Key Takeaways

• The time to respond to a lawsuit is short. Read the papers and act at once.
• Collectors may not sue or threaten to sue on a debt that is too old.
• The time limit to sue on a consumer debt is generally 4 years in Pennsylvania, 6 years in New Jersey and 3 years in New York, Maryland and Washington, D.C.
• Debt buyers often cannot prove they own the debt or what is owed.
• Violations in the suit or before it can support a counterclaim or separate case.

What Happens If You Ignore the Lawsuit?

The collector can ask the court for a default judgment. With a judgment, it may be able to garnish wages, freeze a bank account or put a lien on property, depending on the state. A default is much harder to undo than a suit is to answer.

What Are the Time Limits on Old Debts?

Each state sets a deadline, called the statute of limitations, for suing on a debt. Federal rules forbid a debt collector from suing or threatening to sue on a debt after that deadline has passed.

• Pennsylvania: generally 4 years for contract debts, including most credit card debt.
• New Jersey: generally 6 years.
• New York: 3 years for consumer credit debts. After it runs, a payment or promise to pay does not restart it.
• Maryland: generally 3 years.
• Washington, D.C.: generally 3 years.

When the clock starts, and whether a payment restarts it, can depend on the state and the debt. Do not make a payment on an old debt until you know where it stands.

Common Defenses

• The debt is too old.
• The plaintiff cannot prove it owns the debt.
• The amount includes interest or fees not allowed by the contract or by law.
• It is not your debt, or it was paid, settled or discharged in bankruptcy.
• You were not properly served.

Can You Sue the Collector Back?

Yes. A collection lawsuit that seeks the wrong amount, is filed on time-barred debt or misstates the facts can itself break the FDCPA. So can conduct before the suit. Those claims can be raised in the same case or a separate one.

Already Have a Judgment Against You?

It may still be possible to open the judgment, especially if you were never properly served. If the judgments and debts are more than you can manage, bankruptcy stops garnishments and collection. See Chapter 7 bankruptcy.

Frequently Asked Questions

How long do I have to answer a collection lawsuit?

It depends on the court and the state. In many courts it is between 14 and 35 days after you are served. The papers you received will say. Do not wait for the last day.

Can they sue me on a debt from 10 years ago?

In most cases, no. Every state in which we practice has a time limit shorter than 10 years for consumer debts, and a debt collector that sues on a time-barred debt can be liable under the FDCPA.

Should I settle?

Sometimes settling makes sense. But many collection suits have defenses or counterclaims that change the numbers. Get advice before you agree to anything.

Will a collector garnish my wages?

Only after it gets a judgment, and state rules limit how much can be taken. Pennsylvania sharply limits wage garnishment for most consumer debts.

Email Us About a Debt Collector

Email msiddons@siddonslaw.com with the name of the collector, what happened and when, and the state you live in. The first conversation is free. All fees and costs are set out in a written engagement letter. Attorney Michael A. Siddons represents consumers in Pennsylvania, New Jersey, New York, Maryland and Washington, D.C., and the firm has handled hundreds of Fair Debt Collection Practices Act cases.