You have a legal right to respond, and the company must prove its case in court
When a credit card company sues you, you will receive official court papers — usually a summons and complaint delivered by a process server or certified mail. This is not a threat or a collection letter; it is the start of a real lawsuit. You have a specific window to respond, usually 20 to 30 days depending on your state, and ignoring the papers means the company wins by default without proving anything.
The company must show that you owe the debt, that the amount is correct, and that they have the legal right to collect it. Many lawsuits fail because the company cannot produce the original contract or a clear chain of ownership if the debt was sold. Your response — called an answer or a motion — is your chance to challenge their proof or raise defenses that might reduce what you owe or stop the case entirely.
Key Takeaways
- Do not ignore the court papers; you have 20 to 30 days to respond in writing, and missing this important date means the company wins automatically.
- Your response should deny the claims you dispute and raise any defenses you have, such as the company's failure to prove ownership of the debt or that the statute of limitations has passed.
- Request the company's proof of the debt — called discovery — before trial; many cases settle or collapse when the company cannot produce the original contract.
- Small claims court has a lower dollar limit (usually $5,000 to $25,000 depending on your state) and simpler rules, so confirm which court is hearing your case.
- A judgment against you can lead to wage garnishment or bank account levies, so even if you lose, you may have options to reduce or delay payment.
Understand what the court papers actually say
The summons tells you the court, the case number, the important date to respond, and which judge is assigned. The complaint lists the company's claims — usually that you opened an account, failed to pay, and owe a specific amount. Read both documents carefully and keep them in a safe place; you will need the case number and court information for every step that follows.
Check whether the lawsuit is in small claims court or civil court. Small claims court handles cases under a certain dollar amount (usually $5,000 to $25,000, varying by state) and has simpler rules and lower filing fees. Civil court handles larger amounts and gives you more discovery rights — the ability to demand the company's evidence before trial. The court name and case number appear at the top of the summons.
File a written response before the important date
Your response must be filed with the court and served on the company's lawyer. In most states, you can file an answer — a document that responds to each claim in the complaint — or a motion to dismiss, which argues that the company has not stated a valid legal claim or lacks the right to sue. An answer typically denies the claims you dispute and raises affirmative defenses, which are legal reasons why you should not have to pay even if the facts are true.
Common defenses include: the statute of limitations has passed (the company waited too long to sue), the company cannot prove it owns the debt (especially if it was sold multiple times), the amount is wrong, or you already paid. You do not have to prove these defenses at this stage — you only have to state them. If you cannot afford a lawyer, ask the court clerk whether your state has a legal aid office; many offer free or low-cost help with debt lawsuits.
If you miss the important date, you can sometimes file a late response and ask the judge to excuse the delay, but this is harder and less certain. Do not rely on this option. File your response on time, even if you are not sure it is perfect.
Request the company's proof of the debt
After you file your response, you have the right to discovery — the process of demanding evidence from the other side. In civil court, send a written request for production of documents asking for the original credit card agreement, statements showing the charges you dispute, proof that the company owns the debt (or that it was properly transferred from the original creditor), and any payments you made. In small claims court, discovery is more limited, but you can still ask the judge to order the company to bring documents to trial.
Many credit card lawsuits collapse at this stage because the company cannot produce the original contract or a clear paper trail showing who owns the debt. Debt is often sold to collection agencies or debt buyers, and if the chain of ownership is broken or unclear, the company may not have the legal right to collect. Request this proof in writing and keep copies of everything you send.
Prepare for settlement or trial
Once the company has responded to your discovery requests, you may have a better sense of whether they can actually prove their case. Many cases settle before trial because the company realizes its proof is weak or because you and the company reach an agreement on a lower amount or a payment plan. If the company offers to settle, get any agreement in writing before you pay anything.
If the case goes to trial, bring all your evidence: statements, payment records, correspondence with the company, and any documents showing you already paid or that the debt is not yours. In small claims court, you present your case yourself; in civil court, a lawyer is helpful but not required. The judge will decide whether the company proved its case and, if so, how much you owe.
Understand what happens if you lose
If the judge rules against you, the company receives a judgment — a court order saying you owe the debt. This judgment can be used to garnish your wages (take money directly from your paycheck) or levy your bank account (freeze and withdraw funds). However, a judgment is not the end of your options. Many states allow you to file a motion to reduce the judgment, request a payment plan, or claim that certain income or assets are protected from collection.
Wage garnishment and bank levies have limits. Federal law caps wage garnishment at 25% of your disposable income (what is left after taxes and mandatory deductions), and some states set lower limits. Certain income — such as Social Security, disability benefits, and unemployment — is protected from garnishment in most states. If the company tries to collect from protected funds, you can file a motion to stop it.
Know your options if you cannot afford a lawyer
Legal aid offices in your state offer free or low-cost help with debt lawsuits. Search for "[your state] legal aid" or call 211 to find the office nearest you. Some offer phone consultations, document review, or full representation depending on your income. Law school clinics and nonprofit legal organizations also handle debt cases.
If you cannot find free help, consider hiring a lawyer for a limited scope — for example, just to review your answer before you file it or to represent you at trial. Some lawyers work on a flat fee for specific tasks rather than charging hourly. Ask the court clerk or your local bar association for referrals to lawyers who handle debt defense.
Frequently Asked Questions
What happens if I do not respond to the court papers?
If you do not file a response by the important date, the company wins by default. The judge will enter a judgment against you without hearing your side. You may be able to file a late response and ask the judge to set aside the default judgment, but this is difficult and uncertain. Always respond on time.
Can the company sue me if the debt is old?
Most states have a statute of limitations — a time limit for suing — that ranges from three to six years for credit card debt, depending on the state and the type of contract. If the company sues after this period, you can raise the statute of limitations as a defense. However, making a payment or acknowledging the debt in writing can restart the clock, so be careful what you say to collectors.
What is the difference between a judgment and a debt?
A debt is what you owe. A judgment is a court order that says you owe it and gives the company legal tools to collect, such as wage garnishment or bank levies. You can owe a debt without a judgment, but once the company has a judgment, collection becomes much harder to stop.
Can I settle the debt for less than I owe?
Yes. Many companies will settle for 40% to 60% of the balance if you offer a lump sum or agree to a payment plan. Get any settlement offer in writing before you pay. Ask whether the company will report the settlement to credit bureaus and whether it will stop collection efforts once you pay.
Will a judgment show up on my credit report?
Yes. A judgment is a public record and will appear on your credit report, damaging your credit score. It can stay on your report for seven years or longer depending on your state. Paying the judgment does not remove it when ready, but some states allow you to file a satisfaction of judgment once you pay, which updates your credit report.