Sued for Debt? Your 3-Step Plan to Fight Back and Win

You opened the envelope. A debt collector is suing you. The court paperwork says you owe $5,000, maybe $10,000. You have 21 days to respond.

Most people do nothing. They're paralyzed by fear, confused by the legal jargon, or convinced they can't afford a lawyer. That's exactly what the collector wants. When you don't respond, they win automatically—called a default judgment,and suddenly they can garnish your wages or freeze your bank account.

But here's the reality: if you respond to the lawsuit, your odds flip dramatically in your favor. Debt collectors rely on no-shows. When defendants actually file an Answer, collectors win only about 30% of the time. Many cases get dismissed. Others settle for pennies on the dollar.

This guide walks you through the exact steps to fight a debt lawsuit, whether you're doing it yourself or working with an attorney. You'll learn what to file, when to file it, and how to use the court system to your advantage.

Step 1: Understand What You're Being Sued For

The lawsuit packet you received is called a Summons and Complaint. The Summons tells you how many days you have to respond (usually 14-30 depending on your state). The Complaint lists what the collector claims you owe and why.

Read both documents carefully. Look for:

• The plaintiff's name. This is who's suing you. Often it's not your original creditor,it's a debt buyer like Midland Funding or Portfolio Recovery.
• The account number. Does it match an account you recognize?
• The amount claimed. This should include the original debt, interest, attorney fees, and court costs. Check if it seems inflated.
• The deadline to respond. Circle this date. Miss it and you lose automatically.

Many debt lawsuits contain errors. The collector might sue for the wrong amount, claim you owe a debt you already paid, or fail to attach documents proving you owe anything. These mistakes become your defenses.

Who Actually Owns Your Debt?

Original creditors like Chase or Capital One rarely sue. They sell charged-off debts to collection agencies for 3-5 cents on the dollar. That agency might resell it again. By the time you're sued, the plaintiff is often a third or fourth owner of the debt.

This matters because the collector must prove a clear chain of ownership. If they can't show documentation that they legally own your debt, the case gets dismissed. About 40% of debt lawsuits lack proper documentation.

Step 2: File Your Answer Before the Deadline

Your Answer is a formal legal document that responds to each allegation in the Complaint. This is not optional. If you want to fight the lawsuit, you must file an Answer by the deadline.

What Goes in an Answer

An Answer has three parts:

1. Responses to allegations. The Complaint is numbered,paragraph 1, paragraph 2, etc. For each one, you write:

• "Admit" if it's true (e.g., "Defendant resided in Florida").
• "Deny" if it's false or you don't recognize it (e.g., "Defendant owes $7,423.18").
• "Deny due to lack of knowledge" if you genuinely don't know (common for claims about when the debt was charged off).

2. Affirmative defenses. These are legal reasons the lawsuit should fail even if the collector's facts are correct. Common defenses include:

• Statute of limitations. In most states, collectors can't sue on debts older than 3-6 years. If your debt is older, the case should be dismissed.
• Lack of standing. The plaintiff can't prove they own the debt.
• Failure to state a claim. The Complaint doesn't include enough detail to justify a lawsuit.
• Payment or settlement. You already resolved this debt.

3. A request for relief. You ask the court to dismiss the case and make the plaintiff pay your court costs.

How to File Your Answer

Once you've drafted your Answer:

• Print three copies: one for the court, one for the plaintiff's attorney, one for your records.
• Mail one copy to the plaintiff's attorney via certified mail (their address is on the Complaint).
• File the original with the court. Some courts accept online filings; others require you to mail it or drop it off in person. Call the clerk's office to confirm.
• Pay the filing fee. This ranges from $0 to $400 depending on your state and county. If you can't afford it, request a fee waiver.

Your Answer must arrive at the court before the deadline. If it's due on day 21, mail it by day 14 to be safe.

Can You Do This Without a Lawyer?

Yes. Thousands of people file Answers on their own every month. The legal writing doesn't have to be perfect. Courts give leeway to self-represented defendants. What matters is that you respond in time and deny the key claims.

That said, if the amount is over $5,000 or the collector has strong evidence, hiring an attorney improves your odds. Many consumer lawyers offer free consultations. Some work on contingency, meaning they only get paid if they win or settle favorably.

