Why am I being sued on a debt that is not mine?

Why am I being sued on a debt that is not mine?

A lawsuit is a very serious and frightening thing. It's even worse if you don't know why you are being sued. We have found that debt collectors will oftentimes “sue now and ask questions later.” Their response when they are informed that they are suing someone that does not owe the debt they are trying to collect varies from “prove it in court” (which is amazing since they have the burden in court to prove you owe the money) to just a simple “sorry, we'll dismiss it.”

Unfortunately, neither response can take away the embarrassment and worry over having to deal with being sued. Further, these lawsuits may end up on your credit report and take months or years to remove. All the while, they are damaging your credit and ability to borrow money, obtain insurance or potentially get a job.

There are several instances where you can be sued on a debt that is not yours. These include:

• A case of mistaken identity or a mixed file. This occurs where some part of your identity, such as, name or social security number closely matches someone else's and you end up being held responsible for their debts. In the industry, this is called a mixed file.
• Identity theft. Where someone has stolen your identity and opened several accounts, credit cards or even bought a home in your name. Once they default, you may be sued by the creditor or debt collector. (See our section on Identity Theft)
• You may have paid off the debt, but due to reporting errors they still show that you owe a balance.
• You may have cosigned on a loan, the other party failed to pay and now the creditor is seeking recovery from you.
• If you are divorced or are getting divorced, you spouse or ex-spouse may have opened accounts in your name.

If you fall under any of these categories, you may have legal defenses to the lawsuit filed against you. Please see our page on being sued for more details on how to respond. If you have been sued, you should contact an attorney so they can explain your legal rights.

However, it is vitally important to note that this won't go away by itself. Just because you may not owe the debt don't assume you will automatically win in court. You must answer the lawsuit and you must show up in court with the proper documentation to defeat the debt collector's claims that you owe the debt.