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Debt Relief
Can debt collectors sue you while you’re in a debt relief program?
Updated Sep 30, 2026
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Key takeaways:
Debt collectors can sue you while you're in debt relief—but some debt relief companies may provide help.
Lawsuits are filed for at least 1 of 20 collection accounts.
Debts may still be negotiated after a lawsuit has been filed.
Ignoring a lawsuit may lead to a default judgment, which opens the door to wage garnishment or other collection actions.
Having past-due collections on your accounts is stressful. Of course, you'd pay these bills if you could. Starting a program such as debt relief to get rid of your debts is a positive step in the right direction.
Debt collectors can sue you while you're enrolled in a debt relief program. Enrolling doesn't stop legal action on its own. Some debt relief companies may offer help if it happens.
The information provided in this article is intended for general informational purposes only and should not be taken as legal advice. For personalized legal advice, consult with a qualified attorney licensed to practice law in your state.
When can debt collectors sue you?
Debt collectors usually don't sue. But at least one of every 20 collection accounts is the subject of a lawsuit, according to Pew Research, and the number is rising.
Before they sue, federal law says the debt collector must send you a written debt validation notice (also called a “debt validation letter”). This debt validation notice should tell you important details about the debt, like how much you owe, the creditor's name, and how to dispute the debt or get more information.
Debt collectors can file a lawsuit anytime after providing this debt validation information if you don't dispute the debt.
You get 30 days to dispute the debt or ask for more information in writing. (A letter requesting more information is often called a “debt verification letter.”) If you send a dispute letter or debt verification letter within 30 days, this forces debt collectors to stop collection activity. They can't file a lawsuit until they've replied to your dispute by verifying the debt.
If the debt collector sues you without providing a debt validation notice, you don't get an automatic win in court. But you may be able to sue the collector for violating the Fair Debt Collection Practices Act (FDCPA). That's the federal law that clearly spells out what debt collectors can and can't do. And you might be able to use any incorrect, outdated, or missing information about the debt to defend yourself against the lawsuit. A lawyer can review the facts of your case and advise you.
Timing matters too. Debt collectors sometimes file suit close to the deadline set by their state's statute of limitations. After that deadline passes, the law no longer allows them to come after you for that debt. A debt that's been unpaid for a while isn't automatically safer from a lawsuit.
When do debt collectors have to leave you alone?
The law is strict about when and how debt collectors can contact you. They have to inform you about the debt, but they don't get to contact you at inconvenient times or places or call too often.
“Inconvenient time or place” means whatever you say it means. If debt collectors call you at work or contact you via email, all you have to do is let them know it's “inconvenient” and that you want them to stop.
You can also tell them not to contact you at certain mailing or email addresses or phone numbers.
“Too often” means:
More than seven times within seven days.
Within seven days of speaking with you about a specific debt.
Unless you agree, they can't contact you before 8 AM or after 9 PM.
Unless you agree, they can't message you on social media.
Keep notes about any conversations, including times and dates. Note that in some states, original creditors, like your credit card company, may be able to keep contacting you.
What is a debt relief program?
Let's talk about debt relief, how it relates to those potential collection efforts, and whether debt relief could help you.
Debt relief is an agreement with your creditors. The goal is to get them to accept an amount that's less than you owe and forgive the rest. If you enroll in a debt relief program, an expert negotiator will do all the work to reach agreements with your creditors. Debt relief is for unsecured debts.
Debt relief can be helpful with collection accounts because debt collectors often buy the debts for much less than you owe. They can accept less (sometimes much less) and still make a profit. On the other hand, collection agencies hired to collect for a creditor may not be generous.
Debt relief professionals are experienced in dealing with both types of collections accounts.
What happens when you enroll in a debt relief program?
You meet with a debt consultant (online or on the phone) when you enroll in a debt relief program. Together, you'll review your finances and devise a plan you can afford.
Taking that first step to address your debt puts you on the road to a better financial situation.
Most unsecured debts can be enrolled in debt relief—including credit card balances, medical debt, unsecured personal loans, and collection accounts. You and your consultant will decide which of your debts to enroll.
Most people don't have a lump sum of money on hand to offer creditors, and most creditors won't entertain settling debt as long as you're making payments. So you'll probably choose to stop paying one or more of your creditors. (Expect credit damage if you miss payments.)
Instead, you'll put that money into an account that your debt relief company sets up. It's your money, and you control it. This account is a place where you can build up funds for making settlement offers. When there's enough saved up to make a reasonable offer, expert negotiators will start working with your creditors to resolve your debt. Once they reach an agreement and you approve it, the account will be settled. The debt relief company's fee is paid from the same account.
