How to Fight a Consumer Debt Lawsuit

If you've fallen behind on your consumer debt payments, there is a possibility that a creditor may sue to recoup the money they are owed. Whether or not a creditor will sue depends on a number of factors, but if you find yourself facing a creditor lawsuit it's important to know what steps to take to defend yourself.

Instructions

1

Read the summons carefully. As the plaintiff, the creditor is required to serve you with notice, which usually comes in the form of a written summons detailing who is suing you and for what amount. You may be required to file a response with the court or enter a defense before the case goes to trial.

2

Once you've identified who it is that is suing you, you must request validation of the debt by the creditor. This means that the creditor must provide written proof that you owe the debt in question and they have legal standing to collect on it. Under the Fair Debt Collection Practices Act (FDCPA), you have 30 days from receiving notice of a debt to request this validation. Once you make the request for validation, collection efforts on the debt must cease until the required proof is provided.

3

Request verification of the collection agent's license and check to see whether your state requires licensing to collect on debts. If your state requires licensing and the collection agent is unlicensed, they are in violation of state law and cannot bring the suit.

4

Check the statute of limitations regarding consumer debt in your state. Each state has different laws regarding the time frame for how long specific types of debts can be collected on after the date of the first missed payment. After this time period has passed, the debt is considered uncollectable. You need to check your credit report to see when the debt was first reported as delinquent and by whom, as some collection agencies will re-age debt in an attempt to work around the statute of limitations.

5

Document any harassment on the part of the creditor or collection agent, including any violations of the Fair Debt Collection Practices Act. If you are able to prove that the debt collector has violated your rights in attempting to collect the debt, then you may be able to file a countersuit in your defense.

6

You may consider making a settlement offer to the creditor as a show of good faith, but you should only do so if they have been able to provided documented validation of the debt and the statute of limitations has not expired. If you make any such offers and they are rejected by the creditor, keep a written record so that you can demonstrate to the judge that you have attempted to make good on the debt.

7

If you have exhausted all other avenues and have no assets to repay the debt, you will need to provide proof of this in court. If you can establish that you are judgment-proof, then even if a judgment is entered against you, creditors will be unable to collect until your financial situation improves.