Filing Your Answer
Once the default is vacated, you must file your answer within the deadline set by the court (often 10-20 days). Your answer should: respond to each allegation in the complaint (admit, deny, or state insufficient knowledge), list your affirmative defenses (statute of limitations, standing, etc.), and include any counterclaims (FDCPA violations if a debt collector filed the original suit).
The answer you attached to your motion to vacate is usually your starting point, but you may need to refine it based on additional research or attorney consultation.
Discovery Phase
After your answer is filed, both sides can conduct discovery -- the process of exchanging information. This is where debt buyer cases often fall apart. Request: the original signed credit agreement, complete payment history, the chain of assignment from original creditor to plaintiff, and the purchase agreement for the debt portfolio. Many debt buyers cannot produce these documents.
If the plaintiff can't produce adequate documentation through discovery, you can file a motion for summary judgment arguing they haven't met their burden of proof. Many debt collection cases are dismissed at this stage.
Settlement Opportunities
Once a case is reopened and the creditor faces actual litigation, settlement becomes much more attractive to them. Debt buyers who expected an easy default judgment may offer to settle for 20-50% of the claimed amount rather than spend money on litigation they might lose.
Before settling: calculate whether the debt is actually collectible. If you're judgment proof or the debt is near the statute of limitations, you may be better off litigating to a complete defense. Get any settlement in writing before paying anything, and ensure it states the matter is resolved in full.
If the Case Goes to Trial
Most debt collection cases that survive past the motion to vacate stage settle before trial. If yours goes to trial, the plaintiff must prove: 1. A valid debt exists (original agreement). 2. You are the debtor (identity). 3. They have standing to collect (chain of ownership). 4. The amount is correct (payment history). 5. The suit is timely (within the SOL).
If the plaintiff fails to prove any of these elements, you win. Consumer attorneys report that a significant percentage of debt buyers dismiss their cases rather than go to trial when the defendant is actively contesting. Check your bankruptcy eligibility as an alternative.
Frequently Asked Questions
What percentage of reopened cases end in the defendant's favor?
Exact statistics are hard to find, but consumer attorneys report that a large majority of debt buyer cases that are actively defended result in dismissal, favorable settlement, or defendant verdict. The key is active participation -- the same case that resulted in a default judgment often can't survive scrutiny.
Can the creditor appeal the court's decision to vacate?
Generally no. Decisions to vacate default judgments are within the trial court's discretion and are rarely appealed. The creditor still has the opportunity to prove their case on the merits, so they haven't lost anything by the vacating -- they just have to do more work.
Should I settle or fight after vacating?
It depends on your defenses. If the statute of limitations has expired or the plaintiff clearly lacks standing, fight -- you'll likely win. If the debt is valid and collectible, a settlement for less than the full amount may be the best practical outcome. Consult with a consumer attorney to evaluate your options.
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