Here's where it can get sticky. Missing payments can result in debt collectors contacting you aggressively. Those efforts could include lawsuits. The debt relief company can't stop your creditors from pursuing you for payment.
But the situation isn't completely black and white.
Debt settlement may negatively impact your credit.
What happens if you ignore a debt lawsuit?
If you don't respond to a debt lawsuit by the deadline on the summons, the court may enter a default judgment against you. A default judgment gives the creditor an automatic win, along with legal tools to collect what the judgment awards.
Depending on your state, those tools may include:
Wage garnishment, where a portion of your paycheck goes to the creditor until the debt is paid
A bank account levy, which lets the creditor withdraw funds directly from your account
A lien, a legal claim against property you own. Generally, you wouldn’t lose the property, but the creditor gets paid first when the property is sold or transferred.
A default judgment may also add court costs and interest to what you owe. You preserve your right to defend yourself in court by responding to the summons, even if you don't have a lawyer.
If you're enrolled in a debt relief program and you're served with a lawsuit, contact your provider right away so they can help you understand your options.
What should you do if a debt collector sues you?
If you're sued, you'll get a summons and a complaint. The complaint tells you what they're suing over, and the summons tells you how to respond to the complaint and how much time you have to respond. This deadline is often 20 to 30 days. The exact window varies by state and court. If you're not in a debt relief program, you're responsible for answering the summons in time to preserve your rights. You might want to consult an attorney.
If you're enrolled in a debt relief program, you might already have help standing by—as some debt relief companies may provide some legal assistance as a part of the program.
There's a big difference between filing a lawsuit and getting paid—debt collectors know this. Even if you're sued, the situation's not over yet.
When you're deep in debt, it's hard to get out. Creditors and debt collectors are going to do everything they can to collect. But if you take steps to deal with your debt and stick to the plan, you'll make progress.
Author Information
Written by
Gina Freeman has been covering personal finance topics for over 20 years. She loves helping consumers understand tough topics and make confident decisions. Her professional history includes mortgage lending, credit scoring, taxes, and bankruptcy. Gina has a BS in financial management from the University of Nevada.
Reviewed by
Kimberly is Achieve’s senior editor. She is a financial counselor accredited by the Association for Financial Counseling & Planning Education®, and a mortgage expert for The Motley Fool. She owns and manages a 350-writer content agency.
Frequently asked questions about getting sued while in a debt relief program
A collector's decision to sue depends on a few factors:
How much you owe: If a collector has one debt or several debts totaling more than $1,000, you're more likely to be sued.
How much it costs to file a lawsuit in your court system: It’s easier to sue for smaller amounts when court costs are low.
The size of the agency: Big national firms may be less likely to sue for lower amounts than small local companies.
The agency’s zeal. A debt collector called LVNV Funding accounted for an outsized share of the surge in debt lawsuit filings in 2024 and 2025, according to January Advisors.
Their ability to contact you: If the only way for them to communicate with you is via a lawsuit, they're more likely to file.
Their location: Out-of-state collectors are required to sue in your state, so they might be less likely to sue for small amounts.
Your resources: If you have real estate, a job with wages to garnish, or a good credit rating to protect—you're more likely to be sued.
The age of the debt: Newer debt is more likely to end up in court. Debts too old to be collected are less likely to spur lawsuits.
According to January Advisors, debt lawsuits have been on the rise since the pandemic.
Creditors don't have to work with debt relief firms. However, many are willing to settle the debt if they believe you can’t afford to pay the entire balance. They’d prefer to collect what they can rather than write off the entire balance.
Collection agencies and debt buyers are also often willing to negotiate debt if it means getting paid faster. Every time a creditor contacts you, it costs money. Collectors want to get what they can from you as soon as possible.
Besides, debt buyers may have paid as little as five cents on the dollar for your account. If they can settle quickly for a fraction of what you owe, it’s still a good day for them.
Some creditors have a policy against negotiating debt. So while it makes sense to hope for the best, you should understand that some collectors may not be willing to settle with you. In that case, you may still be able to negotiate a payment plan or other concessions.
Yes, negotiating a settlement is often still possible after a lawsuit has been filed. Creditors may still be willing to work out an agreement, especially if reaching one avoids the time and cost of continuing the case. Negotiating typically becomes harder once a judgment has been entered. It's best to respond to a lawsuit and address it as early as possible.
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