A process server knocks on your door and hands you a summons. You are being sued by a company like “Midland Funding” or “Portfolio Recovery” for an old credit card debt. Panic sets in.
But here is the secret: These companies buy bad debt for pennies on the dollar and often lack the paperwork to prove you owe it. In 2026, fighting back is easier than you think.
1. The “Zombie Debt” Defense (Statute of Limitations)
Every state has a time limit on debt lawsuits (usually 3 to 6 years). If the last payment you made was 7 years ago, the debt is Time-Barred. You must file an “Answer” stating this defense. If you do, the case is dismissed immediately.
2. Demand the “Chain of Title”
The company suing you is rarely the original bank (like Chase or Citibank). They are a third-party buyer. Demand they prove the Chain of Title—every contract showing the sale of your specific debt from the bank to them. They often cannot produce this paper trail.
3. Never Admit the Debt (The Reset Trap)
If a collector calls, never say “I know I owe this.” In some states, admitting the debt or making a $5 payment can Restart the Statute of Limitations, making an old expired debt brand new again. Stay silent and communicate only in writing.
4. File a Sworn Denial
Don’t just ignore the court date. If you don’t show up, they get a “Default Judgment” and can garnish your wages. File a generic “General Denial” with the court clerk. This forces them to prove every penny of the debt, which is expensive and difficult for them.
5. Countersue for FDCPA Violations
Did they call you at work? Did they threaten jail? Did they call your neighbors? These are violations of the Fair Debt Collection Practices Act (FDCPA). You can countersue them for $1,000 per violation plus your attorney fees. Often, they will drop the lawsuit just to make you go away.
Final Thought: Being sued for debt is a numbers game. They expect you to fold. If you fight, you become unprofitable. Consult a Consumer Protection Lawyer.