If you’ve just been served with a lawsuit from a company like Midland Credit Management, Portfolio Recovery Associates, Cavalry SPV, or LVNV Funding, you’re not alone.
These companies file thousands of debt collection lawsuits every year—often based on old, incomplete, or inaccurate information.
But here’s what most people don’t realize:
Just because you’re being sued doesn’t mean they can win.
And in some cases, you may actually have a claim against them.
This guide will walk you through:
- What these companies are
- Why they sue
- How to defend yourself
- When you may have a counterclaim worth real money
🧠 Who Are These Companies (And Why Are They Suing You)?
The names may sound unfamiliar, but they’re some of the largest debt buyers in the country:
- Midland Credit Management (MCM)
- Portfolio Recovery Associates (PRA)
- Cavalry SPV I, LLC
- LVNV Funding LLC
These are not original creditors like Chase or Capital One.
👉 They are debt buyers
💡 What that means:
- They purchase old debts for pennies on the dollar
- Often lack full documentation
- Then attempt to collect—or sue—to recover the full amount
⚠️ Why lawsuits are so common
Because of volume.
These companies rely on:
- People ignoring lawsuits
- Courts entering default judgments
- Minimal resistance
In many cases, they’re not expecting you to fight back.
🚨 Step 1: Don’t Ignore the Lawsuit
This is the most important rule.
If you do nothing:
- The court will likely enter a default judgment
- They may:
- Garnish wages
- Freeze bank accounts
- Place liens
⏳ You have a deadline
Depending on your state:
- Usually 14–30 days to respond
👉 Missing this window is where most people lose.
🛡️ Step 2: Force Them to Prove Their Case
Here’s where things get interesting.
To win, a debt buyer must prove:
- You owe the debt
- They own the debt
- The amount is correct
- They have the right to sue
⚠️ The problem for them:
They often can’t prove all of this.
🔍 Common weaknesses in these cases
1. Missing documentation
- No original contract
- No account statements
- Incomplete records
2. Broken chain of title
They must prove:
👉 The debt was legally transferred from the original creditor → to them
This is often:
- incomplete
- inaccurate
- missing entirely
3. Incorrect amounts
- Fees added improperly
- Interest miscalculated
- Duplicate accounts
4. Wrong person / identity issues
- Mixed files
- Identity theft
- Similar names
👉 If any of these exist:
Their case may fall apart.
⚖️ Step 3: File an Answer (Your First Defense Move)
Your first step in fighting back is filing an Answer to the complaint.
This:
- Prevents default judgment
- Forces the case to move forward
- Requires them to prove their claims
🧾 What an Answer does
- Denies allegations you don’t admit
- Raises defenses
- Preserves your rights
👉 Without an Answer:
You lose automatically.
💥 Step 4: You May Have a Counterclaim (This Is What Most People Miss)
This is where things shift from defense → opportunity.
If the debt collector violated the law, you may have a counterclaim against them.
📜 Common violations (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) protects consumers.
Debt buyers can violate it by:
- Suing without proper documentation
- Misrepresenting the debt
- Attempting to collect amounts not owed
- Filing lawsuits on time-barred debts
- Using false or misleading statements
💰 What a counterclaim can mean
Under federal law:
👉 You may recover:
- Up to $1,000 in statutory damages
- Attorney’s fees
- Possibly more depending on the case
👉 In some situations:
Your claim can offset or exceed what they’re suing for
🔎 Real-World Example
Let’s say:
- Midland sues you for $5,000
- But they:
- Can’t prove ownership
- Filed with incomplete records
👉 You:
- Defend the lawsuit
- File a counterclaim
Outcome:
- Case dismissed or settled
- You may receive compensation
⚠️ Step 5: Watch for “Zombie Debt” (Statute of Limitations)
Some debts are simply too old to sue on.
Each state has a statute of limitations.
🚫 If the debt is too old:
- They may not legally sue you
- Filing anyway can be a violation
👉 This is a major opportunity for a counterclaim.
📊 Why These Companies Still File Weak Cases
Because it works.
Most people:
- Don’t respond
- Don’t understand their rights
- Assume the debt is valid
👉 The system depends on:
low resistance
🧠 Step 6: Understand Their Strategy
Debt buyers operate on volume:
- File thousands of cases
- Expect many defaults
- Settle others quickly
👉 When you fight back:
- You increase their cost
- You reduce their leverage
🔥 What Happens When You Push Back
When properly defended:
- Cases are often:
- Dismissed
- Settled for less
- Withdrawn
👉 Especially when documentation is weak
📞 When Should You Talk to a Lawyer?
Immediately if:
- You’ve been served
- You don’t recognize the debt
- The amount seems wrong
- You’ve been harassed
- The debt is old
👉 Timing matters.
The earlier you act:
- The more options you have
- The stronger your defense
💡 Key Takeaways
- Being sued does NOT mean you’ll lose
- Debt buyers often rely on weak documentation
- You have the right to force proof
- You may have a counterclaim worth money
- Acting quickly is critical
🚀 Take the Next Step
If you’re being sued by:
- Midland Credit
- Portfolio Recovery
- Cavalry
- LVNV Funding
👉 You may have defenses—and possibly a claim against them.
👉 Start with a free case review
We’ll help you determine:
- Whether the lawsuit is valid
- What defenses you have
- Whether you may be entitled to compensation
👉 Don’t ignore it. Don’t assume they’re right.
You may have more power in this situation than you think.
CLICK HERE FOR YOUR FREE CASE REVIEW.
READ MORE ABOUT DEFENDING AGAINST A DEBT COLLECTION LAWSUIT.
