Debt Lawsuit Q&A: Expert Answers to Your Top Questions

You’ve been sued for debt. You have questions. We have answers.

The following transcript comes from a live webinar. A debt resolution expert responds to real questions from people facing debt lawsuits.

Disclaimer: The information below is not legal advice. The responses come from a debt resolution expert, not an attorney.

What Should I Do If a Pretrial Conference Is Scheduled?

Question: What steps can be taken if a pretrial conference has been scheduled?

Answer: Start by checking what state you’re in. Some states offer specific resources for pretrial conferences.

You must show up to your pretrial conference. The judge will be there. The debt collector’s attorney will be there too.

The meeting focuses on scheduling. The parties discuss whether you can settle the case. If not, the judge schedules a formal hearing date.

Bring all documentation related to your debt. Print out account records, statements, and correspondence. Having these records ready strengthens your position.

You can watch our video guide for preparing for court. Search for state-specific debt lawsuit preparation resources online.

What Should I Say During My Oral Argument for a Motion to Vacate?

Question: I filed a Motion to Vacate Judgment in New Jersey for debt from 2009. I have an oral argument scheduled. What should I prepare?

Answer: Your strategy depends on your specific situation.

If you won the original lawsuit, argue that the judgment should stand. You already won. The collector shouldn’t get another chance.

If you lost on default, explain that you deserve a chance to respond. Argue that the debt collector can’t prove you owe the debt. Point out that their contracts or documentation are incomplete.

Emphasize that you lost because you didn’t respond. You didn’t get a fair opportunity to defend yourself.

Check New Jersey debt collection laws for additional guidance. These resources can help you strengthen your argument.

What If My Case Was Dismissed But They’re Still Collecting?

Question: There was a dismissal for the judgment against me, but they’re still trying to collect. What should I do?

Answer: Getting a judgment dismissed is good news. You took an important step.

However, dismissal doesn’t always stop collection attempts. Debt collectors sometimes continue pursuing dismissed debts.

Argue that the judgment wasn’t properly renewed. Point out that without a valid judgment, they have no legal basis to collect.

Document every collection attempt. Save letters, emails, and phone call records. These could be Fair Debt Collection Practices Act violations.

If collection attempts continue after dismissal, you may have grounds for a counterclaim. Consider speaking with our partner Solo about your options.

Do I Still Have to Go to Court After Filing an Answer?

Question: Should I go to court after I filed the paper for them to prove I owe the debt?

Answer: Yes. Filing an Answer doesn’t eliminate court appearances.

Many defendants must still appear in court after filing. Check your court documents for hearing dates.

Your main argument should focus on proof. The debt collector must prove you owe the debt. Often their contracts are incomplete. Sometimes they lack proper documentation entirely.

Missing a court date can result in default judgment. You lose automatically. The collector can garnish your wages and freeze your bank account.

Always show up when required. Bring your filed Answer and all supporting documents.

How Can I Prepare for My Pretrial Conference in Texas?

Question: I have a pretrial conference scheduled in Texas. How do I prepare?

Answer: A pretrial conference is a preliminary meeting. You, the plaintiff’s attorney, and the judge meet before the actual trial.

The judge typically asks if you can settle. Many debt lawsuits settle at this stage.

The collector’s attorney may make a settlement offer. You have the right to negotiate. Don’t feel pressured to accept the first offer.

If you don’t settle, the judge schedules a formal hearing date. You must appear at that hearing too.

Gather your account records now. Print statements, payment history, and correspondence. Bring everything to the courthouse.

Being organized shows you’re serious. It also gives you leverage during settlement discussions.

How Do I Respond to a Motion to Strike?

Question: What if the plaintiff requests the court to enter an order to strike?

Answer: A motion to strike asks the judge to remove evidence or parts of your pleading.

The debt collector files this motion when they want your evidence excluded. They might argue your evidence is inadmissible.

You must respond with a counter motion. Argue that your evidence is valid and admissible.

Evidence rules vary by state. Research your state’s rules of evidence. Focus on showing your evidence meets legal standards.

Present your evidence properly. Format matters in court. Follow your court’s specific filing requirements.

The pattern is simple: they file a motion, you file a counter motion. Include a memorandum explaining why your evidence should be allowed.

What Happens If I Deny Everything in My Answer?

Question: What happens with the debt collector after you submit a denial to your summons?

