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:

1. The original contract.
2. The balance owed.
3. Proper chain of assignment.
4. 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.