Being served with a debt collection lawsuit can be intimidating. However, it's crucial to remember that you have rights and options. Ignoring the lawsuit won't make it disappear; it will likely result in a default judgment against you, allowing the collector to garnish your wages or seize your assets. This post outlines steps you can take to defend yourself in a debt collection lawsuit in Wisconsin.

1. Don't Ignore the Lawsuit:

• Respond Promptly: The most critical step is to respond to the lawsuit within the specified timeframe. Failure to do so will result in a default judgment. Check the summons and complaint for the deadline.
• Understand the Documents: Carefully read the summons and complaint. These documents outline the collector's claims against you.

2. File an Answer:

• What is an Answer? An "answer" is your written response to the collector's complaint. It's your opportunity to deny or admit to the allegations and raise any defenses you may have.
• Drafting Your Answer:
  • Admit, deny, or state that you lack sufficient knowledge to admit or deny each allegation in the complaint.
  • Raise affirmative defenses, such as:
    • Statute of Limitations: Wisconsin has time limits for filing debt collection lawsuits. If the lawsuit is filed after the deadline, you can use this defense.
    • Lack of Standing: The collector must prove they own the debt and have the right to sue you.
    • Incorrect Amount: Dispute the amount claimed if you believe it's incorrect.
    • Identity Theft: If the debt is not yours, provide evidence of identity theft.
    • Bankruptcy: If you've filed for bankruptcy, the debt may have been discharged.
    • Wisconsin Consumer Act Violations: If the collector has violated the WCA, this is a valid defense.
  • File and Serve: File your answer with the court and serve a copy on the collector's attorney.

3. Discovery:

• What is Discovery? Discovery is the process of gathering information from the opposing party.
• Types of Discovery:
  • Interrogatories: Written questions you send to the collector.
  • Requests for Production: Requests for documents, such as the original credit agreement or account statements.
  • Requests for Admissions: Requests for the collector to admit or deny specific facts.
• Use Discovery to Your Advantage: Use discovery to obtain evidence that supports your defenses.

4. Negotiation and Settlement:

• Consider Settlement: You may be able to negotiate a settlement with the collector, such as a reduced payment or a payment plan.
• Get it in Writing: If you reach a settlement, ensure it's in writing and signed by both parties.

5. Trial:

• Prepare for Trial: If you cannot reach a settlement, you'll need to prepare for trial.
• Gather Evidence: Collect all relevant documents and evidence.
• Witnesses: If you have witnesses, prepare them to testify.
• Present Your Case: Present your evidence and arguments to the court.

6. Know Your Rights Under the Wisconsin Consumer Act (WCA):

• The WCA provides protections for consumers in debt collection situations.
• Collectors are prohibited from engaging in unfair or deceptive practices, such as:
  • Harassing or abusing you.
  • Making false or misleading statements.
  • Contacting you at inconvenient times or places.
• If a collector violates the WCA, you may have a counterclaim against them.

Key Takeaways:

• Responding to the lawsuit is crucial.
• Understand your rights under the WCA.
• Gather evidence and raise appropriate defenses.
• Consider negotiation and settlement.
• Don't hesitate to seek legal assistance.

By taking these steps, you can increase your chances of successfully defending yourself in a debt collection lawsuit and protecting your financial well-being.

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