Talk About Debt FAQ: Your Debt Relief Questions, Answered

You've got questions. We've got answers rooted in case law, consumer protection statutes, and a decade of watching debt collectors operate. No fluff. No vague sympathy. Just clear guidance on what works when debt has you cornered.

What is Talk About Debt?

Talk About Debt is an information resource for people facing debt lawsuits, considering bankruptcy, or fighting back against aggressive collectors. We publish research-backed guides on your legal rights under the Fair Debt Collection Practices Act (FDCPA), bankruptcy exemptions, lawsuit defense strategies, and credit repair after a financial crisis.

We don't sell magic bullets. We show you the actual legal tools available, explain how they work, and connect you to qualified attorneys when DIY won't cut it.

Who writes your content?

Our editorial team includes consumer rights journalists, bankruptcy paralegals, and debt defense specialists. Every article cites federal statutes, case precedent, or data from the Consumer Financial Protection Bureau. When we cover a topic like bankruptcy exemptions, you get state-specific dollar amounts and real filing strategies, not generic reassurance.

Is Talk About Debt free to use?

Yes. Every guide, checklist, and explainer is free. We make money through attorney referral partnerships and educational products, but accessing our content costs you nothing.

Can you help me file bankruptcy?

We help you understand whether bankruptcy is the right move and what to expect. Our bankruptcy screener walks you through the means test, exemption planning, and timing considerations. If you qualify and want to proceed, we connect you with vetted bankruptcy attorneys in your area. Chapter 7 filers typically pay $1,500 to $2,000 in legal fees. Chapter 13 runs higher because the case lasts three to five years.

Some people can file pro se (without a lawyer), but bankruptcy courts reject about 40% of pro se cases due to paperwork errors. If you own property, have multiple creditors, or face wage garnishment, hire counsel.

What if I've already been sued for debt?

You have a narrow window to respond. Most states give you 20 to 30 days from the date you were served. Miss that deadline and the court enters a default judgment, which lets the creditor garnish your wages, freeze your bank account, or place a lien on your house.

Your first move: file an Answer. This is a legal document that admits or denies each claim in the lawsuit. You don't need a lawyer to draft one, but you do need to follow your state's civil procedure rules. A basic Answer costs $50 to $300 if you hire a document prep service. Filing it yourself costs only the court filing fee (usually $75 to $150).

After you file, the collector has to prove you owe the debt, that they have the right to sue, and that the amount is accurate. About one-third of debt lawsuits collapse because the collector can't produce proper documentation.

How do I settle a debt lawsuit?

Start by pulling your credit report to confirm the debt is accurate and within your state's statute of limitations. If it's legit, calculate what you can realistically pay in a lump sum. Collectors typically accept 40% to 60% of the balance to close a case.

Send a written settlement offer. Include the exact dollar amount, the payment deadline, and a demand that they dismiss the lawsuit with prejudice (meaning they can't refile later). Get the agreement in writing before you pay. If they refuse, you proceed to trial.

Be prepared for them to reject your first offer. They drag their feet because time works in their favor—interest and legal fees pile up. But if you've filed an Answer and they see you're not rolling over, they're more likely to settle.

What happens if I lose the lawsuit?

The court enters a judgment against you, which is public record and wrecks your credit score. The creditor can then use that judgment to:

• Garnish up to 25% of your disposable wages (the amount varies by state).
• Freeze your bank account and seize the balance.
• Place a lien on your home, collected when you sell or refinance.
• Seize non-exempt personal property through a writ of execution (rare but possible).

Judgments last 10 to 20 years depending on your state, and most can be renewed. But you still have options. If your income is below the federal poverty line, you may be judgment-proof,meaning there's nothing for them to take. If you qualify for bankruptcy, the judgment gets discharged along with the underlying debt.

Can I represent myself in a debt lawsuit?

Yes, and about 90% of defendants do. The problem is that 70% lose because they don't show up or don't file an Answer. If you file on time and show up to court, you dramatically improve your odds.

