Debt collection lawsuits surging in Utah

SALT LAKE CITY — Getting a nasty letter from a debt collector is one thing. Getting sued by one is a whole other level of trouble.

New data shows it's happening more often.

Utah state court records show more than 76,006 debt collection lawsuits filed in Utah in 2025. That's 23% more than in 2019. And 2026 is on pace to break that number, with 80,501 already filed this year. You have to go back to 2011 to find a year where more Utahns were sued over debt than are being sued now.

"A lot of households are really only now hitting the breaking point," said Ted Rossman with nonprofit Money Management International.

Rossman blames rising living costs, debt and depleted savings. But he says collectors may also be getting more aggressive.

Under Utah law, medical debt can be considered a family expense. That means if your spouse dies owing medical bills, collectors may legally come after you for the money, even if your name was never on the bill.

That is the case in every state and, as Get Gephardt has reported, legislative bills have been proposed that would change the law — but those bills have not passed.

"If you hear from a debt collector, the first thing you should do is verify that this is in fact, legitimate debt that belongs to you," Rossman said.

Don't wait until you're sued to seek help, Rossman said. Nonprofit credit counselors may be able to negotiate lower interest rates and manageable payments.

The best time to deal with a debt lawsuit is before there is one, he said.

In most Utah debt lawsuits, the person being sued has 21 days after being served in-state to file an answer.