Being served with a debt-collection lawsuit can be frightening, particularly if you do not recognize the company suing you or cannot afford to pay the amount demanded. You may have defenses, settlement options, or other ways to address the debt. But those options can narrow quickly if you put the papers aside.

At Tomes Law Firm, our attorneys work as a team to review the lawsuit, investigate the alleged debt, and consider the client’s overall financial situation. We have experience defending New Jersey consumers against creditors and debt buyers. This article explains what happens after you are sued, how an attorney can help, and why acting before a judgment is entered is so important.

If a debt collector sues you in New Jersey, you have 35 days after you are served to file an answer. In a Special Civil Part case, an automatic default judgment can be entered on the date listed in the summons if you do not respond. Filing an answer protects your right to require the plaintiff to prove its case and gives you more leverage to defend the lawsuit, negotiate a settlement, or arrange a realistic payment plan.

If you received a New Jersey summons and complaint, do not wait until the 35-day deadline is close. Call Tomes Law Firm at 732-333-0681 so our attorneys can review the lawsuit and determine what must be done to protect you.

How do I know whether I have actually been sued?

Collection letters, emails, and telephone calls are not the same as a lawsuit. A lawsuit generally begins when you receive documents titled “Summons” and “Complaint.”

The papers should identify the court and county, the docket number, the company suing you, the amount allegedly owed, and the plaintiff’s attorney. Most importantly, the summons will state the date by which your answer must be filed.

Many New Jersey consumer debt lawsuits seeking $20,000 or less are filed in the Special Civil Part of the Superior Court. The fact that the court accepted the complaint for filing does not mean the court has decided that the collector is entitled to the money. It means a case has been opened and you now have an opportunity to respond.

Keep the summons, complaint, envelope, and anything else delivered with them. Write down when and how you received the papers. Service issues can sometimes provide grounds for challenging a default judgment, but avoiding or refusing the papers will not make the lawsuit disappear.

You have 35 days to file an answer

A defendant has 35 days after being served with a New Jersey summons and complaint to file an answer.

Calling the collection attorney, requesting account records, discussing a settlement, or making a payment does not stop or extend that deadline. Unless an answer is filed or an extension is properly obtained, the case will continue.

Filing an answer does not mean that you admit the debt. It is your formal response to the allegations and preserves your right to dispute the lawsuit.

Depending on the facts, there may be questions about whether the debt belongs to you, whether the balance is accurate, whether all payments and credits were applied, whether the lawsuit was filed on time, and whether the plaintiff actually owns the account.

Many people who call my office recognize the original credit-card account but do not recognize the company suing them. They assume that because the original account was theirs, there is no point in responding. That is not the correct analysis. The company named in the complaint still has to prove that it owns the account, that the amount it claims is accurate, and that its evidence can be admitted in court.

Consumer debts are frequently sold, sometimes more than once. A debt buyer may need evidence connecting the original creditor, any intermediate purchasers, and the company named as the plaintiff. It may also need records explaining the balance, interest, fees, payments, and credits.

A spreadsheet containing a name and balance does not necessarily answer all of those questions. These cases are fact-specific, which is why an answer should be based on the complaint and the available evidence rather than copied from a generic form.

What happens if I do not answer?

In a Special Civil Part debt-collection case, an automatic default judgment can be entered against you on the date listed in the summons if you do not file an answer.

The collector does not necessarily have to bring you into court for a trial first. You may not realize that a judgment was entered until the creditor begins trying to collect it.

After obtaining a judgment, the creditor may be able to freeze or levy funds in your bank accounts, garnish a portion of your wages, and place a lien against property. It can also serve an information subpoena requiring you to disclose your employment, income, bank accounts, and assets.

An information subpoena should not be ignored. A creditor can ask the court to compel compliance, and continued noncompliance may lead to additional court proceedings and sanctions.

There is an important practical difference between resolving a case before judgment and trying to resolve it afterward. Before judgment, the creditor still has to prove its case. Questions about ownership, the balance, the age of the debt, and the admissibility of the records may create leverage for a defense, settlement, affordable payment plan, or resolution through court-ordered mediation.

Once the creditor has a judgment, there may be little or no leverage left unless grounds exist to vacate a default judgment. The creditor already has an enforceable judgment and may be pursuing a bank levy, wage garnishment, or property lien. It therefore has less incentive to reduce the debt or agree to favorable terms.

That does not mean a judgment can never be resolved. It means that resolving it is usually more difficult and the available options may be less favorable.

Can an automatic default judgment be vacated?

A default judgment does not always mean the case is permanently over. A defendant may file a motion asking the court to vacate it.

To succeed, the defendant generally must demonstrate both due diligence and a valid defense.

Due diligence means acting promptly after learning about the judgment and providing a reasonable explanation for why an answer was not filed on time. Waiting after discovering the judgment can undermine the request to vacate it.

A valid defense means more than stating that you cannot afford to pay. The defense must address whether the plaintiff is legally entitled to the judgment. For example, the debt may belong to someone else, the claimed balance may be inaccurate, payments may not have been credited, or the account may have resulted from identity theft. Other possible defenses include prior payment or settlement, a bankruptcy discharge, expiration of the applicable limitations period, improper service, lack of proof that the plaintiff owns the account, or insufficient admissible evidence of the balance.

The motion should explain when and how the defendant learned about the judgment, why no timely answer was filed, what defense exists, and what evidence supports it. A proposed answer should also be prepared so the defendant is ready to defend the lawsuit if the judgment is vacated.

If the court vacates the judgment, it does not automatically dismiss the case. The lawsuit generally returns to the active docket. The defendant can then raise defenses, participate in mediation, negotiate, or proceed to trial.

Can an attorney help me settle or obtain a payment plan?

Defending a lawsuit does not always mean taking the case through trial. After reviewing the complaint and the plaintiff’s evidence, an attorney may recommend negotiating a resolution.

Depending on the circumstances, that resolution could include a reduced lump-sum settlement, an affordable payment plan, a reduction of interest or other charges, or additional time to obtain settlement funds.

The written agreement should clearly explain how much will be paid, when payments are due, whether the payment resolves the entire debt, and what will happen to the lawsuit. Simply beginning payments does not necessarily stop the case or prevent the creditor from obtaining a judgment.

The payment must also be realistic. Agreeing to a monthly amount you cannot maintain may only delay the problem. If you default under the agreement, the creditor may be able to obtain or enforce a judgment.

New Jersey courts may direct the parties to participate in mediation or another settlement process before trial. A neutral mediator helps the parties discuss a possible resolution but does not represent either side or provide legal advice.

An attorney can prepare you for mediation by evaluating the plaintiff’s evidence, identifying weaknesses in the case, determining a realistic settlement range, and explaining the risks of proceeding to trial. The attorney can also negotiate the amount and terms of a payment plan and make sure the final agreement addresses what will happen to the lawsuit.

Why shouldn’t I negotiate directly with the collector’s attorney?

You are permitted to speak with the collector’s attorney, but remember that the attorney represents the creditor. That attorney is not responsible for identifying your defenses, telling you that the plaintiff’s evidence may be insufficient, or deciding whether a proposed payment is affordable for you.

Anything you say may affect the case. Calling and admitting the debt, agreeing to an unaffordable payment, or providing financial information before the lawsuit has been reviewed could weaken your position.

Before admitting anything or agreeing to a settlement, it is wise to have someone evaluate the case from your side. An attorney representing you can determine what the collector must prove, identify available defenses, and advise whether defending, settling, or proposing a payment plan is the most practical approach.

What mistakes should I avoid?

One of the most common mistakes I see is waiting until only a few days remain before the answer is due. An attorney needs time to review the complaint, investigate the plaintiff, determine what evidence may be available, and prepare an appropriate response.

Another common mistake is assuming that requesting documents or speaking with the collector extends the deadline. It does not. Filing a generic answer can also create problems if it fails to identify important defenses.

After an answer is filed, continue reading every notice from the court. Do not miss mediation, a settlement conference, trial, or any other required appearance.

When you contact an attorney, have the summons, complaint, envelope, and any court notices available. Account statements, payment records, collection letters, prior settlement communications, credit reports, bankruptcy papers, and notices of a bank levy or wage garnishment may also be helpful.

Do not delay calling because you cannot locate every document. Missing paperwork can often be addressed. A missed answer deadline is more difficult to fix.

How can Tomes Law Firm help?

When you call Tomes Law Firm, we first determine the answer deadline and whether a default judgment has already been entered. We then review the complaint, service, age of the alleged debt, claimed balance, and the documents supporting the plaintiff’s ownership of the account.

Depending on what we find, we may file an answer, raise defenses, represent you in court-ordered mediation, negotiate a settlement or manageable payment plan, or seek to vacate a default judgment.

We also look beyond the immediate lawsuit. A debt lawsuit may be an isolated problem, or it may be one part of a larger financial situation involving several creditors, tax liabilities, business debts, or obligations the client cannot realistically repay. Our attorneys can help determine whether resolving this one case is sufficient or whether a broader debt-relief strategy should be considered.

Frequently asked questions

Can I call the collector instead of filing an answer?

No. A telephone call, document request, settlement discussion, or payment does not replace an answer or automatically extend the 35-day deadline.

What if I agree that I owe some of the money?

You may still have a dispute concerning the amount, interest, fees, ownership of the account, or the plaintiff’s evidence. An attorney can help determine whether defending, settling, or arranging a payment plan is the most practical approach.

What if the 35 days have already passed?

Call an attorney immediately. If an automatic default judgment was entered, it may be possible to ask the court to vacate it by demonstrating due diligence and a valid defense.

Can the collector freeze my bank account as soon as it files the lawsuit?

Filing the lawsuit alone does not generally permit a bank levy, wage garnishment, or judgment lien. The creditor ordinarily must obtain a judgment and follow the required enforcement procedures.

What if I cannot afford to pay the debt?

Your financial circumstances may affect settlement negotiations, payment-plan options, and whether a broader debt-relief strategy should be considered. Inability to pay, however, is not ordinarily a defense to whether the debt is legally owed.

What should I do now?

Do not wait until the answer deadline is approaching. The sooner an attorney reviews the case, the more options and leverage you may have.

At Tomes Law Firm, we help New Jersey consumers defend debt lawsuits, negotiate settlements and payment plans, participate in court-ordered mediation, and seek to vacate default judgments when the legal requirements are met.

If you received a summons and complaint, or recently discovered that a judgment was entered against you, call Tomes Law Firm at 732-333-0681 to schedule a consultation.