Learn your rights to stop debt collection calls and dispute debts you don't owe.
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Credit card debt and debt lawsuits can feel confusing and stressful. You may be sued by a company that gave you the credit card, or by a debt collector who bought your debt. The company suing you is called the plaintiff. Who sues you affects what defenses you have. This guide explains your options.
What do I do if I am sued for credit card debt?
Do not ignore the lawsuit. If you are sued and don’t respond, you will owe the money. If it is your debt and you don’t have any defenses, you don’t have to file a response. Here are the steps to defend yourself against a debt lawsuit:
Step 1: Look into your debt to understand what is happening
Ask yourself:
- Does the debt balance reflect all payments and charges?
- Has the debt changed hands?
- If yes – has the new company provided proof of the assignment (proof that they actually bought the debt)?
Step 2: Gather evidence
Keep copies of all documents and communication.
Step 3: File an answer
An Answer is a written response filed with the court explaining your side of the case. You must have a legal defense to file an answer. Not being able to afford to make a payment is not a legal defense.
Here are some common defenses:
- When you are sued by the original creditor:
- It is not your debt
- You do not owe the debt
- The creditor waited too long to sue
- When you are sued by a debt buyer or collection agency:
- It is not your debt
- You never owed the debt
- The creditor waited too long to sue
- The debt buyer did provide proof of the debt, or proof of assignment (that the original creditor sold the debt to a debt buyer).
Explain the defenses clearly in your answer. If you do not file an answer and list all of your possible defenses, you may waive (lose) that defense.
Step 4: Consider filing a motion to dismiss or for summary judgment if the deadline has clearly expired.
This usually requires legal research or help from an attorney.
Some defenses require that you prove the defense. In other situations the plaintiff has to prove you owe the debt. These are called affirmative defenses.
- For example, arguing that the statute of limitations has passed, meaning that the creditor waited too long to sue, is called an affirmative defense. If you don’t include it in your first response to the lawsuit, you lose the right to argue it later.
How long does a creditor have to sue me?
A statute of limitations is a legal time limit. If a creditor waits too long to sue you, you can raise this as a defense. In Colorado, different time limits apply depending on whether your debt is considered an open account (like credit cards) or a contract, and where the credit card company’s main office is located.
In Colorado, a creditor has 3 years to sue over a contract and 6 years to sue over open accounts (like credit cards).
- Contracts: 3 years
- Open accounts (like credit cards): 6 years
Important!
Colorado courts sometimes apply the law from the creditor’s home state. This is called the borrowing statute. If the creditor’s state has a shorter time limit, that deadline applies instead.
What are some common mistakes when dealing with a debt lawsuit?
The most common mistake is missing deadlines to respond.
- Always respond to the lawsuit and any motions.
- Answers must be filed by the deadline set in the summons.
- A summons is an official notice from the court. It means you are required to show up or respond—ignoring it is not an option if you want to dispute the amounts owed.
- You must respond to motions within the time set by a court, which is usually 14 to 21 days.
If you do not file a response, the Court will generally grant the motion or enter judgment.
Important!
Lawsuits over credit card debt can be challenged, but you must act quickly and include all defenses in your first response. If you believe you have claims against a creditor, talk to an attorney as you may have to bring those claims as counterclaims in the debt collection lawsuit.
Need more help?
If you are low-income, a senior, or a veteran, you may qualify for free legal help from Colorado Legal Services (CLS). To apply or ask if you might qualify, go to the CLS website and find the office that serves your area. If you call or visit, CLS can help you in your native language.
You can get help from the courts. Every judicial district has staff called “Sherlocks” to help people with their legal questions. To find the Sherlock in your county, visit the Judicial Department’s Sherlock webpage.