Step 3: Force the Collector to Prove Their Case

Filing an Answer doesn't end the lawsuit. It starts the discovery phase, where both sides exchange evidence. This is where you go on offense.

Send Requests for Production

You have the right to demand documents from the plaintiff. Send a formal request asking for:

• The original signed credit agreement
• Monthly account statements showing the balance
• Proof of the debt's chain of ownership (e.g., a bill of sale)
• Verification that they're licensed to collect in your state

Many collectors can't produce these documents. They bought your debt as part of a portfolio of thousands of accounts. If they can't provide proof, you file a Motion for Summary Judgment asking the court to dismiss the case.

Attend the Hearing

If the case isn't dismissed, you'll get a court date. This might be a settlement conference or a trial. Show up. Dress business casual. Bring your evidence and a timeline of events.

At the hearing, the collector must prove three things:

1. You are the person who opened the account.
2. You owe the amount claimed.
3. The plaintiff owns the debt and has the right to collect.

If they fail on any point, you win. Judges are increasingly skeptical of debt buyers who show up with flimsy evidence.

Alternative Paths: Settlement and Arbitration

You don't have to take the lawsuit all the way to trial. Two other options often work better:

Negotiate a Settlement

Once you file your Answer, the collector knows you're serious. Many will agree to settle for 30-50% of the claimed amount, sometimes less. Call the attorney listed on the Summons and say, "I'd like to discuss a settlement."

Before you settle:

• Get any agreement in writing.
• Make sure it states the debt will be marked "settled in full" or "paid as agreed" (not "settled for less than owed," which hurts your credit).
• Negotiate to have the lawsuit dismissed with prejudice, meaning they can't sue again.

Never agree to a payment plan that lets them revive the lawsuit if you miss a payment. Settle in one lump sum if possible.

File a Motion to Compel Arbitration

If your debt is from a credit card, check your original cardholder agreement. Most include an arbitration clause, meaning disputes must be handled by a private arbitrator instead of court.

You can file a motion forcing the case into arbitration. This costs the collector $5,000-$10,000 in arbitration fees. For debts under $10,000, they often drop the case rather than pay those fees.

This strategy works best if the debt is legitimate and you're looking to buy time or force a dismissal. It won't help if you're trying to prove the debt isn't yours.

What If You're Already Judgment-Proof?

If you have no income except Social Security, disability, or unemployment,and no assets besides a modest car and household goods,you're judgment-proof. A collector can't garnish protected income or seize exempt property.

In that case, you can still file an Answer and attend the hearing to argue your defenses. But even if you lose, there's nothing for the collector to take. You might choose to send the plaintiff's attorney a letter explaining that you're judgment-proof, along with proof of your income sources. Sometimes they'll drop the case.

That said, judgments last 10-20 years in most states. If your financial situation improves, the collector can come back. So it's still worth fighting the lawsuit if you have valid defenses.

What Happens If You Ignore the Lawsuit?

If you don't respond by the deadline, the collector files for a default judgment. The court grants it automatically. Now they have a legal order saying you owe the money.

With a judgment, the collector can:

• Garnish up to 25% of your wages
• Freeze your bank account and withdraw funds
• Place a lien on your property
• Report the judgment to credit bureaus, tanking your score

Some states allow you to vacate a default judgment if you act quickly,usually within 30-60 days,and show good cause for missing the deadline. But it's an uphill battle. Responding on time is always easier.

Should You Consider Bankruptcy?

If you're being sued for one debt but you owe $20,000 or more in total unsecured debt, bankruptcy might be the better path. Filing Chapter 7 immediately stops the lawsuit through an automatic stay. The debt gets discharged within 4-6 months.

You can file bankruptcy even after losing a lawsuit. But if the collector has already garnished your wages or frozen your account, it takes time to undo that. Filing before the judgment is always smarter.

Use our bankruptcy screener to see if you qualify. It takes two minutes and might save you years of financial stress.

The Bottom Line

Debt collectors count on you doing nothing. When you file an Answer and show up to court, you force them to prove their case,and many can't. Even if the debt is legitimate, responding buys you leverage to settle for less or get the case dismissed on procedural grounds. You have more power than you think. Use it.