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, usually delivered by a process server or certified mail. This is not a warning or a final notice. It means the company has filed a case in court and you are the defendant. The summons tells you the court, the case number, the deadline to respond, and what the company is asking the court to order you to pay.
The complaint itself lists the account number, the balance the company claims you owe, when the debt originated, and when you stopped paying. The company must prove it owns the debt or has the right to collect it — this is called standing. If the card was sold to a debt buyer, the buyer must show the chain of ownership. If the original card issuer is suing, they typically have standing automatically.
You have a specific window to respond — usually 20 to 30 days depending on your state and how you were served. Missing this deadline is serious. If you do not respond, the court can enter a default judgment against you, meaning the judge rules in the company's favor without hearing your side. A default judgment is harder to overturn than a judgment after a trial.
Key Takeaways
- A summons and complaint is a court document, not a collection letter, and requires a written response within 20 to 30 days or the company wins by default.
- The company must prove the debt is yours, that the balance is correct, and that they have the legal right to collect it — you can challenge any of these in your response.
- If you cannot afford an attorney, you may request a court-appointed lawyer or represent yourself; many courts have self-help centers for people without lawyers.
- A judgment allows the company to pursue wage garnishment, bank levies, or liens on property, depending on your state's laws and what you own.
- Even after a judgment, you have options: you can request a payment plan, claim exemptions that protect certain income or assets, or file for bankruptcy if the debt is part of a larger financial crisis.
How to respond to the summons
Your response is called an answer or a motion, depending on your state and what you want to challenge. An answer admits or denies each claim in the complaint. A motion asks the court to dismiss the case before trial — for example, if the company failed to serve you properly or if the debt is too old under your state's statute of limitations.
You must file your response with the court and send a copy to the company's attorney. Filing means delivering it to the courthouse in person, by mail, or through an online system if your court has one. Do not send it only to the company's lawyer — the court must receive it. Check your summons for the exact filing deadline and the court's address or website.
If you cannot afford a lawyer, ask the court clerk whether your county offers a self-help center or legal aid. Legal aid organizations provide free representation to people below a certain income threshold. If you do not may have access to for free help, you can represent yourself, though this is riskier than having an attorney. Some people hire a lawyer only for the response and then represent themselves at trial.
Common defenses include: the debt is outside the statute of limitations (the company waited too long to sue), the company cannot prove you owe the debt, the balance is wrong, you already paid it, or the company lacks standing because it does not own the debt. You do not have to prove these defenses in your answer — you only have to raise them. Proof comes later.
What happens between the response and trial
After you file your answer, the case enters discovery, a period where both sides exchange documents and information. The company must provide the original account agreement, statements showing the charges and payments, and proof that the debt was sold to them (if applicable). You can request this through written questions called interrogatories or a formal request for documents.
Many cases settle during discovery. Once the company has to produce its evidence, it may become clear that the debt is outside the statute of limitations, that the company cannot prove the balance, or that the chain of ownership is broken. At that point, the company may offer a settlement — a lower lump sum or a payment plan — rather than go to trial.
If the case does not settle, you and the company will attend a pretrial conference with the judge. This is a chance to discuss settlement one more time and to clarify what will happen at trial. The judge may push both sides toward a deal. If no deal is reached, a trial date is set.
The trial and the judgment
At trial, the company presents evidence that you owe the debt. This usually means testimony from a company representative and documents — the account agreement, statements, and proof of the debt sale. You can cross-examine the company's witnesses and present your own evidence or testimony. If you have a defense — for example, that the debt is outside the statute of limitations — this is when you prove it.
The judge (or jury, if you requested one) decides whether the company proved its case. If the judge rules in the company's favor, you receive a judgment. The judgment states the amount you owe, plus court costs and sometimes attorney fees (depending on your state and the card agreement). Interest may continue to accrue on the judgment until it is paid.
If you win, the case is dismissed and you owe nothing. The company can appeal, but appeals are expensive and rarely succeed unless there was a clear legal error at trial.
What the company can do after winning a judgment
A judgment is not the same as payment. It is a court order saying you owe the money. To actually collect, the company uses post-judgment remedies — tools that vary by state. The most common are wage garnishment, bank levies, and liens.
Wage garnishment means the court orders your employer to withhold a portion of your paycheck and send it to the company. The amount varