Surprises are fun, right? Well, what about a surprising summons and inside, a lawsuit filed by a debt collector from another state? Do you panic? Should you even be worried because they’re in another state, so they can’t sue you? Or can they? Some people think this is yet another scare tactic, so they don’t bother showing up at court hundreds of miles away.Is that a smart move?

Out-of-state lawsuits are more common than you realize.Debt buyers and national collection agencies often file lawsuits in their home states to catch debtors off guard but the problem is, a lot of people don’t understand their rights when it comes to jurisdiction and end up completely ignoring the lawsuit.

Big mistake.Keep reading to see why.

Jurisdiction and Out-of-State Debt Lawsuits

Jurisdiction is a court’s power to make legal decisions about you and without it, lawsuits can’t legally move forward.

When it comes to lawsuits, there are two types of jurisdictions: personal jurisdiction (the court has authority over you as an individual) and subject matter jurisdiction (relates to the type of case being handled).

Both have to exist for a creditor’s lawsuit to be valid.

Creditors can claim jurisdiction if you signed a contract agreeing to settle disputes in their state, used their services while there, or have significant ties like property or business dealings.But if you never lived, worked, or done business there, you might have the grounds to challenge it, in which case you can file a motion to dismiss for lack of jurisdiction.

Failing to properly challenge an out-of-state debt lawsuit, whether it’s from a collection agency or a business that’s suing you over a financial dispute (e.g., a nursing home suing you over unpaid bills), could result in wage garnishment, lien placement, blocked accounts, or seizure of assets.

Out-of-State Debt Lawsuit Example:

For example, if you live in LA and you’re facing a lawsuit filed by a creditor in Nashville, then the case would fall under Tennessee law.This would mean that you’ll need to find a lawyer licensed to practice in TN.And the same applies the other way around; You’re in Nashville and the debt collector is from Los Angeles, then you’ll need a lawyer licensed in California.

Local jurisdiction can affect everything from procedural rules to potential outcomes.

And having an attorney familiar with state-specific laws can be the determining factor in winning your case.

Steps to Take

The worst thing you can do is to ignore it, so let’s see how this should go.

1.Review It and Respond Fast

When you’re served with a lawsuit, what you’ll usually receive are a summons and a complaint.The summons notifies you that legal action has been filed against you and the complaint lays out the creditor’s claims.Read it all carefully and look for information about the court that filed the case and whether it has a legitimate claim to jurisdiction over you.

It’s extremely important to check the deadline for responding, which is usually only a few weeks.

If you don’t file an answer within that timeframe, the court can issue a default judgment against you.

2.Verify the Creditor’s Right to Sue

Before you start preparing a defense, make sure the creditor even has the right to bring the lawsuit.Debts are often sold to third-party collection agencies and sometimes, these companies don’t have the proper documents to prove ownership.

Under the FDCPA, you have the right to request a debt validation.This forces the collector to show evidence that they own the debt and that the amount claimed is accurate.

If they aren’t able to provide this information, they might have no legal standing to sue, which means the whole case could end up being dismissed.

3.Consider Filing a Motion to Dismiss

If you determine that the court has no jurisdiction over you (consult a lawyer first), you can file a motion to dismiss.This is a legal request in which you ask the court to throw out the case on the grounds that it has no authority to hear it.A successful motion means that the lawsuit can’t proceed.

Motions to dismiss require proper formatting and legal language/jargon, so you’ll need an attorney to help you with it.

They’re taught and trained to deal with these jurisdictional challenges, and they’ll draft and file the motion correctly.

4.Get Legal Help

Legal systems and debt collection vary depending on the state, which is why you absolutely must get a lawyer.This can be tricky because you might not know whether to get a lawyer that’s in your state or the creditor’s.

For example, let’s say you live in Dallas and a nursing home from Nashville is suing you for (as previously mentioned) unpaid bills, or you live in Dallas and your parent/grandparent is experiencing neglect or abuse in a Nashville nursing home.Where do you turn to for a lawyer – Dallas or Nashville?

Your local attorney will be able to help, sure.

But in this case, it’d be better to go with a Nashville nursing home lawyer because the case falls under Tennessee law, and only a lawyer licensed to practice there can represent you in that court.Not to mention that they’ll have a better understanding of the state’s court rules, debt collection laws, and procedural nuances.

5.Prepare for Possible Outcomes

Be prepared for however this may end.In some cases, a creditor might agree to a settlement and allow you to pay a reduced amount to avoid further legal action.

On the other hand, if you’re able to successfully challenge the lawsuit, it might be thrown out entirely.

But if the court rules against you, the creditor might get a judgment that lets them garnish your wages or take money directly from your bank account.

Conclusion

This whole shebang sounds like a legal nightmare, but it really doesn’t have to be if you play by the rules and stick to deadlines.Stay calm, act fast, and know your rights; those are the main things to remember.Jurisdiction is your first line of defense, so once you know that, you can work with an attorney to tip the scales back in your favor.

Just make sure not to ignore the lawsuit because that’s an invitation for a default judgment.