The lawsuit starts with a summons, not a phone call

When a credit card company sues you, you will receive a summons and complaint — a formal legal document delivered by a process server, sheriff's deputy, or certified mail. This is not a collection letter or a threat. It is the official start of a court case. The summons tells you the court, the case number, the amount claimed, and the important date to respond — usually 20 to 30 days depending on your state.

The complaint lists the card issuer's version of what you owe: the original account number, the date you opened it, the last payment you made, and the total balance they claim. It may also list interest, fees, and late charges they say accumulated. You will have a specific date by which you must file a written response with the court, called an answer. Missing this important date means the creditor can win by default without a trial.

The summons will name the court — usually a district court, civil court, or small claims court depending on the amount. It will also tell you whether you must appear in person or whether you can respond by mail or online. Some courts allow all responses by mail; others require you to show up.

Key Takeaways

  • A summons and complaint is a legal document, not a collection notice, and you must respond within the important date stated or the creditor wins automatically.
  • Your response, called an answer, should be filed with the court (not sent to the credit card company) and can dispute the debt, raise defenses, or both.
  • If you do not respond, the creditor obtains a judgment that allows them to garnish wages, freeze bank accounts, or place a lien on property.
  • Debt that is old, already discharged in bankruptcy, or not yours are common defenses, but you must raise them in writing before the trial.
  • Small claims court has lower filing fees and simpler rules, but the creditor can appeal to regular court if they lose.

What you must do within the important date

You have two choices: respond to the lawsuit or do nothing. Doing nothing is the worst option. If you miss the important date, the court will enter a default judgment against you — the creditor wins without proving anything, and you lose your right to defend yourself in court.

Your response, called an answer, must be filed with the court clerk's office, not mailed to the credit card company. The answer can do three things: admit the debt, deny it, or dispute specific parts of it. You can also raise affirmative defenses — legal reasons why the creditor should not win even if the debt is real. Common defenses include that the debt is too old under your state's statute of limitations, that you already paid it, that the amount is wrong, or that the creditor cannot prove they own the debt.

If you cannot afford a lawyer, you can file the answer yourself. Many courts have websites with templates or sample answers. Your state bar association or legal aid office can point you to free or low-cost help. Some courts have self-help centers that explain the process in plain language.

The statute of limitations defense

Every state sets a time limit — called the statute of limitations — for how long a creditor can sue you for credit card debt. This period varies by state, ranging from three to six years from the date of your last payment or last charge. If the lawsuit is filed after that important date passes, you have a strong defense.

The key date is your last payment or last activity on the account, not the date you opened it or the date the debt was charged off. If you made a payment two years ago and have not paid since, and your state's limit is four years, the creditor still has two years to sue. If they sue after that window closes, you can raise the statute of limitations as a defense in your answer.

This defense only works if you raise it in writing before trial. If you go to court and do not mention it, you may lose the right to use it. Some creditors count on people not knowing about this defense, so stating it clearly in your answer is important.

What happens if you lose or do not respond

If the court enters a judgment against you — either by default or after trial — the creditor has won the lawsuit. But the judgment is not the end. It is the beginning of debt collection through the court system. The creditor can now use the judgment to take money directly from your paycheck, freeze your bank account, or place a lien on your home or car.

Wage garnishment is the most common next step. The creditor files paperwork with your employer ordering them to withhold a portion of your paycheck and send it to the court. The amount varies by state but is often 10 to 25 percent of your disposable income. Your employer is required to comply, and you cannot be fired for a single garnishment.

A bank levy freezes money in your account. The creditor can order the bank to hold funds up to the judgment amount, and after a waiting period (usually 10 to 21 days), the bank sends that money to the creditor. A lien attaches the judgment to your home or car, meaning you cannot sell or refinance without paying off the debt first.

Defenses you can raise in your answer

Beyond the statute of limitations, you can dispute whether the debt is yours, whether the amount is correct, or whether the creditor has the legal right to collect it. If the account was fraudulently opened in your name, that is a defense. If you already paid the debt or had it discharged in bankruptcy, that is a defense. If the creditor cannot prove they own the debt — for example, if it was sold to a third party and they cannot produce the paperwork — that is also a defense.

