You will receive official court papers before anything else happens
A credit card company cannot straightforward sue you in secret. Before a lawsuit moves forward, you must be served with a summons and complaint — official documents that tell you the company is suing, how much they claim you owe, and which court is handling the case. This service happens in person, by certified mail, or sometimes by publication in a newspaper if the company cannot locate you. You will have a specific important date — usually 20 to 30 days depending on your state — to respond to the court.
The summons will include the court's name, the case number, and the judge's name. Write these down when ready. The complaint will list the amount claimed, the account number, and the reason for the suit. Read both documents carefully, because your response must address what the company actually claims, not what you assume they are claiming.
If you throw away the papers or ignore them, the company can win by default — meaning the court will side with them without hearing your side. A default judgment is one of the hardest outcomes to undo later, so even if you think the debt is valid, you must respond.
Key Takeaways
- You must respond to the court within the important date on your summons, or the company wins automatically and can garnish your wages or bank account.
- Your response can be a straightforward denial, a request for proof the debt is yours, or a claim that the company broke the law in collecting it — you do not need a lawyer to file one.
- Many credit card lawsuits rest on incomplete records, so asking the company to prove the debt in court often leads to dismissal or settlement.
- If you lose, you can still negotiate a payment plan with the company rather than face wage garnishment or bank levies.
- Legal aid organizations and court self-help centers in your county offer free guidance on responding to lawsuits.
Understand what the company has to prove
The credit card company must show three things in court: that the account is yours, that you owe the amount claimed, and that they have the right to sue. Many companies cannot do all three cleanly, especially if the debt is old or the account has changed hands.
The company's proof usually comes from account statements, the original credit card agreement, and payment records. If they cannot produce the original signed agreement or a clear chain showing they own the debt (not just that they bought it from another company), the judge may dismiss the case. Ask yourself: Did you sign this card agreement? Do you recognize the charges? If the answer is no to either, you have a real defense.
Even if the debt is yours, the company may have waited too long to sue. Most states have a statute of limitations on debt collection lawsuits — typically three to six years from the last payment or charge, depending on your state and the type of debt. If the company is suing you after that window closes, the debt is no longer legally collectible through a lawsuit, and you can ask the court to dismiss the case on those grounds alone.
File a written response with the court by the important date
Your response is called an answer in most states. It does not have to be long or fancy. You can write it yourself, and you do not need a lawyer. The answer must reach the court and a copy must go to the company's lawyer before the important date on your summons — missing this important date is worse than losing the case.
In your answer, you can deny the claims, admit some and deny others, or say you do not have enough information to respond. You can also raise affirmative defenses — legal reasons why the company should not win even if the debt is real. Common defenses include: the statute of limitations has passed, the company broke debt collection laws, the amount is wrong, or the company cannot prove they own the debt.
Your county court's self-help center (usually part of the courthouse) has templates and staff who can walk you through filling out an answer at no cost. Search "[your county] court self-help center" online, or call the courthouse clerk's office and ask where to find it. Many courts also have the forms on their websites under "civil court" or "small claims" sections.
Request proof the debt is actually yours
Once you file your answer, you can ask the company for documents — a process called discovery. The most useful request is a demand for the original signed credit card agreement and a complete account history showing every charge and payment. If the company cannot produce these, the judge will often dismiss the case or rule in your favor.
Write a straightforward letter to the company's lawyer (the address will be on the summons) asking them to send you copies of: the original signed agreement, all statements from the account, proof of the last payment you made, and proof that they own the debt (not just that they bought it). Give them 30 days to respond. If they do not, tell the judge at your court hearing that they refused to provide evidence.
Many companies settle or drop the case rather than produce these documents, because the records are old, incomplete, or stored in a way that is expensive to retrieve. Even if they do produce them, you will have time to review them and spot errors — wrong amounts, charges you do not recognize, or proof that you already paid part of the debt.
Know what happens if you lose the case
If the judge rules against you, the company gets a judgment — a court order saying you owe the debt. This is not the end of your options. The company can then try to collect through wage garnishment (taking money from your paycheck), bank levies (freezing and taking money from your bank account), or liens (claiming a right to your property). But most states protect a portion of your wages and bank accounts from garnishment, and some debts cannot be garnished at all.
Before the company takes any of these steps, you can ask the court for a payment plan. Many judges will order the company to accept installments instead of a lump sum, especially if you show you cannot pay the full amount at once. This keeps your wages and bank account safe and gives you time to pay without the debt growing larger.
A judgment also stays on your credit report for seven years and can affect your ability to borrow in the future. But it does not mean the company can take your home (unless it is a mortgage or home equity loan), your car (unless it is a car loan), or your retirement accounts — those are protected by law.
Find free legal help in your area
If you cannot afford a lawyer, your county has free resources. Call 211 (a national helpline) and ask for legal aid organizations near you. Most legal aid groups handle debt lawsuits and will either represent you or walk you through the process yourself. may be able to access is based on income, and many serve people earning up to 125% to 200% of the federal poverty line.
Your state bar association also maintains a list of lawyers who take cases for free or reduced fees. Search "[your state] bar association" and look for "pro bono" or "legal services". Some offer a free 30-minute consultation, which is enough time to understand your options and whether you have a strong defense.
Court self-help centers are free and do not have income limits. Staff there cannot give you legal information, but they can explain the process, help you fill out forms, and tell you what to expect at your hearing. Call your courthouse and ask for the self-help center or civil court clerk's office.
Negotiate a settlement before or after judgment
At any point — before the hearing, after you lose, or even years later — you can contact the company and offer to settle for less than the full amount. Many companies will accept 40% to 60% of the debt if you can pay in a lump sum or agree to a short payment plan. Get any settlement in writing before you pay, and make sure the agreement says the company will not pursue further collection or report the settled debt to credit bureaus.
If you have already lost the case and a judgment exists, settling does not erase it from your record, but it does stop the company from garnishing your wages or levying your bank account. The judgment will still appear on your credit report, but at least the debt will be resolved.
Do not ignore calls or letters from the company's lawyer during this time. Respond in writing (keep copies) and propose a settlement amount you can actually afford. Companies are often willing to negotiate because collecting through the court system is slow and expensive.
Frequently Asked Questions
What happens if I do not respond to the summons?
The company wins by default, and the judge will order you to pay the full amount plus court costs and the company's lawyer fees. A default judgment is extremely hard to undo, even if you have a good defense. You must file an answer before the important date, even if you think the debt is valid.
Can the credit card company garnish my wages without a judgment?
No. The company must sue you, win the case, and get a judgment before they can garnish your wages. Once they have a judgment, they can ask the court to order your employer to send part of your paycheck to them. Most states protect a portion of your wages — usually 75% — from garnishment.
Does settling a lawsuit remove the judgment from my credit report?
Settling stops the company from collecting further, but the judgment itself stays on your credit report for seven years. You can ask the company to file a "satisfaction of judgment" with the court, which tells future lenders the debt is resolved, but the judgment record remains public.
What if the credit card company cannot find me to serve the summons?
The company can ask the court to serve you by publication — posting the summons in a newspaper or online. You may not see this notice, so if you have not heard from a credit card company in a while and suspect you might owe them, search your name plus "lawsuit" online or call your county courthouse to ask if any cases are filed against you.
Can I represent myself in court, or do I need a lawyer?
You can represent yourself, and many people do in debt lawsuits. You do not need a lawyer to file an answer or appear at a hearing. However, a lawyer or legal aid organization can strengthen your case by spotting defenses you might miss and cross-examining the company's witnesses. If you cannot afford a lawyer, contact your local legal aid office.