Getting served with a debt lawsuit feels scary, but ignoring it is the worst thing you can do. If you don't respond, the creditor automatically gets a default judgment, which gives them the power to garnish your wages, freeze your bank accounts, and place liens on your property. Responding gives you options.
Step 1: Read the summons carefully. It will tell you: who is suing you (the plaintiff), what court the case is in, how much they claim you owe, and your deadline to respond (usually 20 to 30 days, depending on your state). The deadline is firm. Mark it on your calendar.
Step 2: Don't panic, but don't delay. You have time, but not unlimited time. Start working on your response as soon as possible. If you can't afford an attorney, look into legal aid in your area. Many legal aid organizations handle debt defense cases for free if your income qualifies (usually below 125% to 200% of the federal poverty level).
Step 3: File an Answer. Your Answer is your formal written response to the lawsuit. In it, you respond to each claim in the complaint (admit, deny, or state that you lack knowledge). You also raise any defenses you have. Common defenses include: the statute of limitations has expired, the debt isn't yours, the amount is wrong, or the plaintiff can't prove they own the debt (common with debt buyers).
Most courts have self-help forms for filing an Answer. Check your court's website or visit the clerk's office. The filing fee is typically $50 to $200, though fee waivers are available if you can't afford it.
Step 4: Show up for court. If there's a hearing, attend it. Many debt cases are resolved at the first hearing through negotiation. The creditor's attorney may offer a settlement or payment plan right there in the courtroom. Judges often facilitate this. Even if you owe the money, showing up demonstrates good faith and can lead to better terms.
Step 5: Negotiate. Just because you're being sued doesn't mean you can't settle. Many debt lawsuits settle for 40% to 60% of the amount claimed, especially if the creditor is a debt buyer. You can negotiate directly with the plaintiff's attorney before, during, or after the hearing.
What you should never do: Don't ignore the summons. Don't call the creditor and verbally agree to pay without getting terms in writing. Don't let anyone convince you that you "don't need to respond." Even if the debt is valid, responding protects your rights and almost always leads to a better outcome than a default judgment.