If a credit card company sues you, you have the right to respond in court, and ignoring the lawsuit will almost certainly result in a judgment against you that lets them garnish wages or freeze bank accounts.
A lawsuit means the card issuer or a debt collector acting on their behalf has filed a claim in civil court. You will receive official papers — usually a summons and complaint — either by mail, in person, or by publication in a newspaper if they cannot locate you. The complaint states how much you owe, when the debt originated, and why they believe you are liable. You have a specific window to respond, typically 20 to 30 days depending on your state, and that important date is not negotiable.
The most dangerous mistake is doing nothing. If you do not respond by the important date, the court will issue a default judgment in the creditor's favor without hearing your side. Once they have a judgment, they can pursue wage garnishment, bank levies, or liens on property — and they do not need your permission. A response does not may provide you will win, but it is your only chance to contest the debt, raise a defense, or negotiate a settlement before the judgment becomes final.
Key Takeaways
- You must respond to the lawsuit within the important date stated on the summons, usually 20 to 30 days, or the court will enter a default judgment against you.
- Your response should be filed with the court and served on the creditor's attorney; filing it yourself costs little or nothing, but missing the important date is irreversible.
- Common defenses include the statute of limitations (the debt is too old to sue on), incorrect amount, mistaken identity, or that the creditor cannot prove you owe the debt.
- If you cannot afford an attorney, many legal aid organizations offer free or low-cost help, and some courts allow you to represent yourself in small claims or limited civil cases.
- Even after a judgment, you may be able to settle, negotiate a payment plan, or file a motion to vacate the judgment if you have a valid reason for missing the important date.
Understanding the lawsuit papers you receive
The summons tells you the court, the case number, the important date to respond, and where to file your response. The complaint is the creditor's written claim against you — it names you as the defendant, describes the debt, and explains why they believe you owe it. Read both documents carefully and note the exact important date. If the papers say you have 20 days to respond and you respond on day 21, your response will be rejected and you will be in default.
Some lawsuits are filed in small claims court, where the amount is usually under $5,000 to $10,000 (the limit varies by state) and you can represent yourself without an attorney. Others are filed in district court or civil court, where the process is more formal and an attorney is helpful but not always required. The court name and case number appear at the top of the summons. If you are unsure which court you are in, call the court clerk's office — they can tell you the rules for that specific court and what forms you need to file.
How to respond to the lawsuit
Your response is called an answer or a response, depending on your state. It must be filed with the court and a copy must be sent to the creditor's attorney. The answer admits or denies each claim in the complaint, raises any defenses you have, and can include a counterclaim if the creditor violated your rights. You do not need an attorney to file an answer — you can do it yourself — but you must follow your court's rules for formatting and filing.
Most courts have forms and instructions on their websites. Search "[your state] [your county] court answer form" or call the court clerk. If you cannot find forms, you can write your answer in plain language, numbered to match the complaint's allegations. For example, if the complaint says "On January 15, 2020, the defendant opened a credit card account," you can write "Admit" or "Deny" or "Lack knowledge to admit or deny." You must file the original with the court and mail or deliver a copy to the creditor's attorney — keep proof that you sent it.
File your response before the important date. If you miss the important date, you can ask the court to let you file late, but you will need a good reason — illness, military service, or attorney error are stronger reasons than straightforward forgetting. Courts are strict about important date, so do not rely on this option.
Defenses you can raise in your answer
The statute of limitations is the most common defense. Most credit card debts cannot be sued on after 3 to 6 years from the date you stopped making payments (the exact period varies by state). If the debt is older than your state's limit, you can raise this defense and the court should dismiss the case. Check your state's statute of limitations — search "[your state] statute of limitations credit card debt" — and compare it to the date the complaint says you last paid or the date you stopped paying.
Other defenses include: the creditor cannot prove you owe the debt (they must show the original account agreement, your signature, and a record of charges); the amount is wrong (they calculated interest or fees incorrectly); you are not the person who opened the account (mistaken identity or fraud); the creditor violated the Fair Debt Collection Practices Act or Fair Credit Reporting Act; or you already paid the debt. You can also raise a defense that the creditor sold the debt to a third party and no longer has the right to sue.
If you do not know whether you have a valid defense, a legal aid attorney can review the complaint and your records for free. Even if you think you owe the debt, raising defenses in your answer preserves your right to negotiate or challenge the creditor's proof at trial.
Finding legal help if you cannot afford an attorney
Legal aid organizations in your state offer free or low-cost help to people who meet income limits. Search "[your state] legal aid" or visit lawhelp.org to find the organization in your area. They can review the lawsuit, help you file an answer, and represent you in court if your case qualifies. Many also offer phone or video consultations, so you do not have to travel.
