Offering high-quality, cost-effective representation to consumers throughout Maryland

What steps can you take if a debt collector sues you?

Facing a lawsuit from a debt collector can be challenging, but understanding your options and taking the right steps can help you navigate the process effectively. Acting promptly and knowing your legal rights are essential for protecting yourself and achieving the best possible outcome. 

There are several steps you should take if a debt collector files a lawsuit against you.

Respond promptly to the lawsuit

Failing to respond to a lawsuit can result in a default judgment against you, which could allow the debt collector to garnish your wages or seize assets. Review the court summons thoroughly to identify deadlines and requirements for responding. Typically, you will need to file an “answer,” which is a legal document outlining your response to the claims made in the lawsuit.

Verify the accuracy of the debt

Before proceeding, confirm that the debt in question is valid. Debt collectors are required by law to provide detailed information about the debt, including the total amount owed and the original creditor. If you suspect errors, you have the right to dispute the debt and request verification. Ask the collector for documentation, such as account statements or contracts, to ensure the claim is legitimate.

Explore possible legal defenses

There are several defenses that could apply in a debt collection case. For instance, the debt may be time-barred under the statute of limitations, meaning the collector can no longer enforce it through the courts. In Maryland, the statute of limitations for most debts is three years, but this period can vary based on the type of debt. Other defenses include identity theft, fraud, or mistakes in the calculation of the debt amount. These defenses should be included in your response to the court.

Attend all court proceedings

Participation in all scheduled court hearings is critical. Failing to appear could result in a judgment against you, regardless of the debt’s validity or your defenses. Attending the hearings allows you to present your case and respond to any arguments made by the debt collector. Preparation is key, so review your documentation and organize your defense before appearing in court.

By taking these steps, you can approach the lawsuit with confidence and work toward a resolution that minimizes financial harm.