You open your mailbox and there it is — a summons. A credit card company or debt collector is suing you. Your stomach drops. But here’s what you need to hear right now: this is not the end of the road. Millions of Americans are sued for debt every year, and many of them successfully defend themselves or negotiate favorable settlements. But only if they respond. The worst possible move? Doing nothing.
Why You Absolutely Cannot Ignore a Summons
When you’re served with a lawsuit, you typically have 20 to 30 days to respond (the exact timeframe is specified in the summons). If you don’t respond, the court will almost certainly grant a default judgment against you — automatically. That means the creditor wins without having to prove anything, and now they have a court-approved judgment they can use to:
- Garnish your wages (take money directly from your paycheck)
- Freeze or levy your bank accounts
- Place a lien on your property
Your First Move: Verify the Debt
Before anything else, you have the legal right to request debt validation. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must provide proof that the debt is yours and that they have the right to collect it. Many debts are sold multiple times between collection agencies, and the documentation is sometimes incomplete or even wrong.
Also check the statute of limitations. Every state has a time limit on how long a creditor can sue you for a debt. If the debt is older than the statute of limitations in your state, you have a valid legal defense — even if you technically owe the money.
How to Respond to a Debt Lawsuit
File a Written Answer
Go to your local courthouse (or their website) and file a formal written response to the lawsuit within the deadline. You don’t need a lawyer to do this, though one helps. In your answer, admit what’s accurate, deny what isn’t, and assert any affirmative defenses you have (like the statute of limitations, or that the debt isn’t yours).
Consider Negotiating a Settlement
Creditors and debt collectors often prefer settlement over a drawn-out court battle. Once you’ve responded and shown you’re not going away easily, you may be surprised how willing they are to settle for 40-60 cents on the dollar — sometimes even less. Get any settlement agreement in writing before paying a single cent.
Can They Garnish My Wages?
Yes — but only after they have a court judgment against you. They can’t garnish your wages just because you owe money; they need to win in court first. Federal law limits wage garnishment to 25% of your disposable income or the amount by which your income exceeds 30 times the federal minimum wage, whichever is less. Some states have even stricter limits.
Certain income is generally exempt from garnishment: Social Security benefits, disability payments, veterans’ benefits, and child support payments you receive.
Know Your Rights Under the FDCPA
If you’re dealing with a third-party debt collector (not the original creditor), the Fair Debt Collection Practices Act protects you from harassment. Collectors cannot:
- Call before 8 AM or after 9 PM
- Call your workplace if you tell them to stop
- Threaten violence or use obscene language
- Make false statements about the debt
- Threaten legal action they cannot or do not intend to take
Violations of the FDCPA can be sued over — and you can recover damages plus attorney’s fees.
A debt lawsuit is stressful, but it’s a legal process with rules — and those rules protect you if you use them. Respond to the summons, verify the debt, know your rights, and don’t be afraid to negotiate. The creditor is counting on you to panic or disappear. Proving you won’t is often enough to change the entire dynamic.