Win Your Debt Lawsuit: Your Questions Answered

Around 10 million Americans get sued for debt each year. You are not alone.

The good news? People who respond to debt lawsuits have a 70% win rate. Without a response, the win rate drops below 10%.

Fighting back dramatically increases your chances of winning.

How Debt Collectors Exploit the System

Debt collectors count on you not responding. You get sued for a $1,000 debt. An attorney costs $3,000.

Doing it yourself seems impossible. You need forms, filing fees, and courthouse access during business hours.

Your 21-day deadline passes. That $1,000 debt becomes a $3,600 judgment overnight.

But you can fight back. Our partner Solo makes it simple to respond and win.

Three Steps to Respond to Your Debt Lawsuit

Responding to a lawsuit protects your rights and puts you in position to win.

Step 1: Answer Each Claim

You must respond to every claim in the complaint and summons. Go through each allegation one by one.

Deny what you disagree with. Admit only what you know is true.

Step 2: Assert Your Affirmative Defenses

Affirmative defenses are legal reasons why you should win. You only get one chance to assert them.

Common defenses include:

• Statute of limitations has expired
• Debt was already paid
• Wrong person being sued
• Collector lacks documentation
• Amount is incorrect

Many free court forms skip affirmative defenses entirely. Filing without them weakens your case.

Step 3: File Your Answer Before the Deadline

Most states give you 14 to 30 days to respond. Missing this deadline means you automatically lose.

You must file your Answer with the court. You must also send a copy to the plaintiff’s attorney by certified mail.

Our partner Solo files your Answer online in all 50 states. No courthouse visits required.

Force Collectors Into Arbitration

Many credit card agreements include arbitration clauses. You can use these clauses against debt collectors.

Check your credit card agreement for an arbitration clause. The Consumer Financial Protection Bureau maintains a database of agreements.

A Motion to Compel Arbitration forces the case out of court. The collector must pay for arbitration themselves.

Most collectors refuse to pay. They drop the case instead.

This strategy works best after you file an Answer. Filing the motion puts you in a strong position to settle.

Settle Your Debt for Less

Debts settle for an average of 45% of the original amount. Settling saves you money and ends the lawsuit fast.

Filing an Answer gives you leverage. Collectors know going to trial costs them time and money.

They would rather settle than fight. Many will accept 40% to 60% of what you owe.

Always get settlement agreements in writing. Make sure the agreement states the debt is settled in full.

Never agree to a payment plan without reviewing the terms carefully.

Real Questions From People Facing Debt Lawsuits

What happens if I filed an Answer but haven’t heard back?

Delays are common. Most debt lawsuits take four to six months to resolve.

Collectors often wait more than a month before responding. Some wait until they think you’ve moved.

Check your case status online. Search for your county’s court portal and enter your case number.

Meanwhile, consider making a settlement offer. Many people settle while waiting for the collector’s response.

The plaintiff filed a Motion for Summary Judgment against me. What do I do?

File an opposition to the motion immediately. Explain why the judge should deny their request.

Request an oral hearing so you can argue your case in person. Show up to the hearing prepared.

Argue that you denied everything in your Answer. The collector must prove you owe the debt at a full trial.

Summary judgment should only be granted when there are no disputed facts. You dispute the facts.

Does making payments restart the statute of limitations?

Yes, in most states. Each state has a statute of limitations on debt collection.

Making a payment restarts the clock. The collector gets a fresh window to sue you.

For example, if your state has a three-year statute and you made a payment yesterday, the three years starts over.

But payments to the original creditor don’t prove a debt buyer owns your debt. Debt buyers must still prove they purchased the debt legally.

Can I file for bankruptcy on gambling debt from cash advances?

Most debts can be discharged through bankruptcy. Gambling debts from credit card cash advances generally qualify.

Student loans are the main exception. Gambling debt is not automatically excluded.

Speak with a bankruptcy attorney to understand your options. Get a free consultation to see if bankruptcy makes sense.

I was sued but never actually served the papers. What should I do?

