How To Respond To a Debt Collection Lawsuit in New York

A debt collection lawsuit can feel overwhelming. But ignoring it makes things worse.

You have legal rights and possible defenses. Fighting back could save you from wage garnishment and bank levies.

This guide shows you exactly how to respond to a debt lawsuit in New York.

How Debt Collection Lawsuits Work in New York

Creditors have the right to sue you for unpaid debts. They must follow federal and state laws when collecting.

The lawsuit starts when a creditor or debt collector files a complaint with the court. The plaintiff could be your original creditor or a debt buyer who purchased your account.

The complaint includes four key elements:

• Allegations against you
• Facts supporting those allegations
• Legal principles giving them the right to sue
• Remedies they want from the court

How You Get Notified of a Debt Lawsuit

You receive a summons and complaint. One document should say “Consumer Credit Transaction” on it.

The papers get served to you in three possible ways:

• Hand-delivered directly to you
• Hand-delivered to someone at your home plus mailed to you
• Left where you’ll find them plus mailed to you

The clock starts ticking once you receive these papers. You must respond quickly to protect your rights.

Your Deadline To Answer the Complaint

You get 10, 20, or 30 days to respond. The deadline depends on how you were served.

10-day deadline: Papers hand-delivered to you in a City Court outside NYC.

20-day deadline: Papers hand-delivered to you in any other court.

30-day deadline: Papers mailed to you, given to someone else, or left for you.

Your answer must address every allegation in the complaint. You’ll admit or deny each claim.

You can also raise defenses. These are reasons why the plaintiff shouldn’t win.

Don’t need a lawyer to defend yourself. Many people successfully fight debt collectors on their own. Our partner Solo has helped over 280,000 people respond to debt lawsuits and settle for less.

What Happens If You Ignore the Lawsuit

Ignoring the lawsuit is the worst thing you can do. The court will issue a default judgment against you.

A default judgment means the plaintiff wins automatically. You’ll owe the full debt plus interest and legal fees.

The collector can then garnish your wages or freeze your bank account. They might even seize your personal property.

Filing an answer protects you from these consequences. Always respond within your deadline.

How To File Your Answer

New York allows two ways to answer: in writing or in person. Both methods work if done within your deadline.

Answering in Person

Go to the courthouse where the complaint was filed. Find the clerk’s office.

NYC residents can find court locations on the New York City Civil Court website. Outside NYC, check the New York State Court System.

Verify the court allows in-person answers for debt cases. The clerk will give you a Consumer Credit Transaction Answer form.

Fill out the form completely. Check all defenses that apply to your case.

The clerk will give you a copy. Ask if the court sends a copy to the plaintiff or if you must.

Keep your copy safe. You’ll need it at your court hearing.

Answering in Writing

Download the answer form from your court’s website. NYC forms are available at NYCourts.gov.

Complete every section of the form. Address each allegation in the complaint.

File your completed answer with the court clerk. You’ll receive a stamped copy for your records.

Someone over 18 (not you) must mail a copy to the plaintiff or their attorney. That person completes an Affidavit of Service by Mail.

File the affidavit with the court or bring it to your hearing.

If the complaint has a notarized signature, your answer needs one too. Get your answer notarized before filing.

Common Defenses Against Debt Collectors

Your defense explains why the plaintiff shouldn’t win. Multiple defenses can apply to one case.

Bring evidence supporting your defenses. Documents work best as proof.

The New York Court website lists common defenses. Review them carefully before filing your answer.

Defenses About the Debt Itself

Use these defenses when the debt amount is wrong or you don’t owe it:

• You don’t owe the plaintiff any money
• You’re a victim of identity theft or mistaken identity
• You already paid the debt in full
• The amount claimed is incorrect
• The contract terms are unconscionably unfair
• The collection amount constitutes unjust enrichment

Defenses About the Plaintiff’s Rights

These defenses challenge whether the collector can legally sue you:

• Statute of limitations expired: Collectors have three years from your default date or last transaction to sue
• Lack of standing: The plaintiff can’t prove they own your debt
• No collection authority: The collector lacks required licenses in Buffalo or NYC
• Bankruptcy discharge: You eliminated the debt in bankruptcy

Technical and Procedural Defenses

Collectors must follow strict legal procedures. Mistakes give you valid defenses:

• You never received the summons
• Improper service of the complaint or summons
• Missing debt collection license number in the complaint

Additional Defenses

Other defenses might apply to your situation. Protected income like Social Security can’t be garnished.

Write down any reason you believe you don’t owe the money. Include it in your answer.

You might also have a counterclaim. This means the plaintiff actually owes you money.

What Happens at Your Court Hearing

The court schedules your hearing after you file your answer. You’ll get the date immediately or by mail.

Your court date will be at least five days after filing. But expect it soon after your answer is filed.

Bring all your evidence and a copy of your answer. Present your defenses clearly to the judge.

Our partner Solo can help you prepare your defense and negotiate a settlement. Many debt collectors settle for less than the full amount before trial.

You have the power to fight back against debt collectors. Take action today to protect your wages and bank accounts.