How to Resolve Your Debt Lawsuit: Expert Q&A Session

You can respond to a debt lawsuit and win. You have real options to fight back.

The following transcript shares answers to real questions from people facing debt lawsuits. George Simons, founder of Solo, responds to live viewer questions about defeating debt collectors.

Disclaimer: This content is not legal advice. George is not a lawyer. No attorney-client relationship exists through this information.

Your Odds of Winning Just Got Better

Here’s good news. People who respond to debt lawsuits with our partner Solo win about 70% of the time.

Without help, people only win 10% of the time. Most lose automatically by default judgment.

Solo increases your win rate by 7x. You could get a settlement, dismissal, or time to plan your next move.

What Debt Collectors Count On

Debt collectors exploit the legal system. They know most people won’t respond.

Consider Raquel’s situation. She got sued for $1,000 in debt. An attorney wanted $3,000 upfront. The free legal clinic only met quarterly.

She tried responding herself. She needed court addresses, filing fees, a printer, and stamps. She missed her 21-day deadline.

That $1,000 debt ballooned to a $3,600 judgment overnight.

Three Ways to Resolve Your Debt Lawsuit

You have three powerful options to fight back.

File an Answer Document

An Answer prevents automatic default judgment. You respond to the Complaint point by point.

This crucial step protects your rights. You deny the claims and assert your defenses.

Over 100,000 people have used this approach to respond to over $700 million in debt lawsuits.

File a Motion to Compel Arbitration

Many credit card agreements include arbitration clauses. You can force the case out of court.

Arbitration costs collectors thousands of dollars. Many will dismiss rather than pay arbitration fees.

Check the CFPB database for your credit card agreement. Look for arbitration language.

Settle for Less Than You Owe

Settlement often makes the most sense. You can negotiate to pay less.

If you owe $10,000, you might settle for $5,000. You save $5,000 immediately.

Collectors prefer settlement over court battles. Court is expensive for them too.

How Motion to Compel Arbitration Works

You file the motion with the court. You also send a copy to the plaintiff’s attorney.

Three outcomes typically happen:

• The collector dismisses the case completely
• They file opposition and request a hearing
• The judge grants arbitration and sets up the process

Expect at least 30 days before any response. Most cases wrap up in four to six months.

Some take years. Check your state’s rules of civil procedure for specific deadlines.

If they miss the deadline, tell the court. Request that your motion be granted.

When to Discuss Settlement

You can settle almost anytime during your case. Settlement negotiations can happen while court proceedings continue.

Many people follow this strategy: File an Answer first. Schedule the hearing as far out as possible. Build up money for settlement. Make an offer before the hearing date.

The plaintiff wants to avoid court too. Court costs them money and resources.

You gain leverage by responding. Collectors hate dealing with defendants who fight back.

Best Practices for Debt Settlement

Settle through email or written communication. Avoid phone negotiations if possible.

Collectors negotiate on the phone for a reason. They can pressure you more easily. There’s less written record of what they promise.

Some collectors openly admit they prefer phone negotiations. They can be more aggressive without documentation.

Written settlement protects you in several ways:

• You get time to think about offers
• Everything is documented clearly
• You can’t be rushed into bad decisions
• Your financial information stays protected

Our partner Solo helps you negotiate settlements online. You make offers and receive counteroffers in writing.

California Debt Lawsuit Responses

California is the most common state for debt lawsuits. You can absolutely respond in California.

The process works the same. You file an Answer to the Summons and Complaint.

California courts follow standard civil procedure rules. Your Answer must address each claim in the Complaint.

Arbitration vs Settlement: Which is Better?

Both strategies work well together. You don’t have to choose just one.

Here’s a smart approach: File your Answer document first. Check if your credit card agreement has an arbitration clause. File a Motion to Compel Arbitration if one exists. Then make a settlement offer immediately after.

The arbitration motion gives you more leverage to settle. Collectors know arbitration costs them thousands.

Your settlement offer becomes more attractive when they face arbitration costs.

Major collection agencies have admitted that arbitration motions hurt their profit margins. They’d rather settle than arbitrate.

Louisiana Debt Lawsuit Responses

Louisiana has unique court filing requirements. Filing fees can be tricky to calculate.

Louisiana often charges by the page. Rates might be $10 per page filed.

Professional services track over 3,000 courts nationwide. They calculate exact filing fees for each court.

You need accurate filing fees to respond properly. Incorrect fees can delay your Answer.

How to Respond to Discovery Requests

After filing your Answer, the case continues. The plaintiff may send interrogatories or requests for admissions.

Interrogatories are written questions. You must answer them in writing under oath.

Requests for admissions ask you to admit or deny specific facts. You must respond to each request.

You must respond to discovery requests. Ignoring them damages your case.

Most people settle at this stage. Settlement avoids complex discovery battles.

If you want to continue fighting, research how to respond to discovery. Look up your state’s rules of civil procedure.

Understanding Legal Language in Your Answer

Legal documents use specific terminology for good reasons. These terms have precise meanings established over centuries.

American law uses a common law system. Court decisions rely on precedent from past cases.

