Resolve Your Debt Lawsuit: Your Questions Answered

You face a debt lawsuit. You need answers fast.

Good news: About 70% of people who respond properly win their cases. Without a proper response, fewer than 10% win.

A win means three things. Your case gets dismissed. You settle for less. Or you buy time to explore other options.

Debt collectors exploit the system. Consider this real example:

Raquel gets sued for $1,000. An attorney wants $3,000 just to respond. She can’t afford that. She tries handling it alone.

She struggles with the Answer document. She can’t find the court’s mailing address. She calculates the filing fee wrong. Her printer breaks. The 21-day deadline approaches fast.

Without help, her $1,000 debt becomes a $3,600 judgment overnight. You can avoid this fate.

Our partner Solo helps you respond to lawsuits. You can file an Answer document. You can compel arbitration for credit card debts. You can settle before court.

Does Responding to a Debt Lawsuit Actually Work?

One viewer shared their victory: “I won my suit yesterday. Dismissed with prejudice. I cannot be more stoked and thankful.”

Responses work. You just need to do it right.

When you respond properly, you level the playing field. Collectors expect you to ignore the lawsuit. Your response forces them to prove their case.

What Are the Steps to Answer a Lawsuit?

You need three steps to answer properly:

• Respond to each claim in the Complaint
• Assert your affirmative defenses
• File before the deadline

An Answer document is formal. Phone calls don’t count. Regular letters don’t count. You need a proper court filing.

The Complaint contains numbered paragraphs. Your Answer must respond to each one. You mark each claim as admitted, denied, or lacking knowledge.

Affirmative defenses are critical. Many free forms online skip this part. These defenses can win your case.

Courts usually accept late filings. File as quickly as possible. A few days late rarely causes problems.

What Happens at a Virtual Pre-Hearing for Credit Card Debt?

You receive the Complaint. You file your Answer. The court schedules a pre-hearing.

A hearing is basically a trial. Most debt cases go before a judge, not a jury.

A pre-hearing is a pretrial conference. You attend. The attorney attends. The judge presides.

The judge asks if you want to proceed. He asks if you’ve tried settling. He might send you both to negotiate in the hallway.

If settlement fails, he schedules an actual hearing. The trial date might be months away.

Virtual hearings use WebEx or Zoom. Download the software beforehand. Test your connection. Check your court’s website for instructions.

Credit card debt cases have a pattern. Original creditors sell debts to debt buyers. The debt buyer often can’t prove you owe the debt.

The burden of proof stays with the collector. No documentation means they lose.

How Do I Prepare for a Pre-Trial?

Gather all documentation about your debt. Bring account statements. Bring payment records. Bring correspondence.

If you already paid the debt, bring proof. Show your bank statements. Show your transaction history.

Dress professionally. Arrive early. Don’t speed on your way there.

One person got pulled over rushing to court. Don’t let this happen to you.

Leave at least 30 minutes early. Find parking. Locate the courtroom. Compose yourself.

When Is the Best Time to Submit a Settlement Offer?

You can send an offer right after filing your Answer. Timing matters less than doing both.

Some people settle first, then file. Others file first, then settle. Both approaches work.

The important thing: Do both. File your Answer and make a settlement offer.

Don’t wait more than 30 days to make an offer. Collectors become less flexible over time.

Our partner Solo can help you negotiate a settlement that works for your budget.

What If I Don’t Have Money to Settle?

You denied everything in your Answer. Good start.

Settlement tools help you make lump sum offers. You get 90 days to pay the agreed amount.

Three months gives you time to gather funds. Save money. Ask family. Pick up extra work.

You can also negotiate directly with collectors. Call them. Email works better than phone calls.

Email levels the playing field. You negotiate asynchronously. You avoid pressure tactics. You think through each response.

Direct negotiation often includes payment plans. You make monthly payments instead of a lump sum.

What Happens When the Plaintiff Responds to My Answer?

You filed your Answer. The plaintiff sends a discovery document. You must respond.

Court cases work like ping-pong. One party files. The other party responds. Back and forth.

If you don’t respond, the other side wins by default. They get whatever they requested.

Request for Admissions is particularly dangerous. Ignore it and all statements become admitted. You lose your case instantly.

Check your state’s rules of civil procedure. Look up discovery deadlines. Usually you have 20 to 30 days.

Respond as quickly as possible. Don’t push deadlines.

Does Debt Consolidation Always Work?

Debt consolidation settles some accounts. But collectors can still sue on others.

Many people come to debt lawsuit help after consolidation fails. One bank might settle two cards but sue on a third.

Most consolidation companies lack legal backing. They can’t help when lawsuits arrive.

If you get sued during consolidation, file an Answer immediately. Your consolidation company can keep negotiating while you’re protected in court.

Larger companies like Freedom Debt Relief have in-house attorneys. Smaller companies refer lawsuits out.

What If I Get Sued in the Wrong State?

Different states have different statute of limitations. Pennsylvania has five years. Ohio has six.

You can request a venue change. File a motion to change venue.

Venue and applicable law are separate issues. A Pennsylvania court might apply Ohio law. An Illinois court might apply Pennsylvania law.

The statute of limitations depends on where you incurred the debt. Not where you’re sued.

If you got a credit card in Pennsylvania, Pennsylvania’s statute applies. Even if you’re sued in Ohio.

Venue issues get complicated. Consult an attorney for nuanced situations.

