How to Defend a Credit Card Lawsuit the Right Way
If you are being sued by a debt buyer, you need a structured strategy — not panic.
Here is the full roadmap.
Step 1: Do Not Ignore the Lawsuit
Ignoring leads to:
- Default judgment
- Wage garnishment
- Bank levies
- Property liens
File an Answer on time.
Step 2: Deny and Demand Proof
In your Answer:
- Deny allegations you lack knowledge of.
- Demand strict proof.
- Raise affirmative defenses.
Key defenses may include:
- Lack of standing
- Statute of limitations
- Failure to state a claim
- Payment
- Identity theft
Step 3: Evaluate Documentation
Debt buyers must prove:
- The original contract.
- The balance owed.
- Proper chain of assignment.
- Their standing to sue.
Look for:
- Missing signed agreement
- Generic bill of sale
- Incomplete assignment records
- Affidavits without foundation
Weak documentation is common.
Step 4: Consider Strategic Leverage
Options may include:
- Requesting a jury trial.
- Compelling arbitration.
- Filing discovery requests.
- Challenging standing early.
Each shifts cost and pressure.
Step 5: Use Discovery
Ask for:
- Account-level bill of sale
- Complete chain of title
- Account statements
- Charge-off records
- Affiant qualifications
Force proof.
Step 6: Evaluate Settlement
Settlement may be appropriate if:
- Documentation is strong.
- Financial exposure is high.
- You want closure.
Never settle without written terms.
Step 7: Understand Judgment Risk
If the debt buyer wins:
- Wages may be garnished.
- Bank accounts may be levied.
- Judgments may last 10–20 years.
Post-judgment leverage changes.
Strategic Mindset
Debt buyers rely on:
- Consumers not responding.
- Fear-driven settlements.
- Procedural shortcuts.
When you:
- File an Answer.
- Demand documentation.
- Consider arbitration.
- Consider jury trial.
- Use discovery.
You disrupt the volume model.
Final Takeaway
Debt buyer lawsuits are legal cases — not automatic losses.
The winning approach is structured, strategic, and procedural.
Leverage comes from:
- Timely response
- Documentation demands
- Procedural tools
- Cost-shifting tactics
Used correctly, these tools can change the trajectory of the case.