Answer: After you file an Answer denying the claims, the collector must decide.

They can either continue the lawsuit or dismiss it. Many collectors actually dismiss cases after receiving an Answer.

Filing an Answer shows you’re willing to fight. Collectors prefer easy default judgments. When you respond, their costs increase significantly.

If enough money is involved, they’ll continue pursuing the case. Smaller debts often get dismissed when defendants respond.

After filing your Answer, consider making a settlement offer. Most people want to settle rather than go to trial.

You can negotiate a settlement directly with the collector. Many cases settle for 50-60% of the total amount.

The key indicator for successful settlement is your initial offer. Offers within 20% of the collector’s target amount are more likely to succeed.

How Do I Know If My Settlement Offer Was Accepted?

Question: I sent a settlement offer last week. How will I know if it was accepted?

Answer: You’ll receive an email notification when the collector responds.

If they accept your offer, you’ll get the settlement agreement via email. Review it carefully before signing.

Make sure the agreement includes dismissal of the lawsuit. All settlement terms should be clearly stated.

If they counter your offer, you’ll see their counteroffer in the email. You can accept their counter or make another offer.

Settlement negotiations often involve multiple rounds. Stay patient but persistent.

Once both parties agree, sign the settlement agreement. Then transfer the money according to the agreed terms.

Keep copies of everything. Save the signed agreement and payment confirmation. You’ll need these if any disputes arise later.

What Are My Rights With Medical Debt?

Question: Do you have different rights if it’s medical debt?

Answer: Medical debt follows similar rules to other consumer debt. A few differences exist in specific states.

Some states have different statutes of limitations for medical debt. Research your state’s specific rules.

Many creditors now decline to report medical debt. Credit bureaus have also changed their medical debt policies.

Medical debt is dischargeable in bankruptcy. Unlike student loans, you can eliminate medical debt through Chapter 7 or Chapter 13.

Some nonprofits specifically target medical debt relief. Organizations like RIP Medical Debt purchase and forgive medical debts.

Your defense strategy remains the same. The collector must still prove you owe the debt. They must provide complete documentation.

How Can I Find My Credit Card Arbitration Clause?

Question: I’m in Michigan. How do you know if a credit card company has an arbitration clause? The card was opened in 2005.

Answer: Check the Consumer Financial Protection Bureau’s credit card agreement database. Search for your credit card issuer.

The CFPB database includes recent credit card agreements. It may not have your exact 2005 agreement.

Credit card agreements generally haven’t changed much. Most major banks use similar arbitration clauses today as they did in 2005.

Some large banks removed arbitration clauses after lawsuits about a decade ago. Most still include them.

If you find an arbitration clause, you can file a Motion to Compel Arbitration. This forces the case into arbitration instead of court.

Arbitration significantly increases the collector’s costs. Many collectors dismiss cases rather than pursue arbitration.

Should I File a Counterclaim?

Question: Is doing a counterclaim a good idea?

Answer: Counterclaims work when you have valid grounds.

Did the collector violate the Fair Debt Collection Practices Act? Did they call at inappropriate times? Did they harass you?

Each FDCPA violation is worth $1,000. You can recover statutory damages plus attorney fees.

State laws may provide additional counterclaim options. Research your state’s debt collection laws.

Not every attorney handles counterclaims. The $1,000 per violation may not justify attorney involvement.

Some law firms specialize in FDCPA cases. If you believe you have a valid claim, contact us for a referral.

Our partner Solo can help you evaluate whether you have grounds for a counterclaim.

Should I Still Respond If I Settled the Debt?

Question: A debt collector summoned me, but I called and settled. The attorney said I don’t need to respond. Should I still file an Answer?

Answer: Yes. Absolutely file an Answer.

Some debt collectors use a deceptive tactic. They encourage you not to respond after settling.

Then they file for default judgment after your deadline passes. You lose the case by default.

If you miss a settlement payment, they immediately enforce the judgment. They can garnish your wages without returning to court.

Protect yourself by filing an Answer regardless of settlement discussions.

Get your settlement agreement in writing. The agreement must specifically state the lawsuit will be dismissed.

Only skip filing an Answer if you have a signed settlement agreement that dismisses the lawsuit. Even then, filing provides extra protection.

What Is a Good Faith Settlement?

