How to Respond to a Debt Collection Lawsuit: A Step-by-Step Guide

Being served with a debt collection lawsuit can feel overwhelming, like a ticking clock you can’t turn off. The truth is, time is ticking. In most states, you have between 14 to 30 days from the date you were served to respond. If you do nothing, the court can enter a default judgment against you, allowing the creditor to garnish wages, seize bank accounts, or place liens on property.

The good news? You can fight back, but you need to act quickly and strategically. Here’s your step-by-step guide to responding to a debt collection lawsuit.

Step 1: Read the Summons and Complaint Carefully

The summons tells you when and where you need to respond, and the complaint lists the claims the creditor (or debt collector) is making against you.

Key details to note:

• Deadline to respond (varies by state)

• Court location

• Plaintiff’s name (the party suing you — may be the original creditor or a debt buyer)

• Amount claimed

• Any attached documents (such as contracts, statements, or affidavits)

Tip: Do not ignore the lawsuit even if you think it’s a mistake or you don’t recognize the debt. Ignoring it almost always results in losing automatically.

Step 2: Verify the Debt

Debt collection lawsuits often contain errors. Before you respond, check:

• Is the debt amount correct?

• Is the plaintiff the rightful owner of the debt?
  (Debt buyers must prove they own your account through a valid chain of assignment.)

• Has the statute of limitations expired?
  (Each state has a time limit for suing on a debt — if it’s too old, you can raise this as a defense.)

• Do you actually owe this debt? Or could it belong to someone else with a similar name?

Step 3: Decide How You’ll Respond

Your formal response is called an Answer. In it, you either:

• Admit the allegations (not recommended unless you are certain and plan to settle),

• Deny the allegations (forcing the creditor to prove their case), or

• State you lack sufficient information (also forces proof).

Step 4: Assert Affirmative Defenses

Affirmative defenses are legal reasons why the creditor should lose even if their facts are true. Common defenses include:

• Statute of limitations has expired

• Improper service (you weren’t legally served)

• Lack of standing (the plaintiff cannot prove they own the debt)

• Debt already paid, settled, or discharged in bankruptcy

• Identity theft or mistaken identity

Tip: These must usually be stated in your Answer, you can’t add them later.

Step 5: Draft and File Your Answer

Your Answer should:

1. Address each numbered paragraph in the complaint (admit, deny, or lack knowledge).

2. List your affirmative defenses.

3. Be signed, dated, and include your contact info.

4. Follow the format required by your court (some have standard forms).

Where to file:

File the original with the court clerk and send a copy to the plaintiff’s attorney. Keep proof of both.

Step 6: Avoid Common Mistakes

• Missing the deadline — Even one day late can mean losing automatically.

• Admitting too much — Anything you admit is binding.

• Ignoring court notices — Even after filing your Answer, you must attend all hearings and comply with deadlines.

• Paying without an agreement — Payment can reset the statute of limitations in some states.

Step 7: Consider Settlement or Negotiation

Filing an Answer keeps your options open. You can:

• Negotiate a lump-sum settlement (often for less than claimed)

• Set up a payment plan

• Request debt validation

• Explore bankruptcy as a last resort

Step 8: Prepare for the Next Stage

Once your Answer is filed, the case moves into discovery — exchanging evidence. Be ready to:

• Request the plaintiff’s documents proving the debt

• Submit your own evidence

• Attend hearings or mediation

Bottom Line

Responding to a debt collection lawsuit isn’t just about buying time — it’s about leveling the playing field. Debt collectors count on consumers not responding; once you push back, the burden shifts to them to prove their case.

If you’re unsure how to proceed, consult a consumer rights attorney or a legal aid organization in your area. Even a short consultation can help you avoid costly mistakes.

Pro Tip: Many debt buyers lack the paperwork to prove their claim. A well-prepared Answer and defense strategy can lead to dismissal before trial.