The lawsuit begins with a summons and complaint
When a credit card company sues you, they start by filing papers with your local court. You will receive a summons — a document that tells you a lawsuit has been filed against you — and a complaint, which lists the amount they claim you owe and the reasons they say you owe it. These papers are usually delivered by a process server, sheriff's deputy, or certified mail, depending on your state and the court's rules.
The summons includes a deadline to respond, typically 20 to 30 days from the date you receive it. This deadline varies by state and by court. Missing this deadline is serious: if you do not respond, the credit card company can ask the court for a default judgment — a ruling in their favor without a hearing, simply because you did not show up.
The complaint itself usually contains basic facts: your name, the account number, the balance they say you owe, and when they say you stopped paying. It may also list the interest and fees they have added since the last payment. The card company does not always have to prove every detail at this stage — they only have to state enough to show the court that a case exists.
Key Takeaways
- A summons and complaint are served on you by mail or in person, and you have 20 to 30 days to respond in writing to the court, not to the credit card company.
- If you do not respond by the deadline, the court can enter a default judgment against you without a hearing, and the card company can then pursue wage garnishment or bank levies.
- Your response should deny what you can truthfully deny and raise any defenses you have, such as the debt being too old under your state's statute of limitations or the card company lacking proof of the original account.
- The card company must prove you owe the debt; if the account was sold to a debt buyer, that buyer must show they own the right to collect it, and many cannot produce the original contract.
- Even if you lose the case, you have options to manage the judgment, including payment plans, wage garnishment limits set by federal law, and in some states, exemptions that protect certain assets.
How to respond to the summons
Your response is called an answer, and it goes to the court, not to the credit card company's lawyer. You file it with the court clerk in the same courthouse where the lawsuit was filed. The deadline is strict: if your state gives you 30 days and you file on day 31, the court may reject it and treat it as a default.
In your answer, you admit or deny each claim in the complaint. If the complaint says you owe $5,000 and you do not dispute that number, you can admit it. If you dispute the amount, the interest calculation, or whether you owe anything at all, you deny it. You can also raise affirmative defenses — legal reasons why the card company should not win even if some of their facts are true. Common defenses include that the debt is older than your state's statute of limitations (usually 3 to 6 years, depending on the state), that the card company cannot prove they own the debt, or that they have already been paid.
If you cannot afford a lawyer, you can file the answer yourself. Many courts have self-help centers or websites that show you the form to use. Some legal aid organizations offer free help with debt lawsuits. Filing the answer yourself does not make you less likely to lose, but it does prevent a default judgment, which gives you a chance to present your side in court.
What happens during discovery and before trial
After you file your answer, both sides can request documents and information from each other in a process called discovery. You can ask the credit card company to send you the original contract, statements showing the charges and payments, and proof that they own the right to collect the debt. The card company can ask you for the same kinds of documents.
Many credit card lawsuits settle during this phase. If the card company cannot find the original contract or cannot prove the debt is yours, they may offer to drop the case or accept a lower payment. If you have a valid defense — such as the debt being time-barred — the card company's lawyer may realize they cannot win and propose a settlement.
If the case does not settle, it moves toward trial. In small claims court (which handles debts under a certain amount, usually $5,000 to $10,000 depending on the state), the trial is informal and you can represent yourself. In regular civil court, trials are more formal, and having a lawyer helps, though it is not required.
The judgment and what it means for your money
If the court rules against you, the card company receives a judgment — a court order saying you owe the debt. A judgment is not the same as a wage garnishment or bank levy; it is the legal foundation that allows the card company to pursue those collection methods.
With a judgment in hand, the card company can ask the court to garnish your wages, meaning the court orders your employer to send a portion of your paycheck to the card company. Federal law caps wage garnishment at 25% of your disposable income (the amount left after taxes and mandatory deductions), but some states allow less. A few states do not allow wage garnishment for credit card debt at all.
The card company can also ask for a bank levy, which freezes money in your bank account and transfers it to them. The amount they can take varies by state, but federal law protects a certain amount in your account (currently around $1,350, though this changes yearly) if you receive Social Security or other federal benefits.
