Sued by Debt Collector? How to Resolve Your Debt Fast
If a debt collector sues you, respond immediately by filing an Answer before your state's deadline. Negotiate a settlement to pay less than the full amount and avoid a court judgment. Missing your deadline results in automatic loss and wage garnishment.
Answer Your LawsuitDodging debt collectors might work temporarily. Eventually, collectors will escalate the problem.
When calls, texts, and letters fail, they turn to lawsuits. You need to act quickly once a debt collector files suit against you.
Facing a Debt Collection Lawsuit?
You need to respond before your state's deadline expires. Missing it means automatic loss.
Answer Your LawsuitTime is running out, but you can still resolve your debt. Here’s exactly what you need to do.
Why Debt Collectors Sue You
Debt collectors don’t sue immediately after getting your account. They only file lawsuits as a last resort.
You would need to ignore several debt notices over months or even years. Resolving debt before a lawsuit is always easier and less stressful.
But hope isn’t lost after a lawsuit. You just need to move fast.
How to Resolve Your Debt After Being Sued
You’ll receive two documents when you’re sued. One is a Summons, the other is a Complaint or Petition.
The Summons notifies you of the lawsuit. The Complaint explains why the collector is suing you.
Step 1: Answer the Lawsuit Immediately
Your response deadline is critical. Most states give you 14 to 30 days after filing.
You must respond by filing an Answer form. Your Answer tells the collector you’re fighting back.
Missing this deadline means you lose automatically. The court will issue a default judgment against you.
Filling out an Answer form requires careful attention. One mistake could cost you the case. Our partner Solo helps you respond correctly and on time.
Facing a Debt Collection Lawsuit?
You need to respond before your state’s deadline expires. Missing it means automatic loss.
Step 2: Negotiate a Settlement With the Collector
Filing an Answer buys you time. Now you can start negotiating a settlement.
Debt collectors often accept reasonable settlement offers. Lawsuits cost them money in attorney fees and court costs.
Settling lets them recover most of the debt without trial expenses. You avoid a court judgment that damages your finances.
Start by offering 50% of the total debt. Negotiations may take several rounds of back and forth.
Both parties benefit when you reach an agreement. You pay less than the full amount and avoid judgment.
Settlement Negotiation Example
Charles receives a Summons for a $5,000 medical debt. He looks up his state’s deadline and files an Answer immediately through our partner Solo.
Charles offers to pay 60% of the debt ($3,000) to settle. After several rounds of negotiation, they agree on 65% ($3,250).
Charles pays the agreed amount. The collector drops the lawsuit and Charles avoids judgment.
Step 3: Pay the Settlement Amount as Agreed
Reaching agreement isn’t the finish line. You must pay the exact amount you agreed to.
Payment logistics can get complicated. Make sure you document everything in writing.
Get a settlement agreement that specifies the amount, payment method, and deadline. Keep proof of payment for your records.
Never pay without getting the settlement terms in writing first. Verbal agreements aren’t enough to protect you.
What Happens If You Ignore the Lawsuit?
Ignoring a lawsuit guarantees you lose. Courts issue default judgments in nearly 100% of ignored cases.
A default judgment means automatic loss. You forfeit your right to defend yourself.
Debt collectors normally can’t garnish your wages or seize your property. But court judgments change everything.
With a judgment, collectors can garnish wages and freeze bank accounts. They can pull money directly from your paycheck or savings.
Wage garnishment creates serious financial stress. The amount taken varies by state, but it compounds your debt problems.
Resolve Your Debt Before It’s Too Late
Being sued is your final warning. The legal complexity and tight deadlines create enormous pressure.
You don’t have to face this alone. Our partner Solo helps you respond to lawsuits and negotiate settlements.
File your Answer on time. Negotiate a fair settlement. Pay the agreed amount and avoid judgment.
You can end this debt and start fresh. Take action now before your deadline passes.
Six Tips for Drafting Your Answer
- Respond before your state’s deadline expires
- Admit only what you know is absolutely true
- Deny claims you’re unsure about or that seem wrong
- Assert all affirmative defenses that apply to your situation
- File your Answer with the correct court
- Send a copy to the debt collector’s attorney