How to Respond to a Debt Collector Lawsuit: A Step-by-Step Guide

Receiving a lawsuit from a debt collector can send your heart racing. It’s an official-looking document that demands your attention, and it’s natural to feel overwhelmed or unsure what to do next. But here’s the most important thing to know right now: you have options, and ignoring it is the one thing you shouldn’t do. This guide is here to walk you through exactly how to respond to a debt collector lawsuit. We'll break down the confusing legal jargon, explain your rights, and outline the steps you can take to protect yourself. It’s about taking control of the situation, one step at a time, and ensuring you understand the process.

Key Takeaways

• Respond Promptly and Properly: Never ignore a debt lawsuit. Filing a formal "Answer" with the court by the deadline is your crucial first move to protect your rights and avoid an automatic loss.
• Make Them Prove Their Case: Don't just accept the lawsuit's claims. You have the right to challenge the debt's validity, the amount owed, and the collector's legal standing to sue.
• Explore All Avenues for Help: You don't have to face this alone. Look into legal aid, consult with a consumer rights attorney, and consider negotiating a settlement as a practical way to resolve the lawsuit.

What is a Debt Collector Lawsuit?

Receiving official-looking court documents can be incredibly unsettling, especially when they're about a debt. If a debt collector has decided to sue you, it means they're taking formal legal action to try and recover the money they believe you owe. This isn't just another collection letter; it's a legal proceeding that requires your attention and, most importantly, a response. Understanding what this means and why it's happening is the first step toward protecting your rights and figuring out your next move. It might feel overwhelming, but you're not alone in this, and there are ways to handle the situation effectively.

Debt Collector Lawsuits: The Basics

So, what exactly happens when a debt collector files a lawsuit? Essentially, they're asking a court to legally validate their claim against you and order you to pay. You'll typically find out about this when you receive a "summons" and a "complaint." The summons is an official notice from the court telling you that a lawsuit has been filed against you and that you need to respond by a certain deadline. The complaint outlines why the debt collector is suing you—details like who they believe the original creditor was, the amount they claim you owe, and why they believe you're responsible for it. It's absolutely crucial to respond to this lawsuit, whether you do it yourself or with an attorney's help. Ignoring it won't make it disappear; in fact, it usually leads to a "default judgment," meaning the court will likely rule in favor of the debt collector simply because you didn't contest their claim.

Why Would a Debt Collector Sue You?

Debt collectors sue for one primary reason: to get a legal judgment that can force you to pay the debt. They've likely tried other methods, like calls and letters, and a lawsuit is often their next step if those haven't worked. When you receive a summons and complaint, it’s a serious matter. However, by responding, you make the debt collector prove their case. They have to demonstrate to the court that you actually owe the debt, that the amount they're claiming is accurate, and that they legally have the right to sue you for it. If you ignore the lawsuit, the consequences can be severe, potentially leading to wage garnishment, bank account levies, or even liens on your property, not to mention significant damage to your credit report. Remember, lawsuits can sometimes contain errors, so responding is your chance to challenge any inaccuracies.

Just Got Sued? Here’s What to Do First

Okay, take a deep breath. Seeing a lawsuit with your name on it is jarring, no doubt about it. But right now, the most important thing is to face it head-on, and I'm here to walk you through those initial, crucial steps. Panicking won't help, but a clear plan will. It's completely understandable to feel overwhelmed, but remember, you have rights in this situation. Let's get started on figuring out your next moves together.

First: Is the Lawsuit Even Real?

Before you dive into the details, your very first step is to confirm that the lawsuit is legitimate. It’s certainly stressful to receive a summons for a debt, but it's also true that many lawsuits can contain errors, or in some rare instances, might not even be valid. You might not actually owe the amount being claimed, or the company suing you might not have the legal right to do so.

So, how do you check? Look for official court seals, case numbers, and the name of the court on the documents. A good step is to contact the court clerk’s office listed on the papers. They can usually verify if a case with that number has indeed been filed against you. Don't just assume everything is correct. Taking a moment to verify can save you a lot of trouble and ensures you're responding to a genuine legal action.

Break Down the Complaint and Summons

Once you've confirmed the lawsuit is real, it's time to understand exactly what it's about. You'll typically have two main documents: the Complaint (sometimes called a Petition) and the Summons. The Summons is the official notice telling you that a lawsuit has been filed and, crucially, how long you have to respond. The Complaint is where the person or company suing you (the Plaintiff) lays out their case: who they are, why they believe you owe them money (the allegations), and what they're asking the court to do (usually award them a specific sum).

