Sued for Debt? Your First 72 Hours Matter Most

You checked your mail and found a court summons. A debt collector is suing you for $8,000, $15,000, maybe more. Your hands are shaking. That's normal. But what you do in the next 72 hours determines whether you lose by default or gain real negotiating power.

Every year, debt collectors file roughly 70,000 lawsuits in courts across the U.S. Most of them end in default judgments because people don't respond. That gives collectors the legal right to garnish your wages, freeze your bank account, and place liens on your property. All without proving you actually owe the money.

You can stop that from happening. Start now.

Step 1: Find Your Deadline (You Have 20-45 Days)

The summons you received includes a response deadline. This varies by state:

• California, Florida, New York: 30 days
• Texas: 20 days (plus the Monday after the 20th day expires)
• Illinois, Pennsylvania: 30 days
• Ohio: 28 days
• Georgia, North Carolina: 30 days

Check your summons for the exact date. Mark it on your calendar. Set three alarms. This is the single most important deadline you'll face.

If you miss it, the collector wins automatically. They don't have to prove the debt is valid. They don't have to show up in court. They simply ask the judge for a default judgment, and the judge signs it. Then they can take 25% of your paycheck every pay period until the debt is satisfied.

Step 2: File an Answer (Not a Letter to the Court)

Your response is called an "Answer." It's a legal document that responds to every allegation in the complaint. This is not a letter explaining your situation. This is not a phone call to the courthouse. This is a formal court filing.

The Answer accomplishes three things:

1. It stops the default judgment clock
2. It forces the collector to prove their case
3. It gives you leverage to negotiate a settlement

What to Include in Your Answer

The complaint against you contains numbered allegations. Your Answer responds to each one. You have three options for each allegation:

• Admit: Use this only for basic facts like your name and county of residence
• Deny: Use this for everything related to the debt itself
• Lack sufficient knowledge: Use this when you genuinely don't know

Here's the strategy: Deny the allegations that matter. When the complaint says you owe $12,487.63, deny it. When it says you defaulted on the account, deny it. When it says the collector has the legal right to sue you, deny it.

This isn't lying. You're requiring them to prove their claims with actual evidence. Most debt collectors can't do that.

Affirmative Defenses to Raise

Your Answer should also include affirmative defenses. These are legal reasons why the collector might not be able to collect, even if the debt exists:

• Statute of limitations: The debt is too old to sue over (typically 3-6 years depending on your state)
• Lack of standing: The collector can't prove they own your debt
• Improper service: You weren't properly notified of the lawsuit
• Payment: You already paid all or part of the debt
• Mistaken identity: This isn't your debt

Include every defense that might apply. You can drop them later if they don't pan out, but you can't add them after your Answer is filed.

Step 3: Demand Arbitration (This Costs Them Thousands)

Most credit card agreements include an arbitration clause. This is a paragraph buried in your cardholder agreement that says disputes must be resolved through arbitration instead of court.

Arbitration is expensive for debt collectors. They have to pay filing fees between $3,000 and $10,000 just to start the process. For a $7,000 debt, that makes no financial sense. Which means they'll likely dismiss the lawsuit or offer you a settlement for pennies on the dollar.

To use this strategy, you need to:

1. Check whether your original credit card agreement included an arbitration clause
2. File a Motion to Compel Arbitration with the court
3. Serve a copy on the collector's attorney

Once you demand arbitration, the ball is in their court. Most collectors will either dismiss the case or reach out to settle. One consumer we spoke with settled a $14,000 lawsuit for $2,800 after demanding arbitration.

But act fast. Some courts require you to raise arbitration in your initial Answer, or you waive the right forever.

Step 4: Serve Your Answer on the Collector's Attorney

Filing your Answer with the court isn't enough. You must also "serve" a copy on the attorney who filed the lawsuit. This means sending them a copy by mail or, in some states, by email.

Most states require you to use certified mail with return receipt requested. Keep the receipt. You'll need proof that you served the collector if they later claim they never received it.

After mailing your Answer, file a "Proof of Service" or "Certificate of Service" with the court. This is a simple one-page document stating when and how you served the collector.

Step 5: Request Validation of the Debt

Even after filing your Answer, you should send a debt validation letter to the collector. Under the Fair Debt Collection Practices Act (FDCPA), collectors must provide:

• Proof they own your debt (often a bill of sale from the original creditor)
• An itemized accounting showing how they calculated the amount
• A copy of the original signed credit agreement
• Documentation of your last payment

Many collectors can't produce these documents. They buy debts in bulk for 4 cents on the dollar and receive nothing but a spreadsheet with names and balances. Without proper documentation, they can't win in court.

Send your validation letter via certified mail. Keep a copy for your records. If they don't respond with sufficient proof, you can file a motion to dismiss the lawsuit based on their failure to validate.

What Happens After You File Your Answer

Once you file an Answer, the case moves into the discovery phase. This is where both sides exchange documents and information. You can request:

• The original credit card agreement
• Account statements for the past several years
• Proof that the collector purchased your debt
• The chain of custody showing how your debt changed hands

Most debt collectors hate discovery. It requires them to actually do legal work and produce documents they may not have. At this stage, they often approach you with a settlement offer.

