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 strongest defenses you may have is challenging the plaintiff’s:
Chain of title
Chain of title is the paper trail that proves the debt buyer legally owns your specific account.
And here’s the key:
If the debt buyer cannot prove ownership, they may not have the legal right to sue you.
This article explains what chain of title is, why it matters, and how consumers can challenge it in court.
What Is “Chain of Title” in a Debt Buyer Lawsuit?
Chain of title refers to the documentation showing how a debt was transferred from the original creditor to the current plaintiff.
For example:
Capital One → Sold to Midland Funding → Midland files lawsuit
But sometimes the chain looks like this:
Synchrony Bank → Sold to Buyer A → Sold to Buyer B → Sold to LVNV → Lawsuit
In court, the plaintiff must prove that every transfer was valid and that your specific account was included.
Why Chain of Title Matters
Debt buyers do not issue the original credit card.
They buy accounts in bulk, often for pennies on the dollar.
To sue you, they must prove standing, meaning they have the legal right to bring the lawsuit.
If the chain of title is incomplete or unclear, the plaintiff may lack standing.
Without standing, the case may be dismissed.
What Documents Debt Buyers Use to Prove Chain of Title
Debt buyers often try to prove ownership using:
- Bill of Sale
- Assignment Agreement
- Purchase and Sale Agreement
- Affidavit of Sale
- Account Schedule / Data Sheet
- Declaration from Records Custodian
- Electronic data printouts
- Statements from the original creditor
However, many cases involve incomplete or generic documents that do not clearly connect the defendant to the alleged debt.
Common Chain of Title Problems in Debt Buyer Lawsuits
Chain of title issues are one of the most common weaknesses in debt buyer litigation.
Here are the most frequent problems.
1️⃣ The Bill of Sale Doesn’t Identify Your Account
Debt buyers often attach a Bill of Sale that says something like:
“Seller transfers a portfolio of charged-off accounts…”
But the document may not include:
- your name
- your account number
- your balance
- your Social Security number
If the Bill of Sale does not identify your account, the plaintiff may not be able to prove you were part of the sale.
2️⃣ The Account Schedule Is Missing
Bills of sale often reference an “account schedule” or “data file” listing the accounts that were sold.
But debt buyers frequently do not provide the schedule in court.
Without it, the Bill of Sale may be meaningless because there is no proof your specific account was included.
3️⃣ The Chain Has Missing Links
Sometimes the debt passed through multiple companies.
Example:
Bank → Buyer A → Buyer B → Plaintiff
If the plaintiff only provides proof of one transfer, they may not be able to prove full ownership.
A missing transfer can break the chain.
4️⃣ The Plaintiff Relies on Hearsay Affidavits
Debt buyers often use affidavits signed by employees who claim:
- the plaintiff owns the debt
- the balance is correct
- records show defendant owes the debt
But these affidavits are often vulnerable because:
- the employee didn’t work for the original creditor
- the employee lacks personal knowledge
- the affidavit relies on records created by someone else
In many cases, these affidavits may be challenged as hearsay or insufficient foundation.
5️⃣ The Balance and Documents Don’t Match
Sometimes the alleged balance in the complaint does not match:
- statements
- charge-off documents
- account summaries
Inconsistencies can weaken the plaintiff’s credibility and create defenses.
How to Challenge Chain of Title Step-by-Step
Challenging chain of title usually requires forcing the debt buyer to prove ownership through admissible evidence.
Here’s how consumers commonly challenge it.
Step 1: File an Answer and Deny Ownership Allegations
The first step is filing an Answer before your deadline.
When the complaint alleges:
“Plaintiff is the owner of the account”
many consumers mistakenly admit it.
Instead, if you do not have proof, you may deny or state lack of knowledge.
This preserves your right to challenge standing later.
Step 2: Use Discovery to Demand Chain of Title Documents
Discovery is often the most effective tool.
You can request:
- full purchase and sale agreement
- bills of sale
- assignments
- account schedules
- data files showing your account was transferred
- all documents plaintiff intends to use at trial
Many debt buyers struggle to produce complete documentation when forced to do so.
Step 3: Demand Proof of Every Transfer
If the debt changed hands multiple times, the plaintiff must prove each transfer.
For example, if the debt was transferred:
Creditor → Buyer A → Buyer B → Plaintiff
they must provide proof of:
- Creditor to Buyer A
- Buyer A to Buyer B
- Buyer B to Plaintiff
If even one link is missing, chain of title may be broken.
Step 4: Challenge Generic Bills of Sale
A generic Bill of Sale that does not identify your account may not be enough.
Common issues include:
- no account numbers listed
- no account schedule attached
- no balance listed
- no reference to defendant
- unclear description of what was sold
If the plaintiff cannot connect the Bill of Sale to your account, ownership may not be proven.
Step 5: Challenge Affidavits as Insufficient
Debt buyers often try to win using affidavits instead of live testimony.
But you may be able to challenge affidavits if:
- the witness lacks personal knowledge
- the affidavit is boilerplate
- the affidavit references documents not attached
- the witness cannot authenticate creditor records
Debt buyers must meet evidence rules, especially at trial.
Step 6: Force the Plaintiff to Authenticate Their Evidence
Debt buyers often rely on “business records” exceptions.
But to admit records, they typically must show:
- the records were kept in the ordinary course of business
- the witness is qualified to testify
- the records are reliable
- the records were created at or near the time of the events
A debt buyer employee may not always be qualified to authenticate original creditor records.
Step 7: Raise Standing Issues in Motions or Trial
If the plaintiff cannot prove chain of title, this may be raised:
- in a motion to dismiss
- in a motion for summary judgment
- at trial through objections and cross-examination
The key point is that the plaintiff has the burden of proof.
You are not required to prove they don’t own it — they must prove they do.
What Happens If the Chain of Title Is Broken?
If the debt buyer cannot prove ownership, the court may:
- dismiss the lawsuit
- deny summary judgment
- exclude evidence at trial
- require additional proof
- encourage settlement
In many cases, chain of title problems result in dismissal or favorable settlement terms.
Does Chain of Title Matter If the Debt Is Mine?
Yes.
Even if you believe you once owed the debt, the plaintiff must still prove:
- they own it
- the amount is accurate
- the case is timely
- they have admissible evidence
Ownership is a legal requirement, not a moral argument.
Frequently Asked Questions
Can a debt buyer sue without chain of title?
They can file a lawsuit, but if you defend the case, they must prove ownership with admissible evidence.
Is a bill of sale enough to prove ownership?
Not always. Many bills of sale are generic and do not identify the defendant’s account.
What is the most important chain of title document?
Often, it’s the account schedule or data file showing your account was included in the sale.
What if they produce documents later?
Court rules vary. Some courts allow it, others may exclude late evidence or grant continuances.
The Bottom Line
Challenging chain of title is one of the strongest defenses in a debt buyer lawsuit.
Debt buyers must prove they legally own your specific account. If they cannot provide a complete chain of title, they may lack standing.
Key ways consumers challenge chain of title include:
- filing an Answer and denying ownership
- using discovery to demand documents
- challenging generic bills of sale
- objecting to hearsay affidavits
- forcing proof of every transfer
If you’ve been sued by Midland, Portfolio, LVNV, Cavalry, Jefferson, or another debt buyer, chain of title issues may create leverage for dismissal or settlement.
Need Help Defending a Debt Buyer Lawsuit?
If you’ve been sued by a debt buyer, an attorney may be able to help you:
- challenge chain of title
- demand discovery
- assert statute of limitations defenses
- prevent default judgment
- negotiate favorable settlement terms
Deadlines move fast — the sooner you act, the more options you may have.