A judgment also appears on your credit report and can affect your ability to borrow money. Judgments typically stay on your report for 7 years, though the judgment itself may be enforceable for longer — often 10 to 20 years depending on your state.
Defenses that can stop or reduce the judgment
The most common defense is that the debt is time-barred — meaning it is older than your state's statute of limitations. If you stopped paying a credit card in 2018 and your state's limit is 4 years, the card company cannot sue you in 2023. However, the clock resets if you make a payment or acknowledge the debt in writing, so be careful about what you say to a debt collector.
Another defense is that the card company cannot prove the debt is yours. If the account was sold to a debt buyer, that buyer must show they own the right to collect it. Many debt buyers cannot produce the original contract or a clear chain of ownership, and if they cannot, the court may dismiss the case.
You can also defend yourself if the card company has already been paid. If you made a payment that was not credited to your account, or if you settled the debt in writing, bring that proof to court. You can also raise defenses based on errors in the card company's calculation of interest or fees, though you will need to show the math yourself.
If the card company's lawyer does not show up for trial or fails to follow court rules, you can ask the judge to dismiss the case. This is rare, but it happens when a debt buyer or collection agency is disorganized.
Negotiating a settlement before or after judgment
At any point — before the lawsuit, during discovery, before trial, or even after a judgment — you can negotiate a settlement. The card company may accept less than the full amount owed, especially if they doubt they can collect or if the cost of pursuing the case is high.
If you settle before a judgment, get the agreement in writing and specify that the card company will not pursue the debt further. If you settle after a judgment, ask the card company to file a satisfaction of judgment with the court, which removes the judgment from the record. Without this, the judgment stays on your credit report even after you pay.
Payment plans are also an option. You can offer to pay the judgment in installments — for example, $200 per month for 24 months. The card company is not required to accept, but many will rather than pursue garnishment or levy, which are costly and time-consuming.
What happens if you ignore the judgment
Ignoring a judgment does not make it go away. The card company can use the judgment to garnish your wages, levy your bank account, or place a lien on your home (in some states). They can also ask the court to hold you in contempt if you have the ability to pay but refuse to do so, though this is rare for credit card debt.
In some states, the card company can also ask you to appear in court for a debtor's examination, where you are questioned under oath about your income, assets, and ability to pay. Refusing to appear can result in additional penalties.
The judgment can also be renewed. In most states, a judgment lasts 10 to 20 years, and the card company can renew it before it expires, extending the collection period. This means a judgment from 2015 could still be enforceable in 2035 if renewed.
Frequently Asked Questions
Can a credit card company sue me if I am on a payment plan?
If you have a written agreement with the card company for a payment plan and you are making the payments on time, they should not sue. However, if you miss a payment on the plan, they may treat it as a breach of the agreement and file suit. Always get the payment plan in writing and keep proof of your payments.
What is the difference between a debt buyer and the original card company?
A debt buyer is a company that purchases old debts from the card company for a fraction of the balance. Debt buyers often have weaker documentation than the original card company, which can work in your favor. If a debt buyer sues you, you can ask them to prove they own the debt and have the right to collect it — many cannot.
Can the credit card company take my house if they win the judgment?
In most states, a credit card company cannot place a lien on your home or force a sale to pay the judgment. However, some states allow judgment liens on real estate, so the judgment becomes a claim against your home that must be paid if you sell. Check your state's laws or ask a local legal aid organization.
What should I do if I receive a summons but the debt is not mine?
File an answer denying the claim and state that you are not the person who opened the account. Request that the card company prove the debt is yours. If the account was opened fraudulently, you may also file a police report and send the card company a written dispute. Do not ignore the summons, or you will lose by default.
Can I stop wage garnishment after the judgment?
You can ask the court to reduce or stop the garnishment if your financial situation has changed — for example, if you lost your job or have a medical emergency. You can also negotiate with the card company to accept a payment plan instead of garnishment. Some states also allow you to claim exemptions that protect a portion of your wages from garnishment.