This situation is called “sewer service.” Collectors sometimes send papers to the wrong address or person.

Check the court docket online. See if only the complaint was filed with no judgment.

File an Answer even if the deadline passed. Courts usually accept late Answers when you were never properly served.

If a judgment was entered, file a Motion to Set Aside Judgment. Explain you were never served properly.

Should I take my Answer to the courthouse myself?

You can, but courthouse visits can be challenging. Courts have limited hours and long lines.

Some clerks are helpful. Others are not. You might have to take time off work.

Many people pay to have their Answer filed electronically. Our partner Solo files in all courts nationwide with tracking and confirmation.

The collector won’t settle. What happens at the hearing?

Bring all documentation showing you tried to settle. Print emails and letters.

Some judges view refusal to settle negatively. Show the judge you acted in good faith.

Many settlements happen at the courthouse right before the hearing. The attorney may approach you with an offer.

If the case goes forward, the collector must prove you owe the debt. They need documentation showing chain of ownership and accurate amounts.

What Happens If You Lose

Losing a debt lawsuit allows the collector to pursue your assets. They can garnish wages and place liens on property.

Wage Garnishment

Collectors identify your employer and file a writ of garnishment. Your employer must withhold part of each paycheck.

Federal law limits garnishment to 25% of disposable income. Some states have lower limits.

Around 4 million Americans have wages garnished each year.

Property Liens

Collectors can place liens on your home or vehicle. A lien must be paid when you sell the property.

The collector gets paid before you receive proceeds from the sale.

Settlement After Judgment

You can still settle after losing. Collectors prefer settlement over garnishment.

Garnishment costs collectors money to set up and maintain. They often accept less than the judgment amount.

Make an offer quickly before garnishment starts.

Motion to Compel Arbitration Fees

Most credit card arbitration clauses require the party bringing the lawsuit to pay fees. The collector pays, not you.

Credit card companies designed these clauses to stop customers from suing them. They didn’t anticipate customers using the clauses defensively.

Read your specific credit card agreement for official terms. Nearly all major credit cards require the collector to pay.

Very few cases actually proceed to arbitration. Collectors usually drop the case or settle instead.

Maryland and Other State-Specific Rules

Some states have unique procedures. Maryland, Texas, and Oklahoma use different terminology.

Texas and Oklahoma use “citation” and “petition” instead of summons and complaint. The documents serve the same purpose.

Some East Coast states issue warrants instead of summons. You may need to appear in court instead of filing a written Answer.

Check your state’s specific requirements. Search for your state’s debt lawsuit procedures online.

Settlement Negotiations and Stipulated Judgments

Most settlement agreements include a stipulated judgment. This protects the collector if you don’t pay.

For example, you owe $10,000 and settle for $6,000. You sign an agreement to pay within 30 days.

The stipulated judgment says if you don’t pay, the collector automatically wins the full judgment.

Pay on time and the stipulated judgment never activates. Your credit report shows a settlement, not a judgment.

Always get payment terms in writing. Review terms carefully before signing.

Common Settlement Amounts

Collectors often counter at 80% of the debt. This is their most common starting position.

If your offer is within 20% of their acceptable range, settlement is likely. Larger gaps reduce settlement chances.

Most settlements land between 40% and 70% of the original debt.

Discovery Requests and Next Steps

After you file an Answer, the case enters the discovery phase. Both sides request information from each other.

Plaintiffs usually start discovery with interrogatories and requests for admissions. You must respond honestly within the deadline.

You can request information from the plaintiff showing they own the debt. Ask for documentation proving the amount and ownership.

Many collectors cannot produce proper documentation. Missing documentation strengthens your case.

When to Show Up in Court

If your summons lists a hearing date, you must appear. Missing the hearing means you lose automatically.

Most summons list a deadline to file an Answer, not a hearing date. Read your paperwork carefully.

Courts schedule hearings after the Answer is filed. You receive notice of the hearing separately.

Show up early on your hearing date. Bring all relevant documents and evidence.