Receiving a lawsuit over a debt you do not believe you owe can be stressful and confusing. You may be wondering how the debt collector or creditor could have made a mistake, what will happen next, and whether you have any options for protecting yourself.
In Maryland, being sued for a debt does not automatically mean the person or company bringing the lawsuit is correct. Creditors and debt buyers must follow legal procedures and prove their claims in court. If the debt is inaccurate, does not belong to you, or cannot be properly verified, you may have defenses available.
At Holland Law Firm, we help individuals understand their rights when facing debt-related legal issues and work to ensure they are treated fairly throughout the process.
Why Might Someone Sue You for a Debt You Do Not Owe?
There are several reasons a person may receive a lawsuit for a debt they believe is not theirs. Some common situations include:
- Identity theft or fraudulent accounts opened using your information
- Mistakes in creditor records
- Debts that belong to another person with a similar name
- Incorrect account balances
- Debts that were already paid or resolved
- Lawsuits filed by companies that purchased old debts but have incomplete records
- Debts that are so old (generally more than three years old for most consumer debts in Maryland) that they are barred by the three-year Statute of Limitations.
Debt buyers often purchase large collections of accounts from original creditors, and the data may be transferred from one entity to the next. Because information may change hands multiple times, errors can sometimes occur.
Do Not Ignore a Debt Collection Lawsuit in Maryland
One of the most important steps after receiving a lawsuit is responding by the deadline listed in the court documents.
Ignoring the lawsuit does not make it disappear. If you fail to respond, the court may enter a default judgment against you. A judgment could allow the creditor to pursue collection methods such as wage garnishment or other remedies permitted under Maryland law.
Even if you believe the debt is not yours, you generally must raise your defenses through the legal process.
What Defenses May Be Available?
If you are sued for a debt you do not owe, there may be several possible defenses depending on the facts of your case.
For example, you may be able to argue that:
- The creditor has not proven you owe the debt
- The account was created through identity theft or fraud
- The amount claimed is incorrect
- The lawsuit was filed after the applicable statute of limitations expired
- You are not the person responsible for the account
The creditor has the burden of proving its claim. This may include showing that the debt belongs to you and providing documentation supporting the amount they are seeking.
Can You Sue a Company for Trying to Collect a Debt You Don’t Owe?
In some situations, you may have legal options if a creditor or debt collector engages in improper collection practices.
Federal and Maryland laws provide protections against certain unfair or deceptive debt collection actions. Depending on the circumstances, a person may have a claim if a debt collector uses false statements, attempts to collect a debt that is not owed, or violates applicable consumer protection laws.
The specific rights and remedies available will depend on who is attempting to collect the debt and what actions they took.
What Should You Do If You Receive a Lawsuit?
If you are sued for a debt you do not owe, consider taking these steps:
- Read the court documents carefully
- Do not ignore the lawsuit
- Gather records showing payments, account information, or disputes
- Check your credit reports for inaccurate accounts
- Keep copies of all communications with creditors or collectors
- Speak with an attorney about your legal options
Acting quickly can help you protect your rights and avoid unnecessary financial consequences.
Contact Holland Law Firm for Help With Debt Lawsuits
Being sued for a debt you do not owe can feel overwhelming, but you may have options for defending yourself. Creditors must follow the law and prove their claims before they can hold you responsible for a debt.
At Holland Law Firm, we help Maryland residents understand their rights when dealing with unfair or inaccurate debt collection efforts. If you are facing a lawsuit over a debt you believe is not yours, contact us today—legal guidance can help you understand your next steps and protect your interests.