Legal language stays consistent so judges can apply precedent properly. Terms like “equitable estoppel” have specific meanings.

You can Google individual legal terms to understand them. Search for the phrase plus “legal definition.”

Common Affirmative Defenses Explained

Laches: The plaintiff took too long to file the lawsuit. Unreasonable delay bars their claim.

Equitable estoppel: The plaintiff acted improperly. The judge should deny their claim based on their bad conduct.

Unclean hands: The plaintiff hasn’t acted ethically. They don’t deserve relief from the court.

Failure to mitigate damages: The plaintiff didn’t take proper steps to reduce their losses. They let damages grow unnecessarily.

These defenses appear in most Answer documents. Attorneys include them as standard practice.

Does Discover Card Settle Lawsuits?

Yes, Discover settles regularly. The track record shows good settlement rates.

Many people claim Discover is hard to settle with. Actual data shows otherwise.

Discover often settles rather than fight extended court battles. Settlement saves them money and resources.

Why You Should Deny Owing the Debt

Even if you owe the debt, deny the claims in your Answer. This mirrors what attorneys do.

An attorney would deny every paragraph in the Complaint. This isn’t lying or dishonest.

Denying claims puts the burden of proof on the plaintiff. They must prove you owe the debt.

Burden of proof is a core legal principle. The person suing must prove their case.

You’re making them prove every element of their claim. You’re exercising your legal rights.

How Debt Settlement Affects Your Credit

Settled debts stay on credit reports for about seven years. This is standard for most credit events.

A settled debt appears as a negative mark. However, it’s better than unpaid delinquent debt.

Lenders prefer borrowers who settled over borrowers who never paid. Settlement shows you attempted to resolve the debt.

Would you rather loan money to someone with unpaid debt or settled debt? Most choose settled.

Improving Your Credit Score After Settlement

You can improve your credit during those seven years. Take specific actions to rebuild.

Open a credit account and keep it open long-term. Maintain two to three different credit accounts.

Make every payment on time without exception. Keep your balance below 30% of your credit limit.

Pay off the full balance every month if possible. This shows responsible credit use.

Our partner Kikoff helps you build credit safely. You can start improving your score today.

What If You Already Settled the Debt?

Getting sued for a debt you already settled is serious. This situation is rare but happens.

Respond to the lawsuit immediately. Include your settlement as an affirmative defense.

Bring documentation showing you settled. Include payment records and settlement agreements.

The original creditor may have sold your account after settlement. This shouldn’t happen, but sometimes does.

If you had a payment plan, check if the sale violated your agreement. This could strengthen your defense.

Statute of Limitations Defenses

You don’t need to prove statute of limitations in your Answer. The Answer only responds to the Complaint.

Your case progresses through stages. First come pleadings (Complaint and Answer). Then discovery (if needed). Finally, trial or hearing.

The Answer only asserts your defenses. You’re not providing evidence yet.

Assert statute of limitations as an affirmative defense. Provide the date of your last payment.

Evidence comes later during discovery or at trial. The Answer just puts them on notice.

Handling Multiple Debt Lawsuits

You can respond to multiple lawsuits simultaneously. You can also settle multiple debts.

File a separate Answer for each lawsuit. Each case needs its own response.

Make separate settlement offers for each debt. Negotiate each case independently.

Many people prioritize which cases get premium service. They might use full service for one case and self-file others.

Settlement Timing vs Answer Filing

You can make settlement offers before or after filing your Answer. Ideally, do both on the same day.

The crucial point is doing both. Don’t skip the Answer just because you want to settle.

Your Answer gives you leverage to settle. Collectors take you more seriously when you respond.

File the Answer first, then immediately make your settlement offer. This maximizes your negotiating position.

Do You Have to Appear in Court?

You might have to appear after filing your Answer. Filing doesn’t automatically end the case.

Your Answer prevents default judgment. The case continues from there.

Discovery might happen next. Then a hearing or trial gets scheduled.

If a hearing happens, you must attend. You can hire an attorney to appear for you. You might attend with an attorney. Or you can represent yourself.

Bring all your documents and records to the hearing. Prepare your arguments in advance.

Some courts allow remote hearings. Check with your specific court.

You Can Win This Fight

Remember that you have real options. Debt collectors count on you giving up.

Responding to your lawsuit changes everything. You go from automatic loser to having a 70% win rate.

You can file an Answer, compel arbitration, or settle for less. Often the best strategy uses all three.

Professional help is available and affordable. You don’t need thousands of dollars for an attorney.

Our partner Solo provides step-by-step guidance. You answer questions and they handle the legal paperwork.

Don’t let collectors exploit you through the court system. Fight back and protect your rights.

What is Solo?

Solo makes it easy to resolve debt collection lawsuits. You can respond to lawsuits, send letters to collectors, and negotiate settlements.

Solo’s Answer service walks you through every question needed to complete your response. An attorney reviews your document before filing.

Solo’s settlement service helps you contact collectors and negotiate debt online. The process is simple and streamlined.

No matter where you are in the debt collection process, Solo provides solutions. Over 100,000 people have successfully used these services.