By Philip Tirone
Getting served is scary: Your stomach drops, your mind races, and it is tempting to slide the envelope into a drawer and hope it goes away. This is normal and common, but ignoring the lawsuit isn’t helpful.
Take a breath. You can handle this, and we’re here to show you how.
In my work with attorneys and consumers, I see the same pattern. People fear court, so they procrastinate. They end up missing the deadline for responding, so they lose by default.
Once a creditor has a judgment, they can start garnishing wages or levying your bank account.
The good news is that it’s relatively simple to file a timely response, which buys you time to weigh options that fit your life and budget. Let’s break it down, step-by-step.
What’s the First Thing You Should Do in a Debt Collection Lawsuit?
The first thing you should do in a debt collection lawsuit is open the papers and read them from top to bottom. You are looking for four basic pieces of information:
- Who and what: Check that your name is correct. Then note the creditor or law firm as well as the amount that they say you owe. If the creditor name looks unfamiliar, it may be a debt buyer collecting on an old account. That matters because later in the process, you’ll ask for proof that the debt belongs to you.
- Which court: Find the court name and case number on the first page. You will need both when you file your response.
- The deadline: Locate the deadline on the summons. Many courts give 15, 20, or 30 days to respond from the date you were served. Circle the date and put it on your calendar with three reminders: one the week before, another three days before the deadline, and finally the morning it is due.
- Service instructions: Look for any information that explains how to respond. Some courts require you to mail or e-serve a copy to the plaintiff’s lawyer the same day you file.
How Do You File a Response?
The most important part of filing a response is that you do it on time. If you miss the deadline, the creditor can win by default, which allows them to use stronger tools to collect the outstanding debt, like wage garnishment and bank levies.
Most courts have specific forms you need to submit for your response. Check your state rules and local forms. If you cannot find a form, your courthouse clerk may point you to one.
hen, check the paperwork for accuracy.
- Does the balance look right?
- Do you recognize the account?
- Is the plaintiff the original creditor or a collection firm working on behalf of a creditor?
Accuracy matters. Even if the debt is yours, the amount can be wrong, or the plaintiff may not have the paperwork to prove it. You can use this information in your response to force the creditor to prove its case. For instance, you could write:
“I do not believe that the debt in the Complaint belongs to me. I have never done business with the ABC Creditor. I request proof of the alleged debt and the full accounting of the amount claimed.”
Sign and date your response, and then file it with the clerk before the deadline. Mail or deliver a copy to the creditor’s lawyer if your rules require service, and keep a paper trail (such as copies or receipts of certified mail).
After you answer, the case moves at normal speed. There may be discovery, document requests, or a later hearing. The important part is that your answer prevents an automatic loss and buys time to consider the big picture.
What’s the Big Picture?
Once you have filed the response, it’s time to zoom out and look at the big picture. If the suit is for $300, and it is your only debt, paying it (or negotiating a payment plan) might be the simplest way forward.
On the other hand, if you are already behind on $20,000 in credit card bills, paying a $300 bill could complicate your finances. You might be better off saving that money to hire a bankruptcy attorney, where you could pay $1,500 in bankruptcy and attorney fees to wipe away $20,000 in debt—including that $300 bill.
Importantly, now is the time to talk to a bankruptcy attorney. This might sound intimidating, but most of them offer a free consultation, and you’ll walk away with a clearer idea of your options. An attorney can help you compare options like settlement, defense, or a bankruptcy that stops collection and sets you up to rebuild.
FAQ: I was served by a debt collector. What do I do first?
FAQ: How many days do I have to respond to a debt lawsuit?
It depends on your court, but you’ll likely have anywhere from ten to thirty days to respond to a debt lawsuit. The exact deadline will be printed on your summons.
FAQ: What happens if I ignore a debt lawsuit?
If you ignore a debt lawsuit, you can get a default judgment that lets the creditor collect on the debt without your side being heard. With a judgment, collectors may use stronger tools under state law, such as wage garnishment, bank levies, and liens, and you lose leverage to negotiate. The FTC and CFPB both warn debtors not to ignore court papers because a default judgement eliminates options meant to protect consumers.
FAQ: Do I need a lawyer to file my first response?
No, you do not need to hire a lawyer to file a response to a debt lawsuit.
Most courts offer forms, and many have e-filing portals. That said, after you file, you should consider talking to a bankruptcy attorney to discuss your options. Most offer free consultation, and you might be pleasantly surprised to learn that it is far cheaper to hire an attorney than it is to pay your debt.
FAQ: Will filing bankruptcy stop a wage garnishment or judgment that already started?
Yes, filing bankruptcy will stop wage garnishments and judgements. Once bankruptcy paperwork is filed, something called an “automatic stay” goes into effect. This is a legal requirement under the 11 U.S.C. § 362. Learn more about the automatic stay in this short video.
Philip Tirone started his career as a mortgage broker more than 30 years ago and noticed something troubling. Clients were kept in the dark about how credit, collections, and debt really work. This set a mission in motion: Philip created 7 Steps to a 720 Credit Score as a free credit-education program that helps people navigate debt, credit-scoring, and options.