It's essential to carefully review these documents to understand the specific claims. Who is the original creditor mentioned? Does the debt amount look accurate to you? Does the plaintiff clearly show they have the right to sue for this particular debt? Remember, by responding to the lawsuit, you're essentially making the debt collector prove their claims – that you owe the debt, the amount is correct, and they are legally entitled to sue you for it.

Don't Miss These Key Deadlines

This part is incredibly important: lawsuits operate on strict timelines. The Summons will clearly state how much time you have to file a formal response (often called an "Answer") with the court. The exact timeframe can vary depending on your location and the type of court. For example, in some jurisdictions, you might have as little as 14 days from the date you were "served" (officially given the lawsuit papers) to file your Answer. Keep an eye on the calendar, as if the deadline falls on a weekend or holiday, it usually extends to the next business day.

Ignoring the lawsuit or missing this deadline is one of the riskiest things you can do. If you don't respond in time, the debt collector can ask the court for something called a default judgment against you. This means they could win the case automatically, without you ever getting a chance to present your side of the story or challenge the debt. So, mark that deadline and make it a priority.

How to Respond to the Lawsuit

Okay, so you've received a lawsuit from a debt collector. Take a deep breath. This is a serious situation, but you absolutely have the right to respond and defend yourself. Ignoring it is the worst thing you can do, as it can lead to a default judgment against you, meaning the court could rule in the collector's favor without you even getting a chance to tell your side. Responding formally is your first crucial step in protecting your rights. Let's walk through exactly how to do that, making sure you cover all your bases. It might seem daunting, but breaking it down into manageable steps will help you feel more in control.

Choose the Right Form to Respond

First things first, you need to use the correct legal document to file your response, which is typically called an "Answer." Court procedures are specific, and using the wrong form can cause delays or even get your response rejected. The exact form you need will depend on the court handling your case. For example, in Texas, if your case is in a Justice Court (which handles cases up to $20,000), there are specific forms and instructions available to guide you.

Many court websites offer self-help sections where you can often find downloadable forms or templates. Look for the section pertaining to civil cases or debt collection. If you're having trouble locating the right one, don't hesitate to contact the court clerk's office for guidance. They can't give legal advice, but they can usually point you to the correct paperwork.

What to Include in Your Written Answer

Your written Answer is your official opportunity to reply to each claim made in the lawsuit. You'll go through the debt collector's complaint paragraph by paragraph. For each allegation, you can typically admit it (if it's true), deny it (if it's false), or state that you lack enough information to admit or deny it. It's incredibly important to address every single point.

Beyond just responding to their claims, your Answer is where you must list any defenses you have. Think of defenses as reasons why the debt collector shouldn't win the lawsuit. For instance, has the statute of limitations—the time limit for suing on a debt—expired? Is the debt not actually yours, or have you already paid it? These are called affirmative defenses, and you need to include them in your initial Answer if you want the judge to consider them later.

File Your Answer On Time (It's Crucial!)

This part is absolutely critical: you have a strict deadline to file your Answer with the court. Missing this deadline can lead to the debt collector automatically winning a default judgment against you, meaning you lose the chance to defend yourself. The timeframe varies by jurisdiction; for instance, in Texas Justice Courts, you generally have 14 days from the date you were served with the lawsuit, though this can be extended if the 14th day falls on a weekend or holiday.

Check the summons you received – it should clearly state your deadline. Mark this date on your calendar immediately. Even if you feel unsure or plan to seek legal help, filing an Answer yourself before the deadline protects your rights. Responding, even without an attorney at this initial stage, is far better than ignoring the summons. Make sure you also send a copy of your filed Answer to the lawyer or debt collector who sued you, following the court's rules for service.

Common Ways to Challenge a Debt Lawsuit

When you're facing a debt collection lawsuit, it might feel like the path ahead is daunting, but it's important to remember you have rights and potential defenses. Simply receiving a lawsuit doesn't automatically mean you'll lose or that the collector's claims are entirely accurate. By understanding common ways to challenge the suit, you can ensure the debt collector is held to their burden of proof. Let's explore some key defenses you might be able to use.

Has the Statute of Limitations Run Out?