Some defenses are technical: the creditor sued in the wrong court, served you improperly, or did not follow state law in how they filed the lawsuit. These defenses do not erase the debt, but they can delay the case or force the creditor to start over. Other defenses go to the heart of the case: the debt is not yours, or the amount is wrong.

You do not have to prove your defense in the answer itself — you just have to state it. At trial, the creditor must prove their case, and you can present evidence that supports your defense. If you have documentation (old statements, proof of payment, bankruptcy discharge papers, evidence the account was fraudulent), gather it now and bring it to court.

Small claims court versus regular court

Credit card companies often sue in small claims court when the amount is under a certain threshold — usually $5,000 to $10,000 depending on the state. Small claims court has simpler rules, lower filing fees, and faster timelines. You do not need a lawyer, and the process is designed for people to represent themselves.

The downside is that small claims court has limits. You cannot file a counterclaim for more than the small claims limit, and the judge's decision is final in most states — you cannot appeal. However, the creditor can appeal to regular court if they lose, which means they get a second chance with a different judge and more formal rules.

If the amount is large enough, the case may be filed in district court or civil court instead. These courts have stricter rules, higher costs, and longer timelines, but they also allow appeals and counterclaims. If you are sued in regular court, finding a lawyer becomes more important because the process is more complex.

What to do if you cannot afford to pay

If you lose the lawsuit and cannot pay the judgment, the creditor can still pursue collection through garnishment, levies, and liens. However, some income and assets are protected by law. Social Security benefits, disability payments, and certain retirement accounts cannot be garnished in most states. Your primary residence may have some protection under homestead exemptions, which vary by state.

You can ask the court for a payment plan after judgment. This is called a stipulation or settlement agreement. The creditor does not have to agree, but many will negotiate rather than go through the expense of garnishment. If you reach an agreement, get it in writing and signed by both parties and the judge.

If your financial situation changes — you lose your job, face a medical emergency, or declare bankruptcy — you can ask the court to modify the judgment or payment plan. Bankruptcy stops all collection activity when ready, though credit card debt is usually unsecured and treated differently than other debts.

How to find legal help

If you cannot afford a lawyer, contact your state bar association's lawyer referral service or search for legal aid organizations in your area. Many offer free consultations. Some lawyers work on contingency for counterclaims (if you have one), meaning they take a percentage of what you win rather than an upfront fee.

Your local court may have a self-help center or court navigator who can explain the process and help you file documents. Some courts offer free legal clinics on certain days. Call the court clerk's office and ask what resources are available.

Online legal document services can help you draft an answer for a flat fee, usually $50 to $200. These are not lawyers, but they can help you fill out the forms correctly and file them on time. Do not ignore the summons or assume you cannot afford to respond — responding yourself costs nothing but your time.

Frequently Asked Questions

Can the credit card company sue me if the debt is old?

Yes, they can sue, but if the debt is older than your state's statute of limitations (usually three to six years from your last payment), you have a strong defense. You must raise this defense in your written answer to the court — straightforward telling the judge at trial is often too late. The creditor can still file the lawsuit; you just have a legal reason to win.

What happens if I ignore the summons?

The court will enter a default judgment against you, meaning the creditor wins without proving anything. After that, they can garnish your wages, freeze your bank account, or place a lien on your property. Ignoring the summons is the most expensive mistake you can make — responding costs nothing but time.

Do I need a lawyer to respond to a credit card lawsuit?

No. You can file an answer yourself, especially in small claims court. Many courts provide templates and instructions online. However, if the amount is large, the case is complex, or you have a strong defense, a lawyer can improve your chances. Legal aid organizations offer free help if you cannot afford one.

Can the credit card company garnish my Social Security?

No, not in most cases. Social Security benefits are protected from garnishment by federal law. However, if you receive other income (wages, disability, retirement), that can be garnished. The creditor must follow state law about how much they can take — usually 10 to 25 percent of your disposable income.

What if the credit card company cannot prove they own the debt?

That is a valid defense. If the debt was sold to a third party and the creditor suing you cannot produce the paperwork showing they own it, you can raise this in your answer. At trial, the creditor must prove they have the legal right to collect. If they cannot, you may win even if the original debt was real.