Debt Collection/Serving Papers

You should file an answer with the court explaining that you were not served properly. Check the court's website to see if there is a form you can use to file your answer.

You should also appear on your court date and explain that you were not served properly.

In many jurisdictions, a Plaintiff can get a default judgment against you if you do not appear in court.

It is not possible to say from the information given whether you stand a good chance of winning if you do appear in court.

If the Plaintiff gets a judgment against you, it can often garnish wages and / or bank accounts and seize other assets to pay the judgment. The Plaintiff's options for collection will depend on the laws in your state, however.

Disclaimer: I am not licensed in your state. The above is general information only and not legal advice.

This doesn't answer your question, but given your circumstances, you might want to consider bankruptcy.

As for the service issue, in theory, if you were improperly served, you don't have to appear and no judgment can be had against you until you are properly served. HOWEVER, as a practical matter, the creditors' attorney and judge might not notice you were improperly served and if you do show up, you may be pressured into accepting service and/or waive service.

The safest course of action would be to file a motion to quash the service noticed before the court date. Be advised, though, that service issues are almost never (except in extreme circumstances) fatal defects, and you're essentially just buying some time before you have to deal with the suit.