Being served with a debt collection lawsuit can be a scary experience. Your heart races, your palms sweat, and you might feel overwhelmed. But panicking won't help. Taking swift and informed action is crucial. This blog post outlines the steps you should take if you're facing a collection lawsuit in Wisconsin.

1. Don't Panic, But Don't Ignore It Either:

Your first instinct might be to ignore the lawsuit, hoping it will go away. This is the worst thing you can do. Ignoring the lawsuit will likely result in a default judgment against you, meaning the debt collector wins the case automatically, and can then pursue wage garnishment, bank levies, or other collection methods.

2. Read the Documents Carefully:

The lawsuit documents (Summons and Complaint) contain vital information. They tell you:

• Who is suing you: Is it the original creditor or a debt buyer?
• How much they claim you owe: Does this amount seem accurate?
• The deadline to respond: This is extremely important. In Wisconsin, you typically have 20 days from the date of service to file an Answer. Mark this date on your calendar!

3. Determine Your Options:

You have several options when responding to a debt collection lawsuit:

• Negotiate a Settlement: Contact the debt collector or their attorney to discuss settling the debt for a lower amount or on more favorable terms. This is often a good option, even if you believe you don't owe the full amount. Get any settlement agreement in writing.
• File an Answer: This is a formal response to the lawsuit where you dispute the claims made against you. You can deny the debt, claim you already paid it, or raise other defenses. This is where you'll need to be very specific and follow the court's rules.
• Counterclaim: In some cases, you might have a legal claim against the debt collector, such as for violating the Fair Debt Collection Practices Act (FDCPA). You can file a counterclaim along with your Answer.
• Bankruptcy: If you're overwhelmed by debt, bankruptcy might be an option to consider. Consult with a bankruptcy attorney to explore this possibility.

4. Consider Legal Help:

Navigating the legal system can be complex. Consider consulting with a consumer law attorney in Wisconsin. They can:

• Review your case: Assess the validity of the debt and identify potential defenses.
• Help you file an Answer: Ensure your response is properly drafted and filed with the court.
• Negotiate a settlement: Work with the debt collector to reach a favorable agreement.
• Represent you in court: If the case goes to trial, an attorney can advocate on your behalf.

5. Gather Your Documentation:

Start gathering any documents related to the debt, such as:

• Loan agreements: Original contracts with the creditor.
• Payment records: Proof of payments you've made.
• Correspondence: Any letters or emails from the debt collector.

6. File Your Answer with the Court:

If you choose to file an Answer, you must do so with the appropriate court within the 20-day deadline. You'll also need to serve a copy of the Answer on the debt collector's attorney. Failing to file on time can result in a default judgment.

7. Be Prepared for Court:

If you file an Answer, the case might go to trial. Be prepared to present your evidence and argue your case before a judge.

Key Takeaways:

• Act quickly: Don't delay in responding to the lawsuit.
• Read everything carefully: Understand the claims against you and the deadlines you face.
• Explore your options: Consider settlement, filing an Answer, or bankruptcy.
• Seek legal help: A consumer law attorney can provide valuable guidance and representation.
• Gather your documents: Organize any records related to the debt.

Facing a debt collection lawsuit can be stressful, but by taking proactive steps and understanding your rights, you can navigate this process and work towards a positive resolution. Don't go it alone – seek help if you need it.

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