If you’ve been sued by a debt buyer like Midland Funding, Portfolio Recovery Associates, LVNV Funding, Cavalry SPV, or Jefferson Capital, one of the most important legal questions is:
Can they prove they actually own your debt?
Debt buyers are not the original credit card company. They purchase charged-off accounts in bulk — often for pennies on the dollar.
In court, that means they must prove they legally own your specific account.
If they can’t, the case may fall apart.
Here’s what happens when a debt buyer cannot prove ownership — and why it matters.
Why Ownership (Standing) Is Required
In any lawsuit, the plaintiff must have standing — the legal right to sue.
In a debt buyer case, standing requires proof that:
- The original creditor sold the account
- The debt was transferred legally
- The plaintiff purchased your specific account
- The chain of title is complete
If the debt buyer cannot prove these elements, they may lack standing.
Without standing, they may not be entitled to a judgment.
What Does “Failing to Prove Ownership” Usually Look Like?
Ownership problems often show up as:
- Generic bills of sale that do not list your account
- Missing account schedules
- Incomplete chain of title
- Affidavits without personal knowledge
- Records created by other companies
- Conflicting transfer documents
Sometimes the plaintiff produces some paperwork — but not enough to connect your specific account to them.
That gap can be critical.
What Can Happen If They Can’t Prove Ownership?
If a debt buyer cannot prove ownership, several outcomes are possible.
1️⃣ The Case May Be Dismissed
If the court determines that the plaintiff failed to prove standing, the case may be dismissed.
This can happen:
- After a motion to dismiss
- At summary judgment
- At trial
Dismissal may be with or without prejudice (depending on circumstances and jurisdiction).
2️⃣ The Debt Buyer May Voluntarily Dismiss the Case
Sometimes, once weaknesses are exposed — especially during discovery — the debt buyer may dismiss the case rather than risk losing in court.
This often happens when:
- Chain of title documents are incomplete
- The account schedule cannot be produced
- The plaintiff lacks a qualified witness
Many cases end quietly this way.
3️⃣ The Plaintiff May Offer a Reduced Settlement
If ownership proof is weak, the debt buyer’s leverage decreases.
You may see:
- Reduced lump-sum offers
- Dismissal in exchange for partial payment
- More flexible payment terms
Ownership challenges can create negotiation leverage.
4️⃣ The Case May Proceed to Trial — But With Risk to the Plaintiff
If the plaintiff proceeds to trial without proper documentation, the court may rule against them.
Debt buyers must prove:
- They own the debt
- The debt belongs to you
- The balance is correct
If ownership fails, the claim may fail.
What If You Ignore the Lawsuit?
This is critical:
Even if the debt buyer has weak ownership proof, they can still win if you do nothing.
If you fail to:
- File an Answer
- Appear in court
- Respond to motions
The court may enter a default judgment — even if the plaintiff’s documentation is incomplete.
Ownership weaknesses only matter if you defend the case.
How Consumers Challenge Ownership
Ownership is typically challenged through:
✔ Denying ownership allegations in the Answer
✔ Requesting chain-of-title documents in discovery
✔ Demanding account schedules listing your account
✔ Challenging hearsay affidavits
✔ Requiring proper authentication of records
✔ Objecting at trial if foundation is lacking
Debt buyers have the burden of proof — not you.
Common Ownership Gaps in Debt Buyer Lawsuits
Some of the most frequent problems include:
Missing Account Schedules
The bill of sale references a data file, but the file is never produced.
Multiple Transfers
The debt passed through several companies, but one transfer is undocumented.
Affidavit-Only Cases
The plaintiff relies solely on a sworn statement instead of underlying documents.
Inconsistent Account Numbers
The account number in the complaint does not match statements.
No Link Between Bill of Sale and Defendant
The document transfers “accounts” but does not identify yours.
These issues can create standing challenges.
What If the Court Dismisses the Case?
If the case is dismissed, several things can happen:
- The lawsuit ends (for now)
- The plaintiff may refile (depending on statute of limitations)
- The debt may still appear on credit reports
- Settlement negotiations may still occur
A dismissal does not always mean the debt disappears — but it can stop the lawsuit.
Does Ownership Matter If the Debt Is Actually Mine?
Yes.
Even if you believe the debt is yours, the plaintiff must still prove:
- They own it
- The amount is accurate
- The case is timely
Ownership is a legal requirement, not a moral question.
Frequently Asked Questions
Can a debt buyer win without proof of ownership?
In a defended case, they must present admissible evidence. If they cannot prove ownership, they risk losing.
What is “standing” in simple terms?
Standing means the plaintiff has the legal right to bring the lawsuit.
Is a generic bill of sale enough?
Not always. The plaintiff typically must connect that bill of sale to your specific account.
What if they produce documents late?
Procedural rules vary. Courts may allow it, exclude it, or continue the case depending on circumstances.
The Bottom Line
If a debt buyer cannot prove ownership of your specific account, their case may be vulnerable.
Possible outcomes include:
- Dismissal
- Reduced settlement
- Inability to win at trial
But none of those protections apply if you ignore the lawsuit.
Ownership challenges are most effective when raised early and supported with proper procedural steps.
Need Help Defending 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 options to:
- Challenge chain of title
- Use discovery to demand proof
- Raise statute of limitations defenses
- Prevent default judgment
- Negotiate from a position of strength
The sooner you act, the more leverage you may have.
