CA filed a law suit before the 30 days Debt validation.

You mean the CA filed the lawsuit before you could send them the validation request, or is it like they filed the suit before they validated the debt with you? However, if the CA has not validated the debt, you can show this in the court, and request the judge to dismiss the judgment. Have you received the summons? If you have you can then mention about this in the answer to the summons itself. You can also consult a lawyer regarding this.

We received the Claim letter that states to dispute the debt within 30 days or they will assume the debt is valid. The date on the letter shows it was prepared on 06/30/2010 and sent via regular mail which means we probably received the letter around 5th of July or so (not sure the exact date).
On July 31th we were served and the filing date on the sermon is July 12th and says to answer within 20 days and we sent the validation letter on 08/02 to the lawyer. The debt is still within the SOL.
By the way the original creditor was citibank sears and the debt was sold three times already among collection agencies and the current CA is LVNV Fundings.
Have anyone dealt with this CA.
How should we proceed in this case?

You need to show up in court on the date or you will lose by default! You really should retain counsel in this as you are not familiar with the legal issues as they are! Better to pay your own attorney and win then to pay theirs and lose! Remember that Judges are lawyers and will often take the lawyers side unless the lawyer is totally unprepared! Very often a judge will accept validation in the courtroom and regard the hearing as a the only collection attempt after request for validation even if it is after the thirty day period! That is an old collectors trick to sue before validating and validate in court! Be prepared!

Fianally... I want to give an update and get some advice now. Just a brief status, I received the generic debt notice was served less than 15 days from the inception of the notice by the lawyer/Debt collector representing junk debt buyer.(they sent the letter and did not allow me 30 days to dispute the debt and then filed a complaint). I requested a DV still within 30 days and it's been more than a month now and no DV was sent to me. I answered the summons and the court date is set for Oct 6th. Is it possible for the CA to go out at this time an try to buy the proof of debt from the original creditor becasue I serously doubt they had it? Also can I raise their failure to comply with the 30 days window to dispute the debt as a violation of the law?. What do I do form here. I'm of course planning on showing up. Any advise on how to beat this shark LNVN Fundings would be greatly appreciated. As a side note LNVN is the third CA on the account so I'm not sure how they can get the proof of debt form the original creditor.

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