer free initial consultations. Many work on contingency for cases that involve FCRA or FDCPA violations. Many areas have legal aid organizations that provide free help to low-income consumers.

How to find a consumer protection attorney

What a debt collection lawsuit looks like

You will know you are being sued when you are "served" with court papers. This usually involves a process server delivering papers to you in person, though specific procedures vary by state.

The papers typically include:

Summons

A document from the court informing you that you are being sued and ordering you to respond. The summons specifies the deadline for your response.

Complaint

A document from the plaintiff (the party suing you) explaining what they are claiming. The complaint identifies:

Who is suing you (often a debt buyer or collection agency, sometimes the original creditor)
What they are claiming you owe
Why they say you owe it
What relief they are requesting (typically a judgment for the amount claimed plus interest, fees, and costs)

What default judgment means

If you do not respond to the lawsuit within the deadline, the plaintiff can request default judgment. Default judgment means:

The court rules in the plaintiff's favor automatically
You are ordered to pay the amount they claim
The plaintiff can pursue collection through wage garnishment, bank account levies, and other methods
You lose the opportunity to assert defenses, including statute of limitations defenses
You may be responsible for the plaintiff's attorney fees and court costs

Default judgment is the worst possible outcome for almost any debt collection lawsuit. Avoiding it should be your immediate priority.

How many days you have

The deadline to respond varies by state, but typically 20-30 days from when you were served. Specific examples:

California: 30 days
Florida: 20 days
New York: 20-30 days depending on circumstances
Texas: First Monday following the 20th day after being served
Most other states: somewhere in this range

Check the summons. The deadline is usually stated explicitly.

Time runs from when you were served, not when you discover the lawsuit. If you avoided the process server, time may still be running based on alternative service procedures.

Statute of limitations as a defense

The statute of limitations on debt varies by state. If the debt is past your state's SoL, that is a complete defense to the lawsuit if you assert it.

But you must assert it. SoL is not automatic. If you do not appear or do not raise the SoL defense, the court can rule against you even on a debt that is past the SoL.

Statute of limitations by state

Common SoL ranges:

Written contracts (most consumer debts): 3-15 years depending on state
Open accounts (credit cards in some states): 3-6 years
Oral contracts: shorter, often 2-4 years
Promissory notes: similar to written contracts

Your state's specific SoL for your specific debt type matters. Check your state's actual statutes or consult an attorney.

Why you need a lawyer

A lawyer can:

Review the specific procedural requirements in your state
Identify defenses available to you (SoL, lack of standing, lack of documentation, etc.)
File a proper response (answer) to the lawsuit
Demand documentation from the plaintiff
Negotiate with the plaintiff if appropriate
Represent you in court hearings
Identify any FCRA or FDCPA violations that could lead to counterclaims

Many consumer protection attorneys take debt collection defense cases. Many work on contingency or for low fees. Some areas have legal aid organizations that provide free representation for low-income consumers.

What to do right now if you have been served

1. Note the deadline

Read the summons carefully. Note the exact deadline for response. Mark it prominently on your calendar.

2. Save everything

Keep all the papers you received. Do not throw anything away. Make copies if you can.

3. Contact a consumer protection attorney immediately

Time matters. Even before you decide what to do, get the issue in front of a lawyer who can help you understand your options.

Resources:

National Association of Consumer Advocates (NACA) - naca.net
Your local legal aid organization
State bar association referral service
Many consumer protection law firms offer free consultations

4. Do not contact the plaintiff directly

Anything you say to the plaintiff or their attorneys can be used against you. Let your lawyer (or the court itself) be the channel for communication.

5. Do not panic

The lawsuit is serious but there are options. Consumers who appear and assert defenses often win or settle favorably. Many debt buyer cases are vulnerable to procedural challenges.

Common defenses

Defenses your lawyer might raise:

Statute of limitations

If the debt is past your state's SoL, that is usually a complete defense.

Lack of standing

The plaintiff must prove they actually own the debt and have the right to sue. For debt buyers, this requires documentation of the chain of title. Many debt buyer cases fail because the documentation is inadequate.

Lack of documentation

The plaintiff must prove the debt exists, the amount is correct, and you owe it. Many debt buyer cases lack the original signed contract, complete payment history, or other essential documentation.

Identity issues

If the debt is not yours, that is obviously a defense. This includes debts that were taken out fraudulently in your name.

FCRA or FDCPA violations

If the plaintiff or their predecessors violated FCRA or FDCPA in connection with the debt, you may have counterclaims that could result in damages owed to you.

Improper service

If you were not properly served, the case may need to be dismissed and refiled.

What happens next

Once you respond to the lawsuit, the case will proceed through:

Pre-trial motions and discovery

Both sides exchange documents and may file motions. Your lawyer will demand documentation from the plaintiff.

Settlement negotiations

Many debt collection lawsuits settle without trial. If the plaintiff's case is weak, settlement terms can be favorable.

Trial (if no settlement)

Most debt collection cases that go to trial are decided based on the documentation. The plaintiff must prove their case. Many fail to do so.

If you win

The case is dismissed, the debt may be deemed unenforceable, and you may have grounds for FCRA cleanup of the credit reporting on the account.

If you lose

A judgment is entered against you. The plaintiff can then pursue collection through wage garnishment, bank account levies, and other methods. State law governs what can be garnished and how.

What not to do

Do not ignore the lawsuit

This results in default judgment, the worst outcome.

Do not contact the plaintiff to admit the debt

Anything you say can be used against you. Even sympathetic statements ("yes, I had that account but...") can constitute admissions that defeat defenses.

Do not make a partial payment thinking it will help

Payments can be characterized as admissions of the debt. They can also revive statute of limitations defenses you might otherwise have.

Do not represent yourself if you can possibly avoid it

Debt collection law has specific procedural requirements. Legal aid and contingency representation are widely available. Use them.

Do not assume you have to pay the full amount

Many debt collection cases settle for a fraction of the claimed amount. Some are dismissed entirely. The amount the plaintiff is asking for is rarely what you end up paying.

Resources

Find a consumer protection attorney

National Association of Consumer Advocates (NACA): naca.net
State bar association referral services
Local legal aid organizations
Consumer protection law firms in your area

State court information

Each state has its own court system. Find your state court's website for information about civil procedure deadlines and requirements.

Legal aid

Most states have legal aid organizations that provide free help to low-income consumers. Find yours through your state bar association or by searching "legal aid [your state]."

Pro se resources (if you absolutely must represent yourself)

Many state courts have self-help resources for people representing themselves. These are not a substitute for a lawyer, but if you cannot get a lawyer, they are better than nothing.

Bottom line

Being sued by a debt collector is serious but manageable if you act quickly. The two things that matter most:

Respond before the deadline
Get legal help

Both are achievable. Both are critical.