Question: I received a case management order. It says to participate in good faith settlement options and file a pretrial statement 30 days before August 23.

Answer: Good faith settlement is a common court requirement. It means you must genuinely attempt to settle before trial.

The process varies by court. Some courts hold in-person settlement conferences. Others expect parties to negotiate independently.

The collector may reach out to discuss settlement. You can also initiate settlement discussions.

If settlement fails, you proceed to trial. Document all settlement attempts. The court wants proof you tried.

Your pretrial statement should include several elements. State your settlement efforts. Include documentation of your debt. List evidence proving you should win.

Check if your court provides a pretrial statement template. Follow the format exactly. Courts often reject statements that don’t follow their rules.

Should I File a Motion to Compel Arbitration?

Question: There’s an arbitration clause in my credit card agreement. Does that automatically mean I should push arbitration, or is this only for certain cases?

Answer: An arbitration clause usually favors you as the defendant.

Arbitration dramatically increases collection costs. Filing fees alone can cost thousands of dollars.

Many collectors dismiss cases rather than pursue arbitration. They lose their cost advantage.

Filing a Motion to Compel Arbitration gives you significant leverage. Use this leverage to negotiate better settlement terms.

Some specific situations might argue against arbitration. These are rare exceptions.

Generally, if your credit card agreement includes arbitration, file the motion. It’s one of your strongest defensive tools.

What If You Settle But Can’t Pay?

Question: What happens if you settle but don’t have the money to pay at all?

Answer: Negotiate a 90-day payment deadline. This gives you three months to gather funds.

Most collectors accept extended payment deadlines. They prefer one lump sum over monthly payments.

Monthly payment plans often fail. People miss payments for various reasons. Then the collector restarts collection efforts.

A single lump-sum payment is cleaner. You pay once and you’re done.

Push for the longest possible deadline. Offer more money in exchange for more time if needed.

Don’t settle unless you can reasonably pay by the deadline. A broken settlement agreement hurts your position.

Should I Deny Claims Even If I Want to Settle?

Question: Is it best to deny the claim if you want to settle the suit?

Answer: Yes. Always deny the claims in your Answer.

Any attorney would deny the claims on your behalf. Denying gives you negotiating leverage.

You might admit minor procedural facts. But deny all substantive claims about owing the debt.

Denying claims doesn’t prevent settlement. It actually improves your settlement position.

The collector must prove their case. Making them work increases their costs. Higher costs motivate settlement.

How Do You Settle With American Express?

Question: How do you deal with Amex debt? They’re not willing to settle.

Answer: American Express does settle some cases. Their refusal may be a negotiation tactic.

Your offer might be too low. Try increasing your settlement amount.

They may be waiting to see how the lawsuit develops. Some collectors settle after certain milestones.

If your agreement has an arbitration clause, file a Motion to Compel Arbitration. This often changes their settlement willingness.

Try calling back multiple times. Different representatives have different authority levels. You might get better results with another person.

Collectors operate inconsistently. The person you speak with significantly impacts the outcome.

Should I Talk to Debt Collector Attorneys?

Question: A lawyer from LVNV Funding called me today. Should I talk to them? They sent me a summons.

Answer: Don’t talk to them before filing your Answer.

File your Answer first. This establishes your rights formally. It shows you’re serious about defending yourself.

After filing, you can negotiate from strength. You’ve already protected yourself against default judgment.

If they’re calling, they likely want to settle. Use this to your advantage.

Check your state’s recording laws. Most states allow you to record calls without telling the other person.

Record all phone conversations with debt collectors. These recordings protect you if they make false statements.

Consider communicating by email instead. Written communication creates an automatic record. You avoid pressure tactics common in phone negotiations.

Once you’ve filed your Answer, our partner Solo can help you negotiate a settlement on your terms.

Your Next Steps After Being Sued

You have options when facing a debt lawsuit. The key is taking action quickly.

First, respond to the lawsuit. File an Answer before your deadline. This single step prevents default judgment.

Second, decide your goal. Most people want to settle for less than they owe. Some want the case dismissed entirely.

Third, take action on your goal. Negotiate a settlement. File a Motion to Compel Arbitration. Prepare for your court date.

You’re not alone in this fight. Thousands of people successfully defend debt lawsuits every year.

Take action today. Your deadline is approaching. Every day matters when you’re facing a debt lawsuit.