Getting served with a lawsuit from a credit card company or debt collector is scary. Your stomach drops, you assume you’ve already lost, and the paperwork makes it sound like the judgment is a done deal.
It isn’t. These cases are far more winnable than most people realize — but only if you take the right steps, and only if you act fast. Debt collectors are counting on you to do nothing. Here’s what to do instead.
What happens if I don’t respond to the lawsuit?
This is the single most important thing to understand, so let’s start here.
If you ignore the lawsuit, the collector wins automatically. It’s called a default judgment, and it’s exactly what they’re hoping for. They don’t have to prove you owe the money. They don’t have to show the court a single document. They just have to show that you were served and didn’t answer in time — and the judge signs off.
Once a collector has a judgment against you, the situation gets much worse:
- They can garnish your wages (in Arizona, up to roughly 25% of your disposable earnings).
- They can levy your bank account and pull the funds directly.
- They can put a lien on your property.
- The judgment accrues interest and can be renewed for years.
Here’s the part that matters most: a huge share of debt collection lawsuits end in default judgment simply because people freeze and never respond — not because the collector had a strong case. Many of these collectors would struggle to prove the debt if anyone actually made them try. By doing nothing, you hand them a win they may not have earned.
The takeaway: never ignore a debt collection lawsuit. Even a basic, timely response changes everything.
Step 1: Find your deadline and calendar it today
Your summons tells you how long you have to respond. In Arizona, it’s usually 20 days from the date you were served (check your specific paperwork — the deadline and court can vary). Miss it, and you’re back to the default judgment problem above.
Write the deadline down the moment you read this. Everything else flows from protecting that date.
Step 2: Figure out who is actually suing you
Read the lawsuit carefully and identify the plaintiff. There’s a big difference between:
- The original creditor (the bank whose card you actually used), versus
- A debt buyer / junk-debt collector (a company that bought your old debt for pennies on the dollar — names like Midland Funding, Portfolio Recovery, LVNV, Cavalry, and similar).
This matters because debt buyers frequently can’t produce the documentation to prove they own your debt or that the amount is correct. They buy debts in giant bundles, often with little more than a spreadsheet. When you make them prove their case, many can’t.
Step 3: File a written Answer with the court
Do not just call the collector. You respond by filing a formal Answer with the court before your deadline.
In your Answer, you respond to each of the plaintiff’s claims. For anything you don’t personally know to be true — how much is owed, whether this company actually owns the debt, whether the math is right — you’re allowed to deny it or state that you lack enough information to admit or deny. You are not required to take their word for it.
This single step takes the case out of “automatic win” territory and forces the collector to actually back up their claims.
Step 4: Make them prove it
In a debt collection lawsuit, the burden of proof is on the collector, not on you. To win, they generally need to show:
- A signed agreement or proof you opened and used the account.
- A complete record of statements and the balance.
- An unbroken chain of ownership if the debt was sold (often multiple times).
Through the legal process, you can demand this documentation. This is where a large number of these cases fall apart — the collector simply doesn’t have the records, especially when the debt has changed hands more than once.
Step 5: Check the statute of limitations
Collectors have a limited window to sue. In Arizona, the statute of limitations on credit card debt is six years (A.R.S. § 12-548). The Arizona Supreme Court clarified in Mertola, LLC v. Santos that the clock generally starts running at your first missed payment that was never cured — not the last payment, and not when the debt was sold.
If they’ve sued you outside that window, the debt is “time-barred” and that can be a complete defense — but you typically have to raise it yourself in your Answer. A judge won’t do it for you, which is yet another reason ignoring the lawsuit is so costly.
Step 6: Watch for collector violations
Federal law — the Fair Debt Collection Practices Act (FDCPA) — limits what third-party collectors can do. If a collector harassed you, lied about the amount, threatened things they can’t legally do, or tried to collect a time-barred debt, those violations may give you leverage and, in some cases, a counterclaim that flips the case around.
Step 7: Don’t accidentally help the other side
Two common mistakes can damage your position:
- Admitting the debt or making a partial payment can, in some situations, restart the statute of limitations clock — turning an unwinnable case for them into a fresh one.
- Negotiating over the phone without a written agreement. If you settle, get every term in writing before you pay a dollar.
When in doubt, say less and respond in writing.
Your three real options
Once you’ve protected your deadline, you’re choosing among:
- Fight it. Make the collector prove their case. Strong option when they’re a debt buyer with thin documentation or the debt is time-barred.
- Settle. Often you can negotiate a fraction of the balance, especially once they realize you’re going to make them work for it. Always in writing.
- Bankruptcy. If you’re facing multiple debts or lawsuits, bankruptcy can eliminate the debt entirely and stop the lawsuit through the automatic stay. For many people drowning in debt, it’s the cleanest path to a fresh start.
The right move depends on your specific situation — who’s suing, how old the debt is, what they can prove, and what else you’re carrying.
You have more power than they want you to think
Debt collectors run on volume and intimidation. They file thousands of lawsuits expecting most people to panic and give up. The ones who respond, ask for proof, and assert their rights win or settle far more often than the ones who do nothing.
You don’t have to navigate it alone.
Talk to us before your deadline
At Arizona Consumer Law Group, we defend Arizonans against debt collection lawsuits every day — and we know how these collectors operate. If you’ve been served, the most important thing is to act before your response deadline runs out.
📞 Call (602) 887-6992 to schedule a free consultation.
Arizona residents: book a free strategy session and let’s build your defense.
Outside Arizona? We can connect you with a debt-defense attorney in your state.
This article is general information about debt collection lawsuits and is not legal advice. Reading it does not create an attorney-client relationship. Deadlines and laws vary by case and by court — if you’ve been sued, speak with a licensed attorney in your state about your specific situation as soon as possible.