If you’ve been sued for a debt—especially by a company you don’t recognize—you may hear people say:

• “They don’t have standing.”
• “Challenge standing.”
• “Make them prove ownership.”

But what does that actually mean?

In a debt collection lawsuit, standing is one of the most important legal issues in the entire case.

If the plaintiff cannot prove standing, they may not have the legal right to sue you.

This article explains what standing means, why it matters, and how consumers can challenge it.

What Does “Standing” Mean?

Standing means the plaintiff has the legal right to bring the lawsuit.

In plain English:

Standing means the person or company suing you must prove they are the correct party to sue you.

They can’t just claim you owe money. They must show they are legally entitled to collect it.

Why Standing Matters in Debt Collection Lawsuits

Standing is important because many lawsuits are filed by:

• Debt buyers
• Collection agencies
• Companies that purchased accounts in bulk
• Third-party collectors acting for someone else

These companies are not always the original creditor.

If they cannot prove they own the debt—or have legal authority to sue—you may have a defense.

Standing vs. “Do You Owe the Debt?”

Many consumers assume:

“If I owe the debt, they automatically win.”

That is not always true.

Even if the debt is real, the plaintiff still has to prove:

• they own the debt (or are authorized to collect it)
• the amount is correct
• the case was filed within the statute of limitations
• their evidence is admissible

Standing is about whether the plaintiff has the right to sue—not whether the debt existed at some point in time.

Who Usually Has Standing?

In general, these parties may have standing:

✔ The Original Creditor

Example: Capital One, Discover, Chase.

✔ A Debt Buyer That Can Prove Ownership

Example: Midland Funding, Portfolio Recovery, LVNV Funding.

✔ A Collector Suing on Behalf of the Creditor (With Proof)

Some collectors sue as agents, but they must prove authority.

Who Often Has Standing Problems?

Standing issues are common when the lawsuit is filed by a debt buyer such as:

• Midland Funding
• Portfolio Recovery Associates
• LVNV Funding
• Cavalry SPV
• Jefferson Capital Systems
• Asset Acceptance
• Unifin
• Credit Corp Solutions

These companies may have purchased the debt from another creditor or buyer and may not have complete documentation.

What Does the Plaintiff Have to Prove to Show Standing?

To prove standing, the plaintiff must usually show:

1️⃣ A Valid Chain of Title

They must prove the debt was legally transferred from:

Original Creditor → Buyer(s) → Plaintiff

This is called chain of title.

If the debt changed hands multiple times, the plaintiff must prove each transfer.

2️⃣ That Your Specific Account Was Included in the Sale

A generic bill of sale is often not enough.

They may need a schedule or data sheet showing your account number was part of the purchase.

3️⃣ Proper Documentation Supporting Ownership

This may include:

• Bill of Sale
• Assignment Agreement
• Purchase and Sale Agreement
• Account schedule / spreadsheet reference
• Affidavit from custodian of records

If the documents don’t clearly identify your account, standing may be challenged.

Common Signs the Plaintiff May Not Have Standing

Here are red flags that often suggest standing problems:

🚩 You don’t recognize the plaintiff’s name

If you’ve never heard of the company suing you, it may be a debt buyer.

🚩 The complaint provides little documentation

Some lawsuits are filed with no statements, no bill of sale, and no proof of ownership.

🚩 The bill of sale is generic

Many bills of sale reference “accounts” but do not identify yours.

🚩 Missing assignment documents

If the debt was transferred multiple times, missing one link may break the chain.

🚩 They rely only on an affidavit

Debt buyers often try to prove standing through affidavits signed by employees who lack personal knowledge.

How to Challenge Standing in a Debt Collection Lawsuit

Standing must usually be challenged early in the case.

Here are common steps consumers take.

Step 1: File an Answer and Deny the Standing Allegations

When the complaint says:

“Plaintiff is the owner of the account”

Many consumers mistakenly admit this.

If you don’t have proof, you can deny or state lack of knowledge.

This preserves your standing defense.

Step 2: Request Proof Through Discovery

Discovery allows you to demand documents such as:

• chain of title documents
• purchase agreements
• assignment paperwork
• account schedules identifying your debt
• statements proving balance

If the plaintiff cannot produce these documents, standing may fail.

Step 3: Challenge Affidavits and Hearsay Evidence

Debt buyers often submit affidavits from employees claiming the debt was purchased.

But courts may require:

• personal knowledge
• proper authentication
• admissible business records

If the witness cannot authenticate the original creditor’s records, the evidence may be challenged.

Step 4: Raise Standing in Motions or at Trial

Standing issues may be raised:

• in a motion to dismiss
• in a motion for summary judgment
• through objections at trial

If standing is not proven, the plaintiff may not win judgment.

What Happens If the Plaintiff Lacks Standing?

If the plaintiff cannot prove standing, the court may:

• dismiss the lawsuit
• deny the plaintiff’s motion for judgment
• require additional proof
• exclude documents from evidence
• force the plaintiff to settle or drop the case

In many debt buyer cases, lack of standing is a key reason cases are dismissed.

Can a Debt Buyer Still Win Even If Their Documents Are Weak?

Yes—if you don’t respond.

Even if standing is questionable, the plaintiff can win by default if:

• you don’t file an Answer
• you miss court dates
• you fail to respond to motions

That’s why filing an Answer is so important.

Frequently Asked Questions

What if I actually owe the debt?

Standing still matters. The plaintiff must prove they own the debt and can sue you.

Does the plaintiff have to show the original contract?

Not always, but they must prove ownership and balance with admissible evidence.

Is standing a defense in every case?

Standing is especially important in debt buyer cases. It may be less of an issue when the original creditor is suing.

Can a case be dismissed because of standing?

Yes. If standing is not proven, dismissal is possible.

The Bottom Line

Standing is one of the most important legal issues in a debt collection lawsuit.

It means the plaintiff must prove they have the legal right to sue you.

In many debt buyer cases, standing depends on:

• a complete chain of title
• proof your specific account was transferred
• admissible evidence

If the plaintiff cannot prove standing, the case may be vulnerable to dismissal or settlement.

Need Help Defending a Debt Collection Lawsuit?

If you’ve been sued by Midland Funding, Portfolio Recovery, LVNV, Cavalry, Jefferson Capital, or another debt buyer, an attorney may be able to help you:

• challenge standing
• demand chain-of-title proof
• assert statute of limitations defenses
• prevent default judgment
• negotiate a favorable resolution

Deadlines are strict—don’t wait until it’s too late.