One of the first things to investigate is the age of the debt. Each state has a law called the "statute of limitations," which sets a specific time limit on how long a creditor or debt collector can legally sue you for an unpaid debt. If the debt is older than this period, it's often considered "time-barred." This means you could have a strong defense. The clock typically starts from the date of your last payment or when the account first became delinquent. It's crucial to determine your state's specific statute of limitations for debt, as successfully arguing this point can lead to the case against you being dismissed. You can often find more information by researching consumer protection laws and how they apply in your area.

Does the Collector Actually Have the Right to Sue? (Standing)

Just because a company claims you owe them money doesn’t automatically grant them the legal right to sue you. This legal principle is known as "standing." The debt collector who filed the lawsuit must prove to the court that they legally own your debt or have been properly assigned the authority to collect on it. Debts are frequently bought and sold, sometimes multiple times, and during these transfers, essential paperwork can get lost or be incomplete. When you respond to the lawsuit, you have the opportunity to require the collector to prove they have this legal standing. If they can't provide clear documentation, their case against you might not be able to move forward.

Is the Amount They're Claiming Wrong?

It's more common than you might think for debt collection lawsuits to contain errors, particularly concerning the total amount owed. The figure a collector claims could be inflated with incorrect interest charges, fees that aren't legally permissible, or it might not accurately reflect payments you've already made. Take the time to carefully review every component of the amount they state you owe. If you have records of payments, or if you believe the charges are inaccurate or unauthorized, this can form a solid basis for your defense. Clearly detailing these discrepancies in your formal answer to the court is vital, so gather any bank statements, receipts, or correspondence that can substantiate your position.

Could This Be Identity Theft or a Mix-Up?

In some situations, the debt a collector is trying to pursue isn't actually yours at all. This could be a result of identity theft, where someone else fraudulently opened an account or incurred charges in your name. Alternatively, it might be a simple case of mistaken identity – the debt collector could have confused you with someone else who has a similar name. If you don't recognize the debt or have reason to believe you're a victim of fraud, this is an extremely important defense to raise. You'll need to clearly state this in your response to the lawsuit and be prepared to provide supporting evidence, such as an identity theft report filed with the police. It's essential to assert these defenses if you suspect the debt isn't your responsibility.

What Happens If You Don't Respond?

Ignoring a debt collection lawsuit might seem like the easiest path, especially when you're feeling overwhelmed, but it's a decision that can lead to serious and lasting problems. When you receive a summons and complaint, the clock starts ticking, and choosing not to act essentially means you're forfeiting your right to tell your side of the story. This inaction can have significant legal and financial repercussions that are often much harder to deal with than facing the lawsuit head-on. Understanding exactly what can unfold if you don't respond is the first step in protecting yourself and making informed choices. Let's look at what typically happens when a lawsuit from a debt collector goes unanswered.

Default Judgments: What They Mean for You

If you don't file a formal response (an "Answer") with the court by the deadline specified in the summons, the debt collector can ask the court for a default judgment against you. Think of a default judgment as an automatic win for the collector. Because you didn't show up to contest the claims, the court assumes the collector's allegations are true. As the Federal Trade Commission (FTC) points out, failing to respond allows the debt collector to win by default. This judgment then gives them powerful legal tools to collect the debt, such as garnishing your wages, levying your bank accounts, or even placing a lien on your property, making a tough situation even more challenging.

The Financial Fallout of Not Responding

Choosing not to respond to a lawsuit is a gamble with high stakes for your financial well-being. When you ignore the summons, you lose your opportunity to challenge the debt. Maybe the amount is incorrect, perhaps it's not even your debt, or maybe the debt collector doesn't have the legal right to sue. By not responding, you give up the chance to present these defenses or to negotiate a settlement for a lower amount. Responding to the lawsuit, even if you plan to admit you owe the debt, keeps your options open and gives you some control over the process. It’s a crucial step to avoid a default judgment and the aggressive collection actions that can follow.

How Ignoring a Lawsuit Hits Your Credit

The consequences of not responding to a debt collection lawsuit extend directly to your credit health. When a debt collector wins a default judgment against you, this information typically gets reported to credit bureaus. A judgment is a significant negative event on your credit report and can severely lower your credit score. According to the FTC, a judgment not only allows the collector to pursue actions like wage garnishment but also negatively impacts your credit score. This can make it much harder and more expensive to get loans, rent an apartment, or even get a cell phone plan in the future. Protecting your credit means taking the lawsuit seriously from the start.

Getting Legal Help: Your Options

Facing a debt collection lawsuit can feel incredibly stressful, but please know you don't have to figure everything out by yourself. Understanding where you can turn for legal assistance is a powerful first step in protecting your rights and preparing your response. Whether you need someone to represent you or just some solid advice on how to proceed, there are several avenues to explore. Let's look at how you can find the support that's right for your situation.

Finding Affordable (or Free) Legal Help

One of the first concerns many people have is the cost of legal help, and it's a completely valid worry. The good news is that financial constraints don't have to prevent you from getting assistance. Many organizations are dedicated to providing support to those who can't afford a lawyer. Legal aid societies, for example, exist in many communities and offer services specifically for low-income individuals. Pro bono programs, where lawyers volunteer their time, are another excellent resource. The Federal Trade Commission offers consumer advice suggesting that "If you can’t afford a lawyer, look for legal aid organizations in your area that may offer free or low-cost services." Taking the time to research these options can make a significant difference in how you approach the lawsuit.

When to Talk to a Consumer Rights Attorney

Even if you're considering handling the lawsuit yourself, or if you're seeking free legal aid, speaking with a consumer rights attorney can be incredibly valuable. These lawyers specialize in consumer law and can offer crucial insights into your specific case. They can help you understand the claims being made against you, identify any potential defenses you might have, and explain the often-confusing legal procedures involved. The California Courts website advises, "If you are being sued for a debt, it is a good idea to talk to a lawyer who can help you understand your options and build your defense." An initial consultation might clarify your path forward and empower you with knowledge, even if you don't end up hiring them for full representation.

Using Online Tools and Legal Resources

In addition to connecting with lawyers or legal aid, a growing number of online tools and resources can assist you in preparing your response to a debt collector lawsuit. Some digital services are designed to help you generate the necessary legal documents, like your Answer—the formal document you file with the court to state your side of the story. These platforms can guide you through the process, ensuring you include necessary information and are aware of critical deadlines. You might also find helpful templates or guides online, such as sample Answer forms, often available through local court websites or general legal information sites. Searching for "sample answer to debt collection lawsuit [your state]" can be a good starting point for finding such resources.

Negotiating a Settlement with the Debt Collector

Dealing with a debt collection lawsuit is tough, but a courtroom battle isn't always the end game. You might be able to work things out by negotiating a settlement directly with the debt collector. This usually involves agreeing on a payment, often for less than the full amount claimed, to resolve the debt. It’s a way to find a resolution and move forward.

Is Settling the Debt an Option for You?

If paying the full debt amount feels overwhelming, know that you have options. Settling the debt can be a practical path forward, especially if your finances are tight. The good news, as the Consumer Financial Protection Bureau highlights, is that "You may be able to negotiate a settlement for less than the full amount you owe." This isn't just about paying less; it’s about finding a resolution that allows you to move past the stress of the lawsuit. A successful settlement can also help prevent further damage to your credit, offering a way to close this chapter.

Crafting a Repayment Plan They Might Accept

When you're ready to discuss a settlement, having a clear plan is key. Think about what you can realistically offer. Forbes Advisor suggests that "You can propose a lump-sum payment or a payment plan that fits your budget." A lump-sum offer, even if it's less than the total, can be attractive to collectors because they get a guaranteed amount upfront. If a lump sum isn't feasible, a structured payment plan over a set period could work. Be prepared to explain your financial situation; showing them you've thought it through and are serious about resolving the debt can make them more willing to find common ground.

Always Get Your Settlement Agreement in Writing

This step is crucial: once you reach an agreement with the debt collector, get it all in writing before making any payment. Don't proceed until you have a formal, written confirmation of the terms. As Experian wisely advises, "Always get the settlement agreement in writing before you make any payments." This document is your proof. It should clearly detail the agreed-upon settlement amount, the payment schedule, and confirm that this payment will fully satisfy the debt. This written record is vital for protecting you from future disputes.

Preparing for Your Court Date

Facing a court date can feel pretty daunting, I get it. But trust me, being well-prepared can make a world of difference in how you feel and how things go. Think of this as your chance to clearly and calmly present your side of the story. Taking the time now to get organized and understand what’s coming will help you walk into that courtroom with more confidence. It’s all about putting your best foot forward and making sure the court has all the information it needs to make a fair decision. Preparation truly is your best ally here, and these next steps will walk you through exactly what you need to do to get ready. We'll cover organizing your documents, understanding the court's way of doing things, and what you can generally expect when you're actually there.

Get Your Paperwork in Order

Alright, first things first: let's tackle that pile of paperwork. Before you even start thinking about filling out any official court forms, like your Answer to the lawsuit, you’ll want to gather all your records connected to this debt. This means finding any statements, bills, letters you’ve received from the debt collector, and any other documents you might have stashed away. Once you have them, spread them out and take a good look through everything.

This step is super important because these documents are essentially your evidence. They can help you understand exactly what the debt collector is claiming and, crucially, help you spot any mistakes or defenses you might be able to use. Having all your information neatly organized will make it so much easier to support your case and ensure you don’t overlook any key details when you respond to the lawsuit.

Learn the Ropes: Court Procedures

Understanding court procedures might sound like a big hurdle, but it’s mostly about getting familiar with the basic rules. When you respond to a lawsuit, it’s not just a matter of saying you disagree. It involves filing specific paperwork with the court in a particular way. You’ll need to carefully address every point made in the complaint that the debt collector filed against you and clearly state any defenses you have. And remember, there are usually strict deadlines for doing all of this.

It’s also incredibly important to keep your contact information current with the court. If you move or change your phone number, make sure you let the court clerk know right away. This ensures you’ll receive all official notices and communications about your case. Missing an important notice could mean missing a critical step or even a hearing, so staying on top of this is absolutely key.

Your Day in Court: What to Expect

When your court date finally arrives, remember this: by responding to the lawsuit and showing up, you’re making the debt collector prove their case. They are the ones who have to demonstrate to the court that you actually owe the debt, that the amount they’re claiming is accurate, and that they legally have the right to sue you for it. This is a really important part of how you can defend yourself.

It is absolutely vital that you attend your hearing. If you don’t show up, the court will most likely issue something called a default judgment against you, which basically means the debt collector wins automatically without you even getting a chance to speak. Being present allows you to present your evidence, clearly state your side of things, and respond to whatever the debt collector or their attorney says. Think of it as your dedicated time to be heard directly by the judge.

Know Your Rights and Move Forward

Facing a debt collection lawsuit can feel incredibly stressful, but this is precisely the moment to arm yourself with information and think clearly about your next steps. Understanding your rights isn't just a defensive move; it's about taking back some control. The law provides certain protections, and knowing them can make a huge difference in how you handle the lawsuit and its aftermath. This isn't just about getting through a court case; it's about laying the groundwork for a more stable financial future. Remember, you're not alone in this, and there are established rules and resources designed to help people in your exact situation. Let's walk through some key things you should be aware of. Being informed will help you make sound decisions and start the process of moving forward, regardless of the lawsuit's outcome.

The FDCPA: Your Shield Against Unfair Practices

Think of the Fair Debt Collection Practices Act (FDCPA) as your primary line of defense against improper behavior from debt collectors. This important federal law clearly outlines what debt collectors are, and are not, allowed to do when trying to collect a debt. For instance, they can't harass you with constant calls, lie about who they are or how much you owe, or threaten you with actions they can't legally take. If you believe a debt collector has stepped over these boundaries, you have the power to act. You can report their conduct to agencies like the Federal Trade Commission (FTC), your state's Attorney General, or the Consumer Financial Protection Bureau (CFPB). Knowing these rules exist helps you recognize unfair treatment and stand up for yourself.

Don't Forget Your State's Consumer Laws

While the FDCPA offers a solid foundation of consumer rights nationwide, it's really important to know that your individual state likely has its own set of consumer protection laws. Sometimes, these state-specific laws can provide even stronger protections or cover different situations than the federal rules. For example, the California Courts self-help guide notes that in California, experiencing a financial hardship, like losing your job, doesn't automatically mean you don't have to pay a debt. Understanding these local details is vital because they can significantly shape your defense strategy if you're sued. It’s worth taking a little time to look into the laws where you live; it could really impact your approach.

Steps to Rebuild Your Credit Post-Lawsuit

Ignoring a lawsuit from a debt collector can unfortunately lead to some pretty tough consequences. If you don't respond to the court, the collector will likely win by default, resulting in a default judgment against you. This judgment is more than just a court decision; it gives the collector legal power to pursue the debt through actions like garnishing your wages, seizing funds from your bank account, or even placing a lien on your property. As the FTC explains, a judgment will also negatively affect your credit score, making future financial goals harder to achieve. Dealing with the lawsuit directly, and then taking thoughtful steps to manage your finances and credit, is essential for your recovery.

