Debt Buyers purchase debt from credit card companies and banks in large chunks called “Portfolios”. Some debt buyers resell the debt to other debt buyers for a profit, and some debt buyers hire local collection attorneys throughout the US to sue the persons who allegedly owe the debt.

When a lawsuit is initiated, a document called a “Complaint” is created by the debt buyer’s attorney. The debt buyer is indicated as the “Plaintiff” on the complaint. The person allegedly owing the debt is called the “Defendant” on the complaint.

The complaint is then filed with the local court. The debt buyer’s attorney pays a filing fee with the court. The court issues a case number and the process begins.

A summons is also attached to the complaint which tells the defendant that they must either appear in court or file an answer (or both) by a specific date. If you fail to file a written answer or appear in court, then at the first court appearance date (the return date), the debt buyer obtains a default judgment.

Once the case is filed and a case number is assigned, the next step is for the debt buyer’s attorney to engage a process server to “serve” the defendant with the complaint. This step must be completed in order to provide the defendant with “notice” that a case has been filed against the defendant.

There are certain rules in each state that control how the defendant must be served and the time limits to serve a defendant. If the defendant can’t be served, then they case is dismissed. Serving a defendant does not always need to be accomplished by personally handing the complaint to the defendant. There are other valid ways to accomplish service. You should review your local process service rules to determine how a defendant can be served.

Once the defendant is served, then the court obtains “jurisdiction”, and you are now locked into the case. You must act or risk losing your right to defend.

When you are officially served, then you must begin the process of deciding how you are going to proceed with the case. You can defend yourself or settle the case with the debt buyer’s attorney.

The next article will discuss the decision process.