The lawsuit starts with a summons, not a phone call
When a credit card company sues you, you will be served with a summons and complaint — usually by a process server who arrives at your home or workplace, though some states allow service by certified mail. The summons tells you the court, the case number, and the important date to respond (typically 20 to 30 days depending on your state). The complaint lists what you allegedly owe, when the debt originated, and which card account it relates to. This is a formal court process, not a collection call or letter.
The company suing you is often not the original card issuer. It may be a debt buyer — a firm that purchased your account from the bank for pennies on the dollar — or a collection agency acting on behalf of the original creditor. The summons will name whoever is bringing the case. You need to know who is actually suing you because the debt buyer or agency must prove they own the right to collect, and many cannot.
Key Takeaways
- You have a specific important date (usually 20 to 30 days) to respond to the summons in writing, or the court may enter a default judgment against you without hearing your side.
- Debt buyers and collection agencies must prove they own the debt and that the amount is correct; many lawsuits fail because they cannot produce the original account documents.
- Ignoring the summons is the most expensive mistake you can make — a default judgment leads to wage garnishment, bank levies, and a judgment on your credit report for years.
- Your response does not have to be perfect or written by a lawyer, but it must be filed with the court and served on the plaintiff's attorney before the important date.
- Many cases settle, get dismissed, or are won by the defendant if the plaintiff cannot prove the debt — but only if you show up and contest it.
What the court documents actually say
The complaint will state a dollar amount, the original charge-off date, and the account number. Read it carefully. Debt buyers often sue on debts that are outside the statute of limitations — the legal time window during which a creditor can sue. In most states, this window is three to six years from the last payment or charge-off, depending on whether the debt is written as a contract or an open account. If the debt is older than your state's statute of limitations, you have a complete defense.
The complaint may also contain errors: a wrong account number, a balance that does not match your records, or a claim that you made a payment you actually made. These are not small mistakes — they are grounds to contest the case. Debt buyers frequently sue on incomplete or inaccurate information because they buy accounts in bulk and do not verify each one.
You will also receive a summons that explains your options. In some states, you can request a jury trial. In others, you can demand that the plaintiff prove the debt in person rather than by affidavit. Read the summons completely and note every important date it lists.
The response you must file with the court
You must file a written response with the court before the important date. This response is called an answer in most states. You do not need a lawyer to file one, though having one helps. Your answer should deny the allegations you dispute and raise any defenses you have — such as the statute of limitations, incorrect amount, or lack of proof that the plaintiff owns the debt.
The answer must be filed with the court clerk and a copy must be served on the plaintiff's attorney (usually by certified mail). Filing means physically delivering it to the courthouse or submitting it through the court's online system if one exists. Do not just mail it to the plaintiff's lawyer — the court must receive it. Check your state court's website or call the clerk's office to learn the exact filing method and any local rules about format.
If you cannot afford a lawyer, look for legal aid in your area. Many states have free legal clinics that help people respond to debt lawsuits. The National Consumer Law Center and local bar associations can point you to these resources. Some lawyers also work on contingency in debt defense cases, meaning they take payment only if you win.
What happens if you do not respond
If you miss the important date to file an answer, the court will enter a default judgment against you. This means the judge rules in the plaintiff's favor without hearing your side. A default judgment is enforceable when ready — the creditor can then garnish your wages, levy your bank account, or place a lien on your property, depending on your state's laws.
A judgment also appears on your credit report and stays there for seven years from the date it is entered. It damages your credit score significantly and makes it harder to borrow, rent housing, or get hired for jobs that check credit. Some employers and landlords will not work with someone who has an active judgment.
Even after a default judgment, you may be able to ask the court to set it aside if you have a good reason for missing the important date — such as illness, a move, or never receiving the summons. This is called a motion to vacate. The rules and important date for filing one vary by state, so contact the court clerk or a lawyer when ready if you missed the response important date.
Wage garnishment and bank levies after judgment
Once the creditor has a judgment, they can use it to take money directly from your paycheck or bank account. Wage garnishment typically allows the creditor to take 25 percent of your disposable income (what remains after taxes and mandatory deductions), though some states set lower limits. Your employer is required to comply with the garnishment order and will deduct the amount before paying you.
A bank levy freezes your account and allows the creditor to withdraw funds up to the judgment amount. The bank will notify you, but the freeze happens quickly. If you have direct deposit set up, the creditor can intercept those deposits. Some states protect a portion of your account (often $1,000 or more) from levy, but you have to claim that protection — it does not happen automatically.
Wage garnishment and levies continue until the judgment is paid in full or until the judgment expires. The expiration date varies by state — typically 10 to 20 years — but creditors can often renew the judgment before it expires, extending collection indefinitely.
Defending yourself in court or settling before trial
If you file an answer, the case moves into discovery — the phase where both sides exchange documents and information. You can request that the plaintiff produce the original account agreement, statements showing the charges, and proof that they own the debt. Many debt buyers cannot produce these documents, which weakens their case significantly.
You can also request that the plaintiff's witness appear in person to testify rather than submitting a written statement. This is called demanding live testimony, and it makes the case more expensive and difficult for the creditor. Some cases are dismissed at this stage because the plaintiff cannot meet their burden of proof.
Many cases settle before trial. The creditor may offer to reduce the judgment amount or accept a payment plan. If you settle, get the agreement in writing and make sure it specifies that the judgment will be dismissed or satisfied once you pay. Do not pay anything without a written settlement agreement first.
How long a judgment stays on your record
A judgment appears on your credit report for seven years from the date it is entered, the same as other negative items. However, the judgment itself is enforceable for longer — typically 10 to 20 years depending on your state, and often renewable. This means the creditor can continue collecting through garnishment and levies long after the credit reporting period ends.
You can ask the court to vacate or satisfy the judgment if you pay it in full or reach a settlement. Once satisfied, the judgment no longer appears as active on your credit report, though the record that it existed remains. Paying off a judgment does improve your credit score over time, but it does not erase the judgment from your history.
Some states allow you to file a motion to vacate a judgment if enough time has passed and you have a valid reason. The rules vary widely, so check with your state court or a lawyer about your specific situation.
Frequently Asked Questions
Can the credit card company sue me if the debt is old?
Yes, but only if the debt is within your state's statute of limitations — typically three to six years from the last payment or charge-off. If the debt is older, you have a complete defense. Raise this in your answer when ready, because many debt buyers sue on old debts and lose when the defendant contests it.
What if I cannot afford to hire a lawyer?
Contact your local legal aid office or a law school clinic — many offer free help with debt defense. Some consumer lawyers also work on contingency or for a flat fee. The National Consumer Law Center website lists resources by state. You can also file an answer yourself, though having legal help improves your chances.
Do I have to go to court in person?
That depends on your state and the type of case. Small claims court cases often require you to appear. Regular civil court cases may be decided on documents alone, or you may have the option to appear by phone or video. Check the summons and your state court's rules, or ask the court clerk.
What happens if I ignore the lawsuit?
The court will enter a default judgment against you, and the creditor can then garnish your wages, levy your bank account, or place a lien on your property. A judgment also damages your credit for seven years and makes it much harder to borrow or rent. Responding is always better than ignoring it.
Can I negotiate a payment plan instead of going to court?
You can try, but once you are sued, the creditor usually wants a court judgment. After judgment, you can negotiate a payment plan, but the creditor can still garnish your wages if you miss payments. It is better to negotiate before the lawsuit is filed, but settlement is still possible after.