Settlement Leverage

By responding to the lawsuit, you've dramatically increased your negotiating position. The collector now faces real costs: attorney time, document production, court appearances. For a $10,000 debt, they might offer to settle for $4,000 or even less.

Before accepting any settlement:

• Get the offer in writing
• Confirm they'll dismiss the lawsuit with prejudice (meaning they can't refile)
• Ensure they'll report the debt as "paid as agreed" or delete it from your credit report
• Never give them electronic access to your bank account

If you can't afford a lump sum, propose a payment plan. Many collectors will accept monthly payments rather than continue fighting in court.

When to Hire an Attorney

You can handle a debt lawsuit yourself, but an attorney helps in specific situations:

• The debt exceeds $10,000
• The collector has strong documentation
• You're facing wage garnishment or bank levies
• Your state has complex procedural rules
• You're considering bankruptcy

Many consumer rights attorneys offer free consultations. Some work on contingency, meaning they only get paid if they win or settle your case. Others charge flat fees between $500 and $2,000 to handle the entire lawsuit.

If you're judgment-proof (no wages to garnish, no assets to seize), you might not need an attorney. But if you have income or own property, legal representation is worth considering.

You can also explore bankruptcy as an option if you're facing multiple lawsuits or overwhelming debt. Chapter 7 bankruptcy immediately stops all collection lawsuits and can discharge most credit card debt within four months.

What If You Already Missed the Deadline?

If a default judgment was entered against you, you still have options:

File a Motion to Vacate: If you never received proper service or have a valid excuse for missing the deadline, you can ask the judge to set aside the default judgment. Courts are more likely to grant this if you file within 30 days of the judgment.

Claim exemptions: Even with a judgment, certain income and assets are protected from garnishment. In most states, Social Security benefits, disability payments, and retirement accounts can't be touched. You may also be able to protect a portion of your wages.

Negotiate post-judgment: Collectors often settle for less even after winning a judgment. They'd rather get 40% of the debt now than spend years chasing you.

File bankruptcy: A bankruptcy filing stops wage garnishment immediately and can eliminate the judgment debt. If you're facing garnishment of 25% of your paycheck, bankruptcy might be your fastest path to relief.

Check our bankruptcy qualification screener to see if you're eligible.

The Collector's Weaknesses

Debt collectors win most lawsuits by default. When you actually respond, you expose their weaknesses:

They can't prove ownership: Debt buyers often can't produce the chain of documents showing they legally own your debt. Without this, they have no standing to sue.

They lack original documents: The original creditor rarely transfers account statements, signed agreements, or payment records. Collectors work from incomplete spreadsheets.

The statute of limitations has expired: Many collectors sue on time-barred debt, hoping you won't notice. If your last payment was 7 years ago and your state has a 6-year statute of limitations, the lawsuit should be dismissed.

The amount is inflated: Collectors add interest, fees, and attorney costs that may not be legally allowed. Challenging the amount often results in significant reductions.

By filing an Answer and demanding proof, you force the collector to overcome these hurdles. Many can't do it.

Your Rights Under Federal Law

The Fair Debt Collection Practices Act gives you specific protections when collectors sue you:

• They cannot harass or threaten you
• They must validate the debt if you request it
• They cannot contact you at work if you tell them to stop
• They cannot misrepresent the amount you owe
• They cannot contact third parties about your debt

If a collector violates the FDCPA, you can countersue for damages up to $1,000 plus attorney fees. Some consumers have used FDCPA violations as leverage to settle the underlying debt for nothing.

Document every interaction with collectors: dates, times, who you spoke with, what they said. If they threaten you, lie about the debt, or contact you after you've requested they stop, you have a potential FDCPA claim.

State-Specific Considerations

Debt collection laws vary significantly by state. A few important differences:

Wage garnishment limits: Federal law allows collectors to take 25% of your disposable income. But some states provide more protection. In Texas, North Carolina, Pennsylvania, and South Carolina, wage garnishment for consumer debt is prohibited or severely restricted.

Statute of limitations: This ranges from 3 years (Kentucky, Louisiana) to 15 years (Kentucky for written contracts). Most states fall between 4-6 years. Once the statute expires, you have an absolute defense against the lawsuit.

Homestead exemptions: If a collector gets a judgment and tries to place a lien on your home, state homestead exemptions determine how much equity is protected. In Texas and Florida, your primary residence is almost completely protected. In other states, only $50,000-$100,000 of equity is exempt.

Research your state's specific laws or consult with a local consumer rights attorney who knows the nuances.

Act Now, Not Later

The worst thing you can do is ignore the lawsuit. That default judgment becomes a 10-year nightmare that follows you from job to job, bank account to bank account.

File your Answer. Demand arbitration if available. Request validation. Challenge their documentation. Negotiate from strength, not desperation.

You have rights. Use them.