Key takeaways
- The most important rule: respond by the deadline. Most debt lawsuits are won by default because the person sued never answers.
- Your answer responds to each numbered allegation (admit, deny, or lack knowledge) and lists your defenses.
- Common defenses include the statute of limitations, lack of proof of ownership (standing), wrong amount, identity errors and improper service.
- Many debt buyers struggle to prove their case with admissible evidence. Responding gives you leverage to negotiate, even if you owe something.
Being served with a lawsuit is frightening, especially when the plaintiff is a company you have never heard of. But a debt collection lawsuit is usually a routine, paper-driven process, and the person who responds is in a far stronger position than the person who does not. This guide explains what to do from the moment the papers arrive.
Court rules differ by state and by court. Use this guide to understand the process, then check your court*’*s specific rules, forms and deadlines, or speak with a lawyer.
Step 1: Don’t ignore the papers, and note the deadline
You will usually receive two documents:
- A summons, which tells you that you have been sued, names the court, and states how and when you must respond.
- A complaint, which sets out the plaintiff’s claims in numbered paragraphs.
Find the response deadline. It is often around 20 to 30 days from the date you were served, but it varies. For example, in Massachusetts civil actions an answer is generally due 20 days after service, while small claims cases work differently and usually require you to appear on a set date. Write the deadline on your calendar.
If you miss it, the plaintiff can ask for a default judgment, which can lead to wage garnishment and bank levies. If that has already happened, read our guide to default judgments immediately.
Step 2: Read the complaint carefully
Check:
- Who is suing you? The original creditor, or a debt buyer? If it is a buyer, ownership will be a key issue. See who owns my debt?
- What account is it? Original creditor, last four digits, amount.
- What amount is claimed and how it is broken down (principal, interest, fees, attorney’s fees).
- What documents are attached? Often just a short affidavit and a statement or bill of sale.
- When did the debt go into default? Compare with your state’s statute of limitations.
Step 3: Gather your records
Collect any statements, letters, payment records, credit reports and correspondence with the creditor or collectors. If you sent a debt validation letter, include it and any response.
Step 4: Draft your answer
An answer is a written response filed with the court. Many courts provide a fill-in form for consumer debt cases; check the court’s website or self-help center.
Respond to each allegation
For every numbered paragraph in the complaint, respond with one of:
- Admit – only if the statement is completely true.
- Deny – if it is false or partly false.
- Lack sufficient knowledge to admit or deny – if you cannot confirm it (for example, that the plaintiff bought your account). In most courts, this has the effect of a denial.
Be careful about admitting that you owe the amount claimed, or that the plaintiff owns the debt, unless you are certain.
List your affirmative defenses
Affirmative defenses are reasons the plaintiff should not win even if some of its allegations are true. They must usually be stated in your answer, or they may be waived. Common ones in debt cases include:
| Defense | When it may apply |
|---|---|
| Statute of limitations | The suit was filed after the deadline for this type of debt. See time-barred debt. |
| Lack of standing | The plaintiff cannot show it owns the debt or has the right to sue. |
| Failure to state a claim | The complaint does not set out the basic facts needed. |
| Payment or settlement | You already paid or settled the debt. |
| Not my debt / identity theft | The account belongs to someone else or was opened fraudulently. |
| Wrong amount | Interest, fees or charges are not allowed by the agreement or law. |
| Improper service | You were not properly served with the summons. |
| Discharge in bankruptcy | The debt was discharged. |
Only include defenses that may genuinely apply to your case.
Consider counterclaims
If the collector violated the Fair Debt Collection Practices Act or state law, for example by suing on a time-barred debt or misrepresenting the amount, you may have a counterclaim. Counterclaims are more technical, and an attorney’s help is valuable here. Many consumer attorneys take FDCPA cases because the law allows successful consumers to recover attorney’s fees.
Step 5: File and serve your answer
- File the answer with the court clerk by the deadline, in person, by mail or electronically, as the court allows. There may be a filing fee; ask about a fee waiver if you cannot afford it.
- Serve a copy on the plaintiff’s attorney, as the court rules require, and keep proof that you did.
- Keep copies of everything you file.
Step 6: Use discovery
After you answer, both sides can request information. You can ask the plaintiff for:
- The original agreement and terms that applied to your account
- Account statements and payment history
- Documents proving the chain of ownership, including the bill of sale and the account-level record identifying your account
- How the balance was calculated
A plaintiff that cannot produce these documents may find it difficult to prove its case.
Step 7: Attend every hearing
Show up to every court date, on time, with copies of your documents. If you miss a hearing, the court may rule against you. Many courts offer mediation on the day of the hearing; it can be a good opportunity to resolve the case.
Step 8: Consider settlement, on your terms
Responding to the lawsuit often changes the plaintiff’s approach. Many cases settle. If you settle:
- Get the agreement in writing before you pay.
- Make sure it states the case will be dismissed (ideally “with prejudice”), the amount, the payment schedule and that no further amount is owed.
- Confirm how the account will be reported to credit bureaus.
Our guide to getting your debt settlement agreement in writing lists what to include. If you were already in a settlement program when the suit was filed, see can creditors sue during debt settlement?
What happens if the plaintiff wins?
The court enters a judgment for an amount. The plaintiff can then use enforcement tools such as wage garnishment or bank levies, within legal limits. DebtRemediationTools.org explains how much can be taken in wage garnishment: how it works. You may still be able to negotiate a payment plan or settlement after judgment.
Where to get help
- Court self-help centers and online court forms
- Legal aid organizations, if you qualify by income
- Consumer protection attorneys, especially for FDCPA counterclaims
- Debt remediation services, to help you organize records, request documentation and evaluate the plaintiff’s evidence. Massachusetts residents should also review Massachusetts debt collection laws.
DebtRemediationTools.org’s overview, sued for a debt? here’s what to do next, is a useful one-page checklist to keep beside you.
Frequently asked questions
The plaintiff can ask for a default judgment, usually for the full amount claimed plus costs. That judgment can then be enforced through wage garnishment and bank levies.
Yes. Many people represent themselves in debt cases, and many courts provide forms. A lawyer is helpful if you have a counterclaim, complicated facts or a large amount at stake.
There is no single best defense. The statute of limitations and lack of proof of ownership are among the most common and effective, but only if they apply to your facts.
Yes. Many debt cases settle after the defendant files an answer. Get the agreement in writing, including dismissal of the case, before paying.
You can, to discuss settlement, but stay factual and do not admit anything you have not verified. File your answer regardless of any conversations, unless the case has been formally dismissed.
Next step
If you have been served, the clock is running. Book a debt remediation consultation to review the complaint and the plaintiff’s evidence, and consider contacting a consumer attorney about representation.
This article is for general education and is not legal advice. Court rules, deadlines and forms vary by state and court. Consult a licensed attorney about your case.
debtremediation.org/ · Page