How Do I Use the Statute of Limitations as a Defense?

You opened an account in Texas in 2014. You moved to Florida. You got sued in Florida in 2023.

The statute of limitations starts when you last made a payment. Not when you opened the account.

If your last payment was 2019, only four years passed. The statute hasn’t expired.

If your last payment was 2014, nine years passed. The statute probably expired.

Here’s the catch: You must raise this defense. The judge won’t do it for you.

Include statute of limitations as an affirmative defense in your Answer. If you don’t file an Answer, the expired statute means nothing.

An expired statute of limitations is bulletproof. But only if you assert it properly.

What Happens When Your Account Is Charged Off?

The company stopped collecting. They wrote off your account. Then you got a Summons.

Charge-offs are common before lawsuits. The original creditor gives up. They sell your debt to a collector.

The new collector files the lawsuit. You still must respond.

File your Answer by the deadline. Include facts about the charge-off in discovery, not in the Answer itself.

The charge-off might help your case. Bring it up during hearings or settlement negotiations.

Is It Too Late to File a Motion to Compel Arbitration?

The plaintiff filed a Motion for Summary Judgment. You’re worried it’s too late.

Summary judgment is serious. The collector asks the judge to rule against you immediately. No trial needed.

You must respond with a counter-motion. Oppose the summary judgment. Argue that you have a valid defense.

In debt collection cases, summary judgment should be denied. The plaintiff must prove their case. You’re contesting it. Therefore, a trial is necessary.

File your opposition quickly. Include a memorandum supporting your position.

You can still file a Motion to Compel Arbitration. You can file it anytime before judgment.

Check your credit card agreement. The Consumer Financial Protection Bureau maintains a database of credit card agreements. Look up your agreement there.

If your agreement has an arbitration clause, use it. Arbitration often favors consumers in debt cases.

How Long Do I Have to Respond to Discovery?

The discovery document doesn’t state a deadline. You need to find out.

Call your court clerk. Ask about discovery response deadlines. Clerks answer procedural questions.

Check your state’s rules of civil procedure. Search online for your state plus “rules of civil procedure discovery.”

Discovery deadlines usually match Answer deadlines. Expect 20 to 30 days.

Respond as quickly as possible. Don’t wait until the last day.

If I Denied Owing the Debt, When Can I Settle?

You denied owing medical bills. You want a breakdown before settling.

You can wait for them to prove the debt. Make them show documentation. See the actual bills.

Or you can settle now. Make an offer based on what you know. Speed up the process.

Both approaches work. Your choice depends on your confidence about the debt amount.

What Is Sewer Service?

They knew where you lived. They waited until you moved to sue you.

Sewer service means serving papers at your old address. They know you won’t receive them. They get a default judgment.

It’s illegal. It’s also common.

File an Answer immediately. Allege improper service as a defense. The judge might dismiss based on improper service alone.

Does a Settlement Offer Admit You Owe the Debt?

Making a settlement offer doesn’t admit liability. People settle for many reasons.

You might settle to avoid legal fees. You might settle to save time. You might settle because fighting costs more than settling.

Settlement negotiations can’t be used against you in court. Most states protect settlement discussions.

Someone with money might settle a baseless claim. They don’t want the hassle. Settlement doesn’t prove guilt.

What If I Can’t Afford to Pay My Unsecured Loan?

You owe $15,000 in unsecured loans. You can’t pay it back.

Try settling for less. Most cases settle for 50% to 60% of the total. Your $15,000 might settle for $8,000.

Request a payment plan. Make monthly payments instead of a lump sum. Most collectors accept payment plans.

Our partner Solo can help you negotiate terms that fit your budget and settle your $15,000 debt for significantly less.

Can I Add My Debt to a Relief Program After Settling?

You settled your lawsuit. You wonder about adding it to a debt relief program.

If you’re already enrolled, your program might handle payments. Ask your program coordinator.

Usually you pay the collector directly after settling. Make payments according to your settlement agreement.

You might refinance the settlement amount. But collectors usually want payment within 30 days. Negotiated settlements give you up to 90 days.

If My Car Is Repossessed and Sold, Does That Count as Payment?

You had an auto loan. You returned the car voluntarily. The lender sold it.

The sale proceeds should apply to your loan balance. But you still owe the difference.

If your loan was $20,000 and the car sold for $12,000, you owe $8,000. Plus interest. Plus fees.

Auto loans get complicated after repossession. Sometimes sale proceeds aren’t properly credited. Document everything.

If you’re sued for the deficiency, you can contest the sale price. Argue they didn’t sell the car for fair market value.

How Does Solo Help Customers Avoid Admissions?

Admissions in your Answer document hurt your case. You must be careful.

Premium packages include attorney review. An attorney reads your Answer before filing. They catch dangerous admissions.

Attorneys determine what to admit versus deny. They protect you from accidentally weakening your case.

Professional review costs more. But it prevents costly mistakes.

What Is Solo and How Does It Help?

Solo makes resolving debt collection lawsuits simple. You can respond to lawsuits. You can send letters to collectors. You can settle debts.

The Answer service asks you questions. You answer them. The system creates your legal document.

An attorney reviews your document. Then the service files it for you. No court trips required.

Settlement tools help you negotiate directly with collectors. Everything happens online. The process is streamlined.

No matter where you are in the debt collection process, help is available.