Some bar associations run pro bono programs where volunteer attorneys take cases for free. Search "[your state] bar association pro bono" to find programs in your area. If your case is in small claims court, you may be able to represent yourself without an attorney — small claims courts are designed for people without lawyers, and the judge will explain the process. However, the creditor's attorney will still be there, so having help is valuable if you can get it.
If you cannot find free help, some attorneys will take debt defense cases on a contingency basis (they are paid only if you win) or will negotiate a flat fee. Ask the attorney whether they have experience defending credit card lawsuits and what their fee is before you hire them.
What happens at trial or settlement
If you file an answer and the case goes to trial, the creditor must prove you owe the debt. They will present documents (the account agreement, billing statements, payment history) and may call a witness. You can cross-examine their witnesses and present your own evidence. The judge will decide whether you owe the debt and, if so, how much. If you win, the case is dismissed. If you lose, the judge will enter a judgment against you.
Many cases settle before trial. Once you have filed an answer, the creditor may offer to settle for less than the full amount owed. If you receive a settlement offer, review it carefully — make sure it specifies the amount you will pay, when you will pay it, and that the creditor will dismiss the case and not report the debt as unpaid after you settle. Get the settlement agreement in writing before you pay anything.
If you cannot afford to pay a settlement, you can propose a payment plan. Some creditors will accept monthly payments instead of a lump sum. Propose an amount you can actually pay each month — if you miss payments on a settlement, the creditor can go back to court and ask the judge to enforce it.
After a judgment is entered against you
If the court enters a judgment against you, the creditor can pursue collection actions. They can garnish your wages (take a portion of your paycheck), levy your bank account (freeze and withdraw funds), or place a lien on property you own. The amount they can garnish varies by state — some states allow up to 25 percent of your disposable income, while others allow less. Certain income is protected, such as Social Security, disability benefits, and child support.
You can file a motion to vacate the judgment if you have a valid reason for not responding to the lawsuit — for example, you did not receive the papers, you were in the military, or your attorney made a serious error. You must file this motion quickly, usually within 30 days of the judgment, and you must show the court that you have a defense to the underlying debt. This is a second chance, but it is not may provide.
If you cannot vacate the judgment, you can still negotiate with the creditor. Many will accept a settlement even after a judgment is entered. You can also ask the court about a payment plan or request that the creditor stop collection efforts while you work out a deal. Some states allow you to claim certain assets as exempt from garnishment — a primary residence, a vehicle, or tools of your trade — so the creditor cannot take them even with a judgment.
How to prevent lawsuits in the first place
If you are behind on credit card payments, contact the card issuer before they sue. Most will negotiate a hardship plan, a lower interest rate, or a settlement if you reach out early. Once a debt is sold to a collection agency, your options narrow — the original issuer no longer controls the account. If you receive a demand letter from a debt collector, respond in writing within 30 days and dispute the debt if you believe it is wrong. This does not stop them from suing, but it creates a record that you contested the claim.
If you are sued, do not ignore it. The cost of filing an answer is minimal compared to the cost of a judgment. Even if you believe you owe the debt, responding gives you a chance to negotiate before the judgment is final. Once a judgment is entered, your options shrink and the creditor's power to collect grows.
Frequently Asked Questions
What happens if I ignore the lawsuit?
The court will enter a default judgment against you, meaning the creditor wins without presenting any evidence. Once the judgment is final, they can garnish your wages, freeze your bank account, or place a lien on your property. A default judgment is very difficult to overturn, so ignoring the lawsuit is the worst option.
Can the creditor sue me if the debt is old?
It depends on your state's statute of limitations. Most states do not allow credit card lawsuits after 3 to 6 years from your last payment. If the debt is older than your state's limit, you can raise this as a defense and the court should dismiss the case. Check your state's specific limit before you respond.
Do I need an attorney to respond to the lawsuit?
No, you can represent yourself and file an answer without an attorney. However, an attorney or legal aid organization can help you identify defenses and navigate the court process. If you cannot afford an attorney, contact your state's legal aid organization — many offer free help to people who meet income limits.
What if I cannot pay the judgment?
You can negotiate a settlement or payment plan with the creditor, even after the judgment is entered. Some states allow you to claim certain assets as exempt from garnishment. You can also file a motion to vacate the judgment if you have a valid reason for not responding to the original lawsuit, though this must be done quickly.
Can I settle the debt before trial?
Yes. Once you file an answer, the creditor may offer to settle for less than the full amount. If you receive a settlement offer, get it in writing and make sure it specifies the payment amount, payment schedule, and that the creditor will dismiss the case. Do not pay anything until you have a signed agreement.