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What Happens When You Get Served Papers for Debt?

Sarah Edwards | January 14, 2026

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Getting served papers for debt means that a creditor or debt collector is using the legal system to compel you to pay. But you have rights. SoloSuit explains how to respond quickly to avoid a default judgment and provides tools to help you settle your debt without going through a lengthy legal process.

Many Americans have no familiarity with the legal system until they face a debt collection lawsuit. Getting served papers for debt can be a terrifying experience — but it’s a surprisingly common one.

Roughly 1 in 20 Americans with debt in collections are eventually sued, which is why it’s important to know what to do if served papers for debt. In this guide, you’ll learn how to respond to a debt collection Summons and get yourself out of a difficult situation.

Respond with SoloSuit

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Why am I getting served papers for debt?

Getting served papers for debt simply means that a creditor or debt collector believes that you owe money and is suing you to collect payment. In some cases, a debt collector may have been trying to contact you and collect this money, and now a debt lawsuit has become the last resort to force you to pay your debt.

That’s why you should never ignore debt collection phone calls or letters. If you’ve been contacted by a debt collector, your first step should be to verify that the debt is yours. If the debt collector is unable to definitively tie you to the debt, you’ll have a much stronger chance of winning the court case.

Ask debt collectors to validate your debt.

What happens if I lose my debt collection case?

Of course, if the debt is legitimately yours, you risk losing the debt collection lawsuit. If the court rules against you, you could be compelled to pay the full amount along with any interest, court fees, or legal expenses that the debt collector requests.

A judgment against you is enforceable for between three and twenty years, depending on your state. And in many states, creditors can renew this period indefinitely.

A judgment grants creditors the legal right to seize selected assets or garnish your wages. That’s why it’s vital to respond appropriately to a debt collection lawsuit and negotiate a settlement.

Learn what to do if creditor sues you

One of the easiest ways to lose a debt collection lawsuit is to do nothing at all. If you fail to respond after getting served papers for debt, the court can render a default judgment in favor of the creditor or debt collector.

Whether you’ve been served papers for credit card debt, medical bills, student loans, or another type of debt, you’ll need a strategy that protects you while giving you a chance to address the debt head-on.

Respond quickly to a debt collection lawsuit

After receiving papers for a debt collection case, your next step should be to file an Answer with the court. An Answer is a legal document that expresses your willingness to fight the lawsuit. Failing to file this document (or missing the deadline) can result in a default judgment. In some cases, you have as little as 14 days to file an Answer, so act fast.

SoloSuit has helped countless individuals fight debt collection lawsuits. You can too. Simply answer a few basic questions and then draft an Answer. SoloSuit can even file it for you with the local court for added assurance.

Let’s take a look at an example of how SoloSuit can help:

Example: Beth had never been sued before. So when she received a debt collection Summons for unpaid medical bills, she didn’t know where to turn. A friend mentioned SoloSuit, and Beth soon discovered that it was easy to use the platform to create an Answer. Beth asked SoloSuit to have her Answer reviewed by an attorney, after which SoloSuit filed the Answer on her behalf. This gave her time to figure out her next steps and work toward resolving the situation outside of the courtroom.

Draft and file your Answer today by using SoloSuit.

Settle your debt out of court

Can you settle credit card debt after a lawsuit? After you find out about the lawsuit, you might have time to negotiate a debt settlement with your creditor or debt collector. In fact, many creditors would rather negotiate a lower settlement than undergo a lengthy legal process.

After you file an Answer, you can use SoloSettle to work with the creditor to negotiate a lower settlement amount. SoloSettle’s online tool allows you to submit an initial offer through the platform directly, so you never have to worry about communicating directly with the creditor.

For more tips on settling your debt, check out this helpful video.

However, if you go to court and lose your lawsuit, you lose a great deal of bargaining room.

A judge might issue a stipulated judgment, which may allow you to repay a smaller amount. But in most cases, a legal judgment will grant power to your creditor and strip you of your negotiating position. That’s why it’s vital to settle your debt as quickly as possible to avoid a judgment and move on with your life.

Does a debt collection lawsuit appear on my credit report?

Under the Fair Credit Reporting Act (FCRA), a debt collection lawsuit cannot appear on your credit report unless it results in a judgment against you. However, the debt itself can appear on your credit report, and any settlement you come to may also remain on your report.

However, most debtors discover that it’s better to resolve their debt so that they can start rebuilding their credit. And even the worst financial blemishes will typically leave your credit report after seven years — though some judgments may last longer, depending on your state.

Resolve to start over

Getting served papers for debt doesn’t have to be the end of the world. But it should be the starting point for you to resolve your unpaid debt once and for all. Responding to the debt collection lawsuit and working to settle your debt can set you free from debt collectors and put you on the path to rebuilding your financial future.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

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If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

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Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

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Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

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