How to Answer a Debt Collection Lawsuit Without Automatically Admitting You Owe the Debt

How to Answer a Debt Collection Lawsuit Without Automatically Admitting You Owe the Debt

You've been served with a debt collection summons.

Now the paperwork says you need to “Answer.”

But what exactly does that mean?

Many consumers make the mistake of thinking they have only two choices:

Pay the debt or deny that the debt belongs to them.

A lawsuit is more complicated than that.

What Is an Answer to a Debt Lawsuit?

An Answer is generally the defendant's formal response to the allegations contained in the plaintiff's complaint.

The complaint may contain numbered allegations concerning the account, balance, ownership of the debt, agreement, payments, default, and other facts.

Your Answer gives you an opportunity to respond as permitted by your court's rules.

You Don't Have to Guess

Depending on the allegation and applicable rules, responses commonly involve admitting an allegation, denying it, or indicating that you lack sufficient information to admit or deny it.

The exact procedure varies by jurisdiction.

This is why simply downloading a random Answer from the internet and changing the name can create problems.

Your response should be based on your lawsuit and your court's requirements.

What Are Affirmative Defenses?

Affirmative defenses are legal reasons that may prevent or limit the plaintiff's recovery even when certain underlying facts are true.

The defenses that apply depend entirely upon the circumstances.

Potential issues in a debt lawsuit can involve:

• Statute of limitations

• Standing

• Ownership of the account

• Chain of assignment

• Payment or credit issues

• Incorrect balance

• Contract issues

• Authentication of records

• Improper fees or interest

• Other state-specific defenses

This doesn't mean every defendant should automatically claim every defense.

A defense should have a legitimate factual and legal basis.

What If a Debt Buyer Is Suing Me?

Pay particular attention to the identity of the plaintiff.

The company suing you may not be the company that originally extended the credit.

Accounts can sometimes be sold or assigned.

When a debt buyer files a lawsuit, questions about ownership and documentation can become important.

The plaintiff generally must be able to establish its right to recover from the defendant.

What If I Actually Owe the Money?

Recognizing an account doesn't mean you should ignore the lawsuit.

There can still be questions concerning the amount, documentation, ownership, interest, fees, and potential resolution of the case.

Responding can also preserve your ability to participate in the litigation instead of allowing the plaintiff to seek judgment without your side being heard.

Can I Settle After Filing an Answer?

Potentially.

Defending a lawsuit and discussing settlement aren't necessarily mutually exclusive.

In some situations, a defendant may respond to the lawsuit while also exploring settlement.

A filed lawsuit doesn't automatically eliminate the possibility of reaching an agreement.

Don't Wait Until the Deadline Is Here

One of the biggest mistakes people make after receiving a summons is spending days searching:

“What should I do?”

Then suddenly their response deadline is approaching.

Start early.

Summons Master helps consumers review their debt lawsuit information and learn about options for responding.

Have a debt collection summons sitting on your kitchen table right now?

Don't ignore it.

Answer 4 quick questions and see what options may be available for your debt lawsuit.

Visit Summons Master to get started.

Educational information only and not legal advice. Requirements vary by state and court.