That said, if the debt is under $5,000 and the collector has weak documentation, you're in the driver's seat. If the debt is $20,000 and they have a signed credit card agreement, you might want to hire an attorney. Most consumer defense lawyers charge $1,000 to $3,000 to represent you through trial.

How do I stop debt collectors from calling me?

Send a cease-and-desist letter. Under the FDCPA, collectors must stop contacting you once they receive written notice that you refuse to pay or want them to stop calling. Mail it certified with return receipt. They can still sue you, but the calls stop.

If they ignore your letter, file a complaint with the Consumer Financial Protection Bureau (CFPB) and your state attorney general. You can also sue them in small claims court. FDCPA violations carry statutory damages of up to $1,000 plus attorney fees.

What's the statute of limitations on debt?

It depends on your state and the type of debt. For credit card debt, the range is three to six years in most states. Medical debt and personal loans follow similar timelines. Once the statute expires, the debt is "time-barred," meaning collectors can't sue you for it.

But be careful. If you make a payment or acknowledge the debt in writing, the clock restarts in many states. Collectors know this and will try to trick you into reaffirming old debt. If a collector contacts you about a debt older than four years, check your state's statute before responding.

Will bankruptcy stop a lawsuit?

Yes. The moment you file, the court issues an automatic stay that halts all collection activity, including lawsuits, wage garnishments, and foreclosure proceedings. The creditor has to stop immediately or face sanctions.

If a judgment has already been entered, bankruptcy discharges the debt but doesn't erase the public record of the judgment. The lien stays on your property until you pay it or negotiate a release, unless you file a motion to avoid the lien under 11 U.S.C. § 522(f).

How do I rebuild credit after bankruptcy?

Start with a secured credit card. You put down a deposit (usually $200 to $500), and the bank gives you a credit line equal to that amount. Use it for small purchases and pay it off every month. Within 12 months, your score will start climbing.

Bankruptcy stays on your credit report for seven years (Chapter 13) or ten years (Chapter 7), but your score can recover much faster. Most filers see scores above 700 within three to five years if they manage credit responsibly. The key is time and consistency. No quick fixes exist.

Can I get sued again after settling a debt?

Not if the settlement agreement includes a release and dismissal with prejudice. Those terms bar the creditor from refiling. But if the agreement just says "paid in full" without legal release language, they could theoretically sue again. Always demand written confirmation that the lawsuit is dismissed and the debt is satisfied in full.

What if I can't afford to pay anything?

You might be judgment-proof. If your only income is Social Security, SSI, or unemployment benefits,all of which are exempt from garnishment under federal law,there's nothing for a creditor to take. Your best move is to file an Answer and tell the judge you're judgment-proof. They'll still enter a judgment, but it's unenforceable.

That said, if your financial situation improves later, the creditor can come back and try to collect. And the judgment will damage your credit. If you have significant debt and no assets, bankruptcy might be a cleaner exit.

How do I find a good debt defense attorney?

Look for someone who focuses on consumer law, not general practice. Check their reviews on Avvo or the Better Business Bureau. Ask how many debt lawsuits they've handled and whether they charge flat fees or hourly rates.

Most consumer attorneys offer free consultations. Bring your Summons and Complaint, any collection letters, and your financial records. If they tell you to ignore the lawsuit, walk away. If they explain your defenses and give you a realistic cost estimate, you've found a contender.

Do you offer legal advice?

No. We're not a law firm. Everything on this site is educational, based on federal and state law as it exists today. Your situation is unique. If you need advice tailored to your case, consult a licensed attorney in your state.

That said, our goal is to give you enough information to make smart decisions and advocate for yourself. The legal system is designed to be accessible to people without lawyers,it's just not always obvious how to use it. We fix that.

The Bottom Line

Debt lawsuits are terrifying, but they're not automatic losses. You have defenses, rights, and options. Start by filing an Answer, explore settlement if the debt is legitimate, and consider bankruptcy if you're drowning. Don't wait until they've garnished your paycheck to act.