Debt Collection Lawsuits in Minnesota
What to Do If You’ve Been Sued and When a Lawyer Can Help
If you’ve served with a debt collection summons and complaint in Minnesota, you are probably wondering what your options are and what you should do next.
The purpose of this page is to walk through the situation in plain English. I explain what a debt collection lawsuit actually means, what can happen if you ignore it, and what defenses may apply in your case. I also cover common arguments that do not typically succeed, how judgments and wage garnishment work, and when it makes sense to hire a lawyer as opposed to handling the matter on your own.
My goal is to help you understand the risks and the available options so you can act deliberately, not react under pressure later.
I Just Got Served. What Does This Mean?
A debt collection lawsuit usually begins when a creditor or debt buyer serves you with a Summons and Complaint. The lawsuit claims you owe a debt and asks the court to enter judgment against you.
In most Minnesota debt collection cases, you have 21 days to serve a written Answer after being served. Because of Minnesota’s quirky pocket-filing rules, that usually means serving the creditor first, not filing it with the court right away.
If you do nothing, the creditor can usually obtain a default judgment, almost always without a court hearing.
A default judgment gives the creditor powerful collection tools, even if the debt is incorrect or they could not have proven their case if you had properly challenged it.
What Happens If I Ignore the Lawsuit?
If you don’t file and serve an Answer on time, the creditor can ask the court to enter judgment by default. Once a judgment is entered, the creditor may be able to garnish your wages, wipe out your bank account, and record a lien against your home.
Courts are generally reluctant to undo default judgments later, even if you had valid defenses. I see people try to fix this after the garnishment starts, and by then the options are narrower.
What Is an “Answer,” and Why Does It Matter?
An Answer is a formal, written legal response to the lawsuit. It does more than say “I disagree.”
A proper Answer responds to each allegation in the Complaint and preserves all of your defenses. Calling the creditor, sending a letter, or explaining your situation does not count as an Answer. Unfortunately, many people find that out the hard way.
Do I Have Defenses to a Debt Collection Lawsuit?
Possibly. Many debt collection lawsuits, especially those brought by debt buyers, rely on incomplete records or thin documentation. In my experience, those cases are often defensible, but only if the issues are raised properly.
Common defenses in Minnesota include:
Statute of limitations (the lawsuit was filed too late)
Lack of proof that the plaintiff owns the debt
Incorrect balance claimed
Debt isn’t mine
Prior payment or settlement
Most defenses must be raised in your Answer. If they are not raised early, they may be lost.
Common Defenses That Usually Don’t Work
People often come into debt collection lawsuits with understandable assumptions about what should matter. Some of those ideas sound reasonable, and I understand why people think they should matter, but by themselves, they usually are not legal defenses in Minnesota.
Examples include:
“I can’t afford to pay the debt.”
Financial hardship alone does not defeat a debt collection lawsuit. Courts focus on whether the debt is legally owed, not ability to pay.“The lawsuit didn’t include proof.”
Creditors are not always required to attach full documentation at the start of a case. Missing paperwork may matter later, but it is not automatically a defense.“I never signed a contract.”
Many debts can be proven through account use, statements, or payment history, not just a signed agreement.“The debt is unfair” or “they’re a big company.”
Courts apply legal standards, not general fairness. These arguments usually don’t succeed on their own.
Can a Creditor Sue Me for an Old Debt?
In Minnesota, most consumer debts, including credit cards and medical bills, have a six-year statute of limitations.
If a lawsuit is filed after that deadline, you may be able to raise the statute of limitations as a defense. However, the court will not raise it for you. You must assert it in your Answer.
What Happens After I Serve an Answer?
Once you serve your Answer, the case can move in a few different directions. The creditor may reach out to discuss settlement. The parties may exchange documents or other information to evaluate the claims and defenses. In some cases, the creditor files motions, including a motion for summary judgment, asking the court to rule in its favor without a trial. And occasionally, the case proceeds all the way to trial.
Not every case goes that far. Most do not.
In many situations, simply filing a timely Answer changes the posture of the case. It signals that the lawsuit will not proceed by default, which often improves your leverage. Sometimes that leads to a reduced settlement. Sometimes it exposes proof problems that result in dismissal. Either way, the dynamic shifts once you put in your answer.
Judgments, Wage Garnishment, and Your Paycheck
If a creditor obtains a judgment, they may pursue collection through wage garnishment or bank account levies, subject to Minnesota limits.
Minnesota law protects certain income and limits how much of your wages can be garnished, but it’s still a major pain in the you-know-what.
Debt Lawsuits and Bankruptcy: When Each May Make Sense
For some people, defending a debt collection lawsuit makes sense, especially when there are valid defenses or leverage to negotiate.
For others, particularly those facing multiple lawsuits, wage garnishment, or overwhelming overall debt, bankruptcy may offer broader relief and a financial reset.
The right approach depends on your full financial picture, not just one lawsuit. Sometimes the lawsuit is the real issue. Sometimes it’s a symptom of something bigger. A huge part of my role is helping clients understand which option makes the most sense for them.
Do I Need a Lawyer for a Debt Collection Lawsuit?
Not every debt lawsuit requires a lawyer. Some people are able to handle straightforward cases on their own.
That said, legal help is often worthwhile in certain situations. If you are unsure how to draft a proper Answer, if the creditor is a debt buyer relying on limited documentation, or if you believe the debt is incorrect or outside the statute of limitations, getting advice early can make a meaningful difference. The same is true if motions have already been filed, a court date is approaching, or you simply want help evaluating settlement or broader options.
The goal is not always to fight for the sake of fighting. Often, it’s about protecting your rights, preserving leverage, and avoiding long-term financial damage that could have been prevented with the right approach at the outset.
How I Help Clients With Debt Collection Lawsuits
I represent Minnesota consumers in debt collection lawsuits involving credit cards, personal loans, medical bills, and other consumer debts.
Depending on the situation, my work may include preparing and filing an Answer, identifying and asserting defenses, and challenging improper proof offered by the creditor. In some cases, the focus is on negotiating a practical resolution. In others, it involves stepping back and evaluating whether bankruptcy or another broader option makes more sense given the client’s overall financial picture.
My focus is on practical outcomes. The goal is not unnecessary litigation, but a result that protects your rights and makes sense for your circumstances.
Ready to talk to a lawyer about your collection lawsuit?
Schedule a consult with debt defense lawyer Todd Murray.
Since 2009, Todd has helped hundreds of Minnesotans defend debt collection lawsuits. His work has saved his clients millions of dollars (and many sleepless nights) in the process. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.