Getting a legal notice about an outstanding debt can be scary, frustrating and confusing. But don’t ignore that letter: Going to court over a bill is more common than you’d think, and there are people out there who can help.
This guide will walk you through exactly what to expect, how to respond and what your options are.
Step 1: Understand What the Lawsuit Is About
When you’re sued, you’ll receive two documents: a summons and a complaint. The summons tells you that a lawsuit has officially been filed, while the complaint explains why you’re being sued, who is suing you and how much they say you owe.
Between the legalese and the subject matter, you might be tempted to just put the letter aside and see what happens. But don’t ignore it: Your deadline to respond is usually 20 to 30 days from when you receive the notice. If you miss it, the court may decide the case without hearing your side.
Step 2: File an Answer Before the Deadline
When you file an Answer, you tell the court your side of the story. Remember, without a response, your collector can win automatically. Providing an Answer can help you find a solution with your debt collector — and bring your humanity to the case.
A good Answer will include three things:
- A clear statement saying which parts of the complaint you agree with, disagree with or don’t know about
- Any defenses you want the court to consider (e.g. the debt is too old or it’s not your debt)
- Your name, case number and contact info
Be sure to file your Answer with the court before your deadline, and send a copy to the company or law firm that filed the case. Using certified mail for these communications is advisable — you’ll want to have records of sending your Answer, just in case something goes wrong.
Step 3: Know What to Expect in Court
If you file an Answer, you may be asked to show up in court. It might be in person, or it could happen by phone or video, depending on your local court.
Usually, your court date will involve confirming your identity, answering the judge’s questions about the case, explaining your hardship, supplying evidence and listening to your creditor’s case against you. The judge may settle the matter in that court appearance, or schedule another hearing.
You don’t need a lawyer to go to court, but showing up is important. It tells the court you’re taking it seriously, and it gives you a chance to push back if something’s not right.
Step 4: If the Collector Wins
If the collector wins the lawsuit, the court may issue a judgment against you. That gives them the legal right to try to collect the money through methods like wage garnishment, bank levies or property liens.
That said, not all income can be garnished. Some sources of income cannot be taken, like Social Security Income, Veterans’ benefits, unemployment benefits and certain pensions. If you receive protected income, you still need to respond to the lawsuit. But you can let the court know that those funds are exempt.
Step 5: Explore Help and Recovery Options
Just because you’ve been sued doesn’t mean your financial future is ruined. Once you’ve responded to the case, it’s a good time to look at next steps that help you move forward.
You might investigate securing legal support through a legal aid organization or through the court system itself. You might be able to arrange a new repayment plan with the collector after judgment, too.
A debt lawsuit can feel like the worst-case scenario, but it’s something you can manage. The key is to treat it as an opportunity, not as something to ignore. Even if you’re not sure you can win, filing an Answer gives you a voice — and a chance — at finding a better path forward.
The content and resources provided are for informational purposes only and should not be construed as legal advice.