Being Sued Over a Debt?

The single most important thing: don’t ignore the lawsuit.

Most debt-collection lawsuits end in default judgments — not because the creditor had a strong case, but because the defendant didn’t respond in time. Once the court enters a default judgment against you, the plaintiff can freeze your bank account and garnish your wages.

Response deadlines vary by state, but they’re often 20–30 days from the date of service. If you’ve been served, the clock is already running.

What we look at in a debt lawsuit

• Chain of title

  Is the plaintiff the actual owner of the debt? Debt buyers often file suit without the paperwork to prove they legally bought the debt from the original creditor. When they can’t prove ownership, the case collapses.

• Statute of limitations

  Every state has a deadline for creditors to sue on a debt. Once it expires, the debt is "time-barred." Debt buyers routinely file on time-barred debts anyway, hoping defendants won’t know to raise the defense.

• Service of process defects

  If you weren’t properly served the summons, the court didn’t get jurisdiction over you — any judgment can be vacated. Improper service (wrong address, served to wrong person, "sewer service") is common in collection lawsuits.

• FDCPA counterclaims

  If the collector violated the Fair Debt Collection Practices Act in how they pursued the debt — harassing calls, threatening letters, misrepresenting the debt — we assert an FDCPA counterclaim. Collectors often settle the underlying case quickly once counterclaims are on the table.