Receiving a summons for a debt collection lawsuit can be scary, but don't let fear lead you to ignore it! In Wisconsin, failing to respond to a lawsuit is the single biggest mistake you can make, as it will likely result in a default judgment against you. A default judgment allows the creditor to garnish your wages, freeze bank accounts, and place liens on property.

The good news? You have rights, and taking action puts you back in control. Here's a step-by-step guide on how to defend a debt collection case in Wisconsin.

Step 1: File Your Answer Immediately (Don't Miss the Deadline!)

Your most crucial deadline is the one to file a formal, written Answer with the court and serve a copy to the plaintiff (or their attorney).

• Determine the Deadline: In Wisconsin, this is often 20 days from the date you were served with the Summons and Complaint. Always check the documents you received for the exact deadline.

• Obtain the Correct Form: If your case is in Small Claims Court (typically for debts under $$10,000 in Wisconsin), the court system provides an official form called the Answer and Counterclaim (SC-5200V). Using this form is highly recommended for self-represented litigants. If your case is in Circuit Court (often for larger debts), you may need to draft your own document. Note - some small claims courts require you to appear in-person, versus a written answer. Make sure you read the summons for that information!

• Answer the Complaint: Your Answer must respond to every numbered allegation in the Complaint. You generally have three options for each statement:

  • Admit: You agree the statement is true.

  • Deny: You dispute the statement and force the plaintiff to prove it. This is often the best strategy for the main claims, such as the exact amount owed.

  • Deny due to lack of knowledge: You state you don't have enough information to form a belief about the truth of the allegation.

Step 2: Assert Your Affirmative Defenses

An affirmative defense is a legal reason why the plaintiff shouldn't win the case, even if some of their claims are true. By raising these defenses in your Answer, you put the burden on the collector to overcome them.

Common affirmative defenses in Wisconsin debt collection cases include:

• Statute of Limitations: For most contract debts (like credit cards, personal loans, and medical bills) in Wisconsin, the creditor has six years from the date of your last payment to file a lawsuit. If the debt is older, it may be time-barred, and this is a powerful defense.

• Lack of Standing/Proof of Ownership: This is especially effective against debt buyers. You can demand that the plaintiff prove they legally own the specific debt and have the right to sue you. They must demonstrate the "chain of assignment" from the original creditor.

• Improper Service: If you believe the Summons and Complaint weren't properly delivered to you according to Wisconsin's rules of civil procedure, you can assert this defense.

• Violation of Consumer Protection Laws:

  • Fair Debt Collection Practices Act (FDCPA): This federal law prohibits third-party debt collectors from engaging in abusive, unfair, or deceptive practices.

  • Wisconsin Consumer Act (WCA): This state law provides additional, strong protections for consumers, including restrictions on collection tactics and specific contract terms. If the collector violated either the FDCPA or the WCA, you may have a counterclaim for damages, which you would also file on the Answer form.

• Payment, Mistake, or Identity Theft: If you've already paid the debt, were a victim of fraud, or the amount is incorrect, list this as a defense.

Step 3: Formalize the Filing and Service

Once your Answer is complete, you must follow the correct court procedure:

1. Print Copies: Print at least three copies of your signed Answer: one for the court, one for the plaintiff (or their attorney), and one for your records.

2. File with the Court: Bring or mail the original Answer and a copy to the Clerk of Circuit Court in the county where the lawsuit was filed. If your case is in Circuit Court, you may have a filing fee.

3. Serve the Plaintiff: You must "serve" a copy of the Answer on the plaintiff's attorney (or the plaintiff if they aren't represented). It's best practice to send this copy via Certified Mail, Return Receipt Requested, to prove the date you sent it. Keep the receipt!

Step 4: Prepare and Negotiate

After filing your Answer, the lawsuit will proceed, giving you time to prepare your defense or attempt to settle.

• Gather Evidence: Collect all relevant documents: account statements, payment records, letters from the collector, and the original contract, if possible. You must be prepared to prove any defenses you raised.

• Consider Discovery: In larger cases, you may participate in Discovery, a formal information exchange process. You can use this to your advantage by sending the plaintiff written questions (Interrogatories) or requests for documents (Requests for Production) to make them prove they actually own and have accurately calculated the debt.

• Negotiate a Settlement: A strong defense gives you leverage. Many debt collectors prefer to settle rather than spend time and money litigating a contested case. You can try to negotiate a lump-sum payment for a reduced amount. Crucially, get any settlement agreement in writing and ensure it states the case will be dismissed "with prejudice" (meaning they can't sue you over the debt again).

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.