Getting served with a lawsuit from a debt buyer like Midland Funding, Portfolio Recovery Associates, LVNV Funding, Cavalry SPV, or Jefferson Capital can be overwhelming.
Most people’s first reaction is panic:
- “Am I going to lose?”
- “Will they garnish my wages?”
- “What happens if I can’t pay?”
- “Do I have to go to court?”
The truth is, being sued does not mean the debt buyer automatically wins.
But what you do next is critical.
Below is a step-by-step checklist of what you should do immediately after you’re served with a debt buyer lawsuit.
Step 1: Don’t Ignore the Lawsuit
This is the biggest mistake consumers make.
If you ignore the lawsuit, the debt buyer can usually request a default judgment.
A judgment may allow the creditor to pursue:
- wage garnishment (depending on your state)
- bank account levy
- liens
- post-judgment interest and court costs
Even if the debt buyer has weak documentation, they can still win if you don’t respond.
Step 2: Find Your Deadline to Respond
Look at the Summons (not just the Complaint).
Most courts give you between:
- 20 days
- 21 days
- or 30 days
to respond.
⚠️ Your deadline often begins on the date you were served, not the date printed on the lawsuit.
Mark the deadline on your calendar immediately.
Step 3: Identify Who Is Suing You
Many consumers assume they are being sued by the original creditor.
But often, the lawsuit is filed by a debt buyer.
Common debt buyers include:
- Midland Funding
- Portfolio Recovery Associates
- LVNV Funding
- Cavalry SPV
- Jefferson Capital Systems
If the plaintiff name is unfamiliar, that is often a sign the debt has been sold.
Step 4: Check the Alleged Amount and Account Information
Review the Complaint carefully and look for:
- the balance claimed
- the account number (often partial)
- the original creditor name
- interest charges
- fees
- last payment date (if listed)
Debt buyer lawsuits sometimes contain errors.
Step 5: Do NOT Call and Admit the Debt
Many people panic and call the debt buyer or their attorney.
Be careful.
Admissions like:
- “Yes, I remember that card.”
- “I know I owe something.”
- “I can’t pay right now.”
can be used against you later.
If you do speak with them, keep communication limited and avoid admitting liability.
Step 6: Determine Whether the Debt May Be Too Old (Statute of Limitations)
One of the strongest defenses in debt buyer cases is the statute of limitations.
Ask yourself:
- When was the last payment?
- When did you stop using the account?
- How old is this debt?
If the debt is beyond your state’s statute of limitations, the lawsuit may be time-barred.
Debt buyers sometimes sue on old accounts and rely on consumers not raising this defense.
Step 7: File an Answer Before the Deadline
An Answer is your written response to the Complaint.
This is what prevents a default judgment.
In your Answer, you typically:
- admit, deny, or state lack of knowledge for each paragraph
- list affirmative defenses
Even if you are unsure, filing an Answer is usually far better than doing nothing.
Step 8: Preserve Key Defenses
Some common defenses in debt buyer lawsuits include:
- lack of standing (they can’t prove ownership)
- statute of limitations
- incorrect balance
- identity theft / mistaken identity
- improper service
- failure to state a claim
- lack of documentation
Debt buyers must prove their case. They do not win automatically.
Step 9: Gather Your Records
Start collecting documents that may matter, including:
- old billing statements
- bank records showing last payment
- settlement letters
- collection notices
- credit report entries
- bankruptcy discharge paperwork (if applicable)
- correspondence from the original creditor
Even partial records may help.
Step 10: Check Your Credit Report
Pull your credit report and confirm:
- whether the debt appears
- whether the plaintiff is reporting
- the reported “date of first delinquency”
- the balance being reported
If the debt buyer is reporting incorrect information, there may be additional legal issues.
Step 11: Consider Discovery (If Allowed)
If your case proceeds, discovery may allow you to request documents such as:
- the bill of sale
- chain of title / assignments
- account schedules identifying your account
- full statement history
- proof of balance calculation
Many debt buyers have incomplete records.
Discovery can expose weaknesses and create settlement leverage.
Step 12: Show Up to Every Court Date
If you miss a hearing, the debt buyer may ask for judgment.
Even if you filed an Answer, failure to appear can seriously harm your case.
If the court offers virtual appearances, log in early and be prepared.
Step 13: Be Cautious About Settlement Offers
Debt buyers may offer:
- payment plans
- lump-sum settlements
- consent judgments
A settlement can be a good option, but it can also be risky if you sign something you don’t understand.
Some agreements allow immediate judgment if you miss a payment.
Before settling, you should understand:
- whether the case will be dismissed
- whether the debt will be reported as paid
- whether interest will continue
- whether the plaintiff will file judgment anyway
Step 14: Don’t Assume the Debt Buyer Has Proof
Many debt buyers file lawsuits with minimal documentation.
They may not have:
- the original contract
- full statement history
- proof of ownership
- admissible evidence
But they will still win if you don’t challenge the case.
Filing an Answer forces them to prove their claim.
Step 15: Consider Talking to a Consumer Attorney
Debt buyer lawsuits can involve:
- court deadlines
- evidence rules
- motions and discovery
- statute of limitations defenses
- counterclaims under consumer protection laws
A consumer attorney may be able to help you fight the lawsuit, negotiate better terms, or identify violations that give you leverage.
Quick Debt Buyer Lawsuit Checklist (Printable Summary)
Here’s the short version:
✅ Don’t ignore the lawsuit
✅ Find your response deadline
✅ Identify the plaintiff (debt buyer vs original creditor)
✅ Review balance and account details
✅ Avoid calling and admitting the debt
✅ Check statute of limitations
✅ File an Answer
✅ Preserve defenses (standing, SOL, etc.)
✅ Gather records and payment history
✅ Pull your credit report
✅ Use discovery to demand proof
✅ Attend all court dates
✅ Review settlement offers carefully
✅ Consider legal help
The Bottom Line
Being served with a debt buyer lawsuit is serious — but it is not the end of the road.
Debt buyers often rely on consumers being overwhelmed and doing nothing.
If you respond on time and challenge the case properly, you may have options to:
- fight the lawsuit
- force proof of ownership
- negotiate a favorable settlement
- avoid default judgment
The most important thing is acting quickly.
Need Help With a Debt Buyer Lawsuit?
If you’ve been sued by Midland Funding, Portfolio Recovery, LVNV Funding, Cavalry SPV, Jefferson Capital, or another debt buyer, you may have defenses.
An attorney may be able to help you:
- file an Answer
- challenge standing
- demand proof through discovery
- raise statute of limitations defenses
- prevent wage garnishment and judgment
Deadlines matter — the sooner you act, the more leverage you may have.