Debt Lawsuit Myths vs. Reality

When you're facing a debt lawsuit, it's easy to get sidetracked by misinformation. Plenty of well-meaning folks might offer advice, but not all of it is accurate—and some common beliefs can actually set you back. Let's clear the air about a few persistent myths so you can approach your situation with solid facts and a clear head. Understanding the reality of debt lawsuits is your first step toward effectively protecting your rights.

Myth: "Ignoring the lawsuit will make it go away."

This is a big one, and honestly, it’s probably the most damaging misconception out there. Please know that ignoring a lawsuit won't make it disappear; in fact, it usually makes things much worse. If you don't respond to the court by the deadline, the debt collector can ask for a default judgment against you, and they'll likely get it. The Federal Trade Commission warns that this can lead to serious consequences like wage garnishment, money being taken from your bank account, or even a lien on your property. Plus, a default judgment will almost certainly harm your credit report. Those legal papers might look scary, but facing them by filing a response is crucial.

Myth: "You must have a lawyer to respond."

While having a lawyer can be a fantastic asset, especially if your situation feels complicated, you absolutely have the right to respond to a debt collection lawsuit yourself. Many people successfully file their initial Answer—that’s the formal name for your response—without hiring an attorney. The process typically involves carefully filling out specific court forms, addressing every claim the collector made in their complaint, and stating any defenses you might have. The most important part is to be thorough and submit your Answer to the court before the deadline, which you'll find on the summons. So, don't let the idea of legal fees prevent you from taking action; you can definitely take this first step.

Myth: "All debts are valid and collectible."

It’s easy to assume that if a debt collector is suing you, the debt must be legitimate and the amount they're claiming is correct. However, that's not always the case. Debt collection lawsuits can, and sometimes do, contain errors. The amount owed might be wrong, the collector might not have the proper documentation to prove they actually own the debt, or it might not even be your debt in the first place due to a mix-up or identity theft. This is precisely why it's so important to respond to the lawsuit. By filing an Answer, you make the collector prove their claims and give yourself the chance to dispute any inaccuracies.

Related Articles

• Guide on How to Navigate a Debt Lawsuit
• The Fundamentals of Debt Collection
• Debt Collection Lawsuit Dismissal Guide
• Respond to Debt Lawsuit
• Top Violations of the FDCPA by Debt Collectors

Frequently Asked Questions

I just got served with lawsuit papers. What's the most critical first step I should take? Okay, deep breath! The very first thing is to carefully look at those documents – the Summons and Complaint. Pay close attention to who is suing you and, most importantly, the deadline for you to respond. Missing that deadline is a big deal, so mark it on your calendar immediately. Then, take a moment to confirm with the court listed on the papers that the lawsuit is actually real and filed against you.

I'm worried about legal fees. Can I actually respond to this lawsuit without hiring an attorney right away? That's a totally understandable concern. And yes, you absolutely can file your initial response, usually called an "Answer," with the court yourself. Many people do! The key is to use the correct court forms, address every point the collector made in their complaint, and list any reasons why you think they shouldn't win. Getting that Answer filed on time is your top priority to protect your rights, even if you decide to seek legal advice later.

What if I look at the lawsuit and don't recognize the debt, or the amount seems way off? That's exactly why responding is so important! If the debt doesn't look familiar, or if the amount they're claiming seems incorrect, those are definitely things you need to state in your formal Answer to the court. It's the debt collector's job to prove you owe the debt and that the amount is accurate. Your response is your chance to challenge them on those points and make them show their proof.

The debt collector has already sued me. Is there still a chance I can negotiate a settlement instead of going to court? Yes, absolutely! Even after a lawsuit is filed, the door to negotiation is often still open. Many debt collectors are willing to discuss a settlement because it can save everyone time and money. You can reach out to them (or their attorney) to see if you can agree on a payment amount, perhaps less than what they're suing for, to resolve the debt. Just be sure to get any agreement in writing before you send any money.

Honestly, this is all so overwhelming. What's the biggest mistake I could make right now? I completely get how overwhelming this feels. The single biggest mistake you could make is to ignore the lawsuit and hope it goes away. It won't. If you don't file a response with the court by the deadline, the collector will almost certainly win automatically by what's called a "default judgment." That gives them more power to collect, like garnishing wages. Facing it head-on by responding is always your best move.