How to Handle a Debt Collection Lawsuit

1. Understand Who Is Suing You

Most debt collection lawsuits are filed by debt buyers, not the original creditor. Companies purchase old debts—often for pennies on the dollar—and then file lawsuits to collect.

Because they aren’t the original creditor, they must prove:

• They actually own the debt,

• The amount is accurate, and

• They have proper documentation to support their claim.

Many cases get dismissed because collectors can’t provide the necessary evidence.

2. Don’t Ignore the Lawsuit

Once you’re served, you typically have 30 days (in most Illinois municipal cases) to file an Appearance and Answer with the court.If you ignore the case, the creditor can get a default judgment, which allows them to:

• Garnish your wages,

• Freeze your bank account, or

• Place liens on your property.

Even if you believe you owe something, it’s still important to appear in court and make sure the collector can prove their claim.

3. You May Have Legal Defenses

A debt collection lawyer can review your case for defenses such as:

• The statute of limitations has expired (usually 5–10 years depending on the type of debt),

• The collector can’t prove ownership or amount of the debt,

• You were never properly served, or

• The collector violated the Fair Debt Collection Practices Act (FDCPA) through harassment or misrepresentation.

Many cases can be dismissed or settled for a fraction of the claimed amount once an attorney gets involved.

4. Settlement and Negotiation Options

Even if the debt is valid, an attorney can often negotiate:

• Reduced lump-sum settlements,

• Payment plans, or

• Dismissals in exchange for partial payment.

Because debt buyers pay so little for accounts, they’re often open to reasonable settlements once they see you have legal representation.

5. Get Help Through the Cook County Early Resolution Program

If your case is in Cook County Municipal Court, you may qualify for the Early Resolution Program (ERP)—a court-connected initiative offering free mediation and legal aid for debt cases.

However, ERP lawyers do not always provide full representation in court. Hiring your own attorney ensures that someone is actively protecting your rights from start to finish.

6. Protect Your Future Credit

Fighting or resolving your case properly helps prevent:

• Wage garnishments and judgments on your credit report,

• Extra court fees and interest, and

• Long-term credit damage.

Taking action now can save you thousands later.

Talk to an Attorney Before You Decide

If you’ve been served with a debt lawsuit or received a court summons from a collection agency, don’t panic—and don’t go it alone. A quick consultation can help you understand your options and next steps.