How to stop a collection lawsuit in Minnesota

The three ways to stop a Minnesota collection lawsuit are: (1) answer the complaint and contest the case; (2) negotiate a settlement; or (3) file bankruptcy. Read below to find out which option is best for you.

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Option 1

If you have a defense, answer the complaint and challenge the case.

The first way to stop a collection lawsuit is to answer the complaint and challenge the case. An answer is a written response to all of the allegations in the complaint. Your answer must be served on the creditor within 21 days of the day you received the complaint. If you don't answer within 21 days, you'll lose your chance to fight the case and the creditor will win automatically.

Who is answering the right option for?

Anyone who has a valid defense. But remember, answering the complaint isn't the end of the case--it's only the beginning. To contest the case, you'll still have to go through the court process and persuade the judge that you should win.

Option 2

If you can afford it, negotiate a settlement.

A second way to stop a collection lawsuit is to negotiate a settlement. The idea here is to get the creditor to stop the case in exchange for voluntarily paying a lesser amount to resolve the debt.

Who is debt settlement the right option for?

Anyone who can afford to pay a reasonable settlement and, for whatever reason, would rather not fight the case in court. One thing to keep in mind, though, is if you have other debts and no realistic way to settle all of them, this option probably isn’t the best choice for you.

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Option 3

If you have other debts, consider bankruptcy.

A third way to stop a collection lawsuit is to file bankruptcy. Bankruptcy immediately stops all collection activity--including a collection lawsuit. And unlike the other two options, bankruptcy also wipes out all of your other dischargeable debts.

Who is bankruptcy the right option for?

Anyone who has multiple debts. While you might be able to settle or win one collection case, chances are you’re not going to be able to resolve multiple cases unless you have a lot of money for settlement or to pay a lawyer to defend multiple cases.

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Free Minnesota Collection Lawsuit Toolkit

The Minnesota Collection Lawsuit Toolkit is a free resource that contains: 

  • step-by-step instructions for answering a collection lawsuit

  • a list of defenses that work

  • tips about how to settle a collection case

  • financial pitfalls to avoid if you're considering bankruptcy

Just fill in your name and email below and we'll deliver the free Toolkit to your inbox right away.