Were you served with a debt collection lawsuit? Learn what to do next, why you should not ignore the summons, and what options you may have to respond and defend yourself.
Sued by a Debt Collector? Here’s What to Do Next
Getting served with a lawsuit over an old credit card, personal loan, medical bill, or other debt can be frightening.
Your first thought may be:
“What am I supposed to do now?”
The most important thing to understand is that receiving a lawsuit does not automatically mean the company suing you wins.
But doing nothing can make their job much easier.
What Happens When a Debt Collector Sues You?
A debt lawsuit generally begins when a creditor or debt collector files a complaint claiming that you owe money.
You may then receive court documents that identify:
Who is suing you
How much they claim you owe
The court handling the case
The allegations against you
Your deadline or instructions for responding
Do not assume that because you recognize the debt, every allegation in the lawsuit is automatically correct.
The plaintiff generally still has the burden of proving its case.
Step 1: Find Your Response Deadline
Look carefully at your summons and complaint.
Your response requirements can vary depending on your state and court.
Missing the required deadline can put you at risk of a default judgment.
That is one reason procrastinating after being served can be so dangerous.
Step 2: Don't Assume You Have No Defense
We hear this frequently:
“I had the credit card, so what is there to fight?”
That is the wrong question.
The better question is:
Can the plaintiff prove everything it is required to prove?
Depending on the facts of the case, important questions may include:
Is the amount claimed accurate?
Can the plaintiff properly document the account?
If a debt buyer is suing, can it establish its ownership of the particular debt?
Are the records being relied upon admissible?
Is the lawsuit within the applicable statute of limitations?
Have payments, credits, fees, and interest been properly calculated?
Does the plaintiff have the legal right to sue?
You don't need to assume the answers. You need to examine the lawsuit.
Step 3: Understand What an Answer Does
An Answer is the defendant's formal response to the lawsuit.
Depending on your court's rules, your response may address the allegations and identify applicable defenses.
Filing an Answer does not necessarily mean you're claiming you never had the account or never owed money.
It means you're participating in the lawsuit and protecting your right to respond to the plaintiff's allegations.
Step 4: Don't Confuse Negotiating With Responding
You might be considering calling the debt collector and offering a settlement.
Settlement can sometimes be an option.
But don't assume that a telephone conversation, payment arrangement, or settlement negotiation automatically stops your court deadline.
Unless the lawsuit has actually been resolved or your deadline has otherwise changed, protect yourself by paying attention to the court requirements.
What Happens If You Ignore a Debt Collection Lawsuit?
The plaintiff may ask the court for a default judgment.
Once a judgment is entered, additional collection remedies may become available depending on state and federal law.
Those can potentially include wage garnishment, bank account garnishment or attachment, judgment liens, and other collection procedures.
That's why the time to investigate your options is before a judgment is entered whenever possible.
You Have Been Served. Now Find Out Your Options.
You don't have to understand every legal term before taking your first step.
Summons Master was created to help consumers understand and respond to debt collection lawsuits.
Instead of ignoring the papers and hoping the lawsuit disappears, start by finding out what options may be available in your situation.
Answer 4 quick questions to learn more about your debt lawsuit and your potential next steps.
Visit Summons Master and start your case review today.
Educational information only. Summons Master is not a law firm and does not provide legal representation. Court procedures and legal rights vary by jurisdiction.
