Getting sued over unpaid debt can be overwhelming, especially if the court papers arrive without warning. Whether it’s a credit card balance, medical bill, or personal loan, ignoring the lawsuit will not make it go away. You need to respond quickly, understand your rights, and protect your finances from further damage.

Step 1: Read the Court Documents Carefully

When you’re served with a debt lawsuit, the paperwork will include a summons and a complaint. The summons tells you when and where to respond. The complaint outlines who is suing you, how much they claim you owe, and why.

Do not assume the amount is correct. Debt buyers often sue for inflated balances or include fees that were never agreed to. Review every line and check for errors in your name, account number, or payment history.

Step 2: Respond Before the Deadline

Most states give you 20 to 30 days to file a written response. This is called an “answer.” If you don’t respond, the court may issue a default judgment, which allows the creditor to garnish your wages or freeze your bank account.

Your answer should include:

• A denial or admission of each claim
• Any defenses you want to raise (such as identity theft or expired statute of limitations)
• A request for proof of the debt

You don’t need to explain your entire financial situation. Stick to the facts and keep it professional. If you’re unsure how to format your response, use free templates from legal aid websites or court self-help centers.

Step 3: Request Proof of the Debt

You have the right to demand documentation. Ask the plaintiff to provide:

• A copy of the original contract or agreement
• A full payment history
• Proof that they own the debt (especially if it was sold to a third-party collector)

Many debt buyers file lawsuits without proper documentation. If they can’t prove you owe the amount claimed, the case may be dismissed.

Step 4: Explore Legal Aid Options

If you can’t afford a lawyer, look for free or low-cost legal help. Start with:

• Local legal aid organizations
• State bar association referral programs
• Court-based self-help centers
• Law school clinics

Some nonprofits specialize in debt defense and may offer representation or help you prepare your response. Even a short consultation can help you avoid costly mistakes.

Step 5: Understand the Risks of Ignoring the Lawsuit

Ignoring a debt lawsuit can lead to:

• Default judgment against you
• Wage garnishment
• Bank account seizure
• Damage to your credit report
• Additional legal fees

Once a judgment is entered, it becomes harder to negotiate or reverse. Responding on time keeps your options open and shows the court you’re taking the matter seriously.

Step 6: Consider Negotiation or Settlement

If the debt is valid and you want to avoid trial, you can try to settle. Contact the creditor or their attorney and ask if they’re open to a payment plan or lump-sum settlement. Get any agreement in writing before sending money.

This is where debt settlement options come into play. Some organizations help negotiate lower balances or structured payments. Be cautious of companies that charge high upfront fees or make unrealistic promises. Always verify their credentials and read reviews before signing up.

Step 7: Prepare for Court If Needed

If the case moves forward, you may need to appear in court. Dress professionally, bring copies of all documents, and be ready to explain your position. If you’ve requested proof and the creditor hasn’t provided it, raise that issue with the judge.

You can also file a motion to dismiss if the lawsuit is flawed or the debt is too old. Many states have statutes of limitations that prevent creditors from suing after a certain number of years.

Being sued over debt doesn’t mean you’ve lost. It means you need to act. Read the documents, respond on time, and seek legal help if needed. Whether you fight the claim, settle, or negotiate a payment plan, taking control of the process protects your rights and limits financial damage.