So you owe debt.
Welcome to quicksand.
Every bill, every letter, every shady phone number. It piles up quickly. But here’s something you may not know…
Not all debt collection lawsuits are valid.
There’s a chance you could be dealing with an invalid claim. Figuring out valid vs. invalid claims could save you thousands. Maybe even the difference between losing in court and walking away debt free.
What you’ll learn:
- How to Know If a Debt Claim Is Valid
- The Problem with Debt Collection Claims
- Valid Debt Lawsuits
- Signs of an Invalid Claim
- How an Attorney Can Help
- How to Fight Back
Some debt collection claims are valid. Many are not. Let’s break down both scenarios and point out the difference.
The Problem with Debt Collection Claims
It’s no secret debt collection lawsuits are a growing problem.
In fact, research from Pew Charitable Trusts found there were as many as 4.7 million debt collection lawsuits filed in 2022. And that number is continuing to grow in 2024 and 2025.
The issue?
Most consumers being sued have no idea what to do. Pair that with a mounting debt collection problem and you’ve got yourself a crisis.
Working with a debt attorney from firms like WH Law can help you understand whether or not a claim is valid. Or if you have any defenses that could get your case thrown out completely.
Truthfully, debt collectors want you to be confused. They know most people don’t know their rights or how to spot a suspicious claim.
That’s why it pays to know the difference between valid vs. invalid claims.
Valid Debt Lawsuits
First things first, not all debt collection claims are fake.
Some claims are legitimate and the creditor can actually enforce the debt. It’s important to know what distinguishes valid debt from bogus claims.
Here’s what qualifies as a valid claim:
- The debt in question can be verified
- Amounts are accurate
- Right person is being sued
- Filed within statute of limitations
- Creditor has standing to sue
If a debt collector or creditor can prove each of these points, the lawsuit is considered valid. Ignoring the lawsuit will result in a judgment against you. Wages will be garnished, bank accounts frozen, etc.
But when one or more of these things are missing?
You may have an invalid claim on your hands.
Signs of an Invalid Claim
Here’s the thing most people don’t realize…
Debt buyers purchase old debt for fractions of the cost.
These companies buy the rights to your debt and try to collect what you owe. But along the way, they often lose the documentation needed to validate the debt.
Look out for these common signs:
Wrong Amount: Debt buyers can tack on interest, fees, and collection costs. That balance you supposedly owe can quickly become more than you legally owe.
Old debt. Each state has a statute of limitations on collecting debt. This ranges from 3-6 years for most states. If the collector waited too long to sue, they don’t have legal ground to stand on.
A statute of limitations can make any debt collector go away. Once that time limit expires, they can’t use the court to force you to pay.
Missing paperwork. A collector must prove they own your debt. This means providing paperwork that documents the transfer of debt from the original creditor to them. Debt buyers often lose this paperwork.
Incorrect debtor. Identity theft, mixed files… it happens. Don’t just assume a debt is yours.
Previously paid debt. Some collectors try to collect on previously discharged debts (like in bankruptcy) or errors.
How an Attorney Can Help
If you’re thinking about going it alone, don’t.
Statistics show that over 70% of defendants choose to do nothing or defend themselves in debt collection lawsuits. The majority of those cases end with default judgments against the consumer.
Don’t roll over and give up, but know this…
Debt collectors have entire teams working for them. Your job vs. their job.
Hiring an attorney evens the playing field by:
- Examining the lawsuit for possible defenses
- Questioning missing or inaccurate paperwork
- Negotiating with creditors
- Going to court on your behalf
- Protecting your rights and assets
Especially when it comes to debt buyers. These companies file thousands of lawsuits monthly. They aren’t playing around. And they have experienced lawyers on their side.
Don’t walk into court alone.
Valid Defenses
Just because you owe debt doesn’t mean you don’t have legal recourse. Below are some of the most common defenses used to fight debt collection lawsuits.
Statute of Limitations: If a creditor waits too long to file a lawsuit, you can use the statute of limitations as a defense. Each state varies as does the clock based on debt type.
Lack of Standing: A collector has to prove they own the debt. Ask to see paperwork documenting the transfer of debt from the original creditor to the current collector. If they can’t produce this, they don’t have standing to sue.
Improper Service: You must be properly notified of a lawsuit. If you weren’t served per your state’s guidelines, you may be able to get the case dismissed.
Incorrect Amount: Creditors must be able to prove the amount of debt they claim you owe. Questioning the accuracy of the amount due can lead to reductions or dismissal.
FDCPA Violations: Debt collectors who harass, use false statements, and employ unfair practices are breaking the law. You may be able to countersue for violations of the Fair Debt Collection Practices Act.
How to Fight Back
So you think your claim is bogus. Now what?
Step 1: Don’t ignore the lawsuit.
If you don’t answer to the courts, you automatically lose!
Step 2: Verify the debt.
A collector has 30 days from initial contact to provide you proof of debt in writing. Request verification of the debt. They need to validate what you owe before collecting.
Step 3: Check your state’s statute of limitations.
Do your research. Find out what the time limits are for your state and type of debt. If they’ve passed, tell the collector to take a hike.
Step 4: Gather any documentation you have.
Bank statements, payment records, any communication.
Step 5: Contact a debt attorney.
They’ll be able to point out defenses you may not have considered.
Time is of the essence. Courts don’t care if you waiting for time to pass. They have deadlines that must be met. If you wait too long, you lose your opportunity to fight back.
Wrapping It Up
Knowing the difference between valid vs. invalid claims matters.
Debt collection lawsuits make up approximately 25% of all civil cases in America’s courts. Something is obviously broken.
While some debts should indeed be paid, others aren’t quite so cut and dry.
Instead of blindly accepting defeat, arm yourself with knowledge. Understand when it makes sense to sue, and when it doesn’t.
Then decide if fighting back is right for you.
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