You've Been Sued for Debt. Here's How to Respond and Win.

You have 20 to 30 days to respond to a debt lawsuit, depending on your state. Miss that deadline and you lose automatically. The debt collector gets a default judgment, your wages get garnished, and your bank account gets frozen.

That's what happens to 70% of people sued for debt. They panic, they hide, they hope it goes away. It doesn't.

But here's what most people don't know: responding to a debt lawsuit is easier than you think, and it works. People who file an Answer are seven times more likely to walk away with a reduced settlement or outright dismissal.

This guide shows you how to respond, what to say, and what happens next. No legal jargon. Just the moves that work.

What Happens If You Don't Respond

If you ignore the lawsuit, the court assumes you admit everything. The debt collector wins by default and gets a judgment against you. That judgment is a legal claim on your money.

What a judgment allows them to do:

• Garnish up to 25% of your paycheck (or the state maximum)
• Freeze your bank account and take what's inside
• Place a lien on your property
• Report the judgment to credit bureaus, tanking your score

In most states, judgments last 10 to 20 years. They accrue interest. If you owed $5,000 when sued, you might owe $9,000 by the time they collect.

The good news: responding stops this process cold. Once you file an Answer, the collector has to prove their case. And many can't.

Why Debt Collectors Often Lose When You Fight Back

Debt collectors buy old debts for pennies on the dollar. They get a spreadsheet with names, account numbers, and balances. They rarely get the original contract, account statements, or proof you owe what they claim.

When you respond to the lawsuit, you force them to produce evidence. They have to show:

• You signed the original contract
• You owe the exact amount they're claiming
• They have the legal right to collect (often they're the third or fourth owner of the debt)
• The debt isn't past the statute of limitations

Many collectors can't clear these hurdles. They dismiss the case or offer a steep settlement discount rather than go to trial.

That's why responding works. You're not admitting guilt. You're making them prove it.

How to Respond: Filing an Answer

Your response is called an Answer. It's a legal document that tells the court you dispute the debt and plan to defend yourself.

Step 1: Read the Summons and Complaint

The Complaint lists the collector's claims against you. Each claim is a numbered paragraph. Your Answer responds to each paragraph, one by one.

You have three options for each paragraph:

• Admit if it's true (like "You live at this address")
• Deny if it's false or you don't have enough information
• Deny for lack of knowledge if you genuinely don't know

When in doubt, deny. You're not lying. You're saying they haven't proven it yet.

Step 2: Include Affirmative Defenses

These are legal reasons the case should be dismissed. Common defenses include:

• Statute of limitations: The debt is too old to sue over (varies by state, usually 3 to 6 years)
• Lack of standing: The collector doesn't own the debt or can't prove they do
• Insufficient evidence: They haven't provided documentation
• Payment or settlement: You already paid or settled this debt
• Identity theft: This isn't your debt

You don't need to prove these defenses in your Answer. You just need to raise them. The burden of proof is on the collector.

Step 3: File and Serve Your Answer

File your Answer with the court listed on the Summons. Most courts let you file in person or by mail. Some allow e-filing.

You must also serve a copy on the collector's attorney. Serve means officially deliver. You can mail it (certified mail recommended) or use a process server.

Do this before your deadline. If your deadline is June 1, file by May 25. Courts are strict about deadlines.

If you need help drafting your Answer, start here. We can guide you through it or connect you with a lawyer who handles debt defense.

What Happens After You File Your Answer

Once you file, the case moves to discovery. That's the phase where both sides exchange evidence.

The collector will send you requests for documents (like bank statements or payment history) and interrogatories (written questions you answer under oath). You send them requests too.

This is where many collectors fold. If they can't produce a signed contract or account statements, they'll often offer a settlement or dismiss the case outright.

Three outcomes you can expect:

1. Settlement

Most debt lawsuits settle. The collector offers to accept less than you owe if you pay in a lump sum or installments. Settlements typically range from 30% to 60% of the original debt.

Get any settlement in writing before you pay a dime. Make sure it says the debt is satisfied in full and they'll dismiss the lawsuit. Never agree to a payment plan without a written agreement.

2. Dismissal

If the collector can't prove their case, they'll dismiss it. This happens more often than you'd think. Collectors drag their feet on discovery, miss deadlines, or realize they don't have the paperwork.

A dismissal with prejudice means they can't refile. A dismissal without prejudice means they can try again (though most don't).

3. Trial

If the case goes to trial, you'll present your defenses in front of a judge. Debt collection trials are usually short. You explain why you don't owe the debt, and the collector presents their evidence.

If the collector wins, the court enters a judgment. But even then, you can appeal or negotiate post-judgment.

Can You Settle Before Filing an Answer?

Yes. Some collectors will settle before you even respond. Call the attorney listed on the Summons and ask if they'll accept less.

But don't settle without knowing your defenses first. If the debt is past the statute of limitations or they lack standing, you might not owe anything.

And never pay without a written settlement agreement. Verbal promises mean nothing in court.

When Bankruptcy Makes More Sense

If you're being sued for one debt but drowning in several, filing bankruptcy might be the better move.

A Chapter 7 bankruptcy wipes out most unsecured debts (credit cards, medical bills, personal loans) in three to four months. It also stops the lawsuit instantly via the automatic stay.

A Chapter 13 bankruptcy sets up a repayment plan and stops wage garnishment and lawsuits. You pay what you can afford over three to five years, then the rest is discharged.

If your total debt exceeds $10,000 and you're facing multiple lawsuits, check if bankruptcy is your best option. Filing costs $300 to $400 if you do it yourself, or $1,000 to $2,500 with an attorney.

How Much Does It Cost to Defend a Debt Lawsuit?

Filing an Answer yourself costs $0 to $50 (some courts charge a filing fee, most don't).

Hiring a debt defense attorney costs $500 to $2,500 depending on your location and the complexity of your case. Some attorneys work on contingency, meaning they only get paid if they win or settle favorably.

Many people file their own Answer, then hire a lawyer only if the case goes to trial. That's a smart middle ground.

Common Mistakes That Lose Cases

1. Admitting you owe the debt

Even if you think you owe it, don't admit it in your Answer. Make them prove it. They might not be able to.

2. Missing the deadline

File early. If your deadline is unclear, call the court clerk and ask. Don't guess.

3. Not serving the collector

Filing with the court isn't enough. You must also serve the collector's attorney. If you don't, your Answer doesn't count.

4. Ignoring discovery requests

If the collector sends you interrogatories or document requests, respond. Ignoring them can get your Answer dismissed.

5. Settling without a written agreement

Verbal settlement offers are worthless. Get it in writing, signed by the collector's attorney, before you pay anything.

What If You're Sued in the Wrong State?

Collectors sometimes sue in the state where they're located, not where you live. That's called improper venue, and it's a valid defense.

If you're sued in the wrong state or county, raise improper venue in your Answer. The court will either dismiss the case or transfer it to the correct location.

Can You Countersue for FDCPA Violations?

If the collector violated the Fair Debt Collection Practices Act (FDCPA), you can countersue for up to $1,000 in statutory damages plus attorney fees.

Common FDCPA violations include:

• Calling before 8 a.m. Or after 9 p.m.
• Threatening arrest or legal action they can't take
• Contacting you after you sent a cease-and-desist letter
• Disclosing your debt to third parties

If you have evidence of violations, mention it in your Answer and consider filing a counterclaim. Collectors often dismiss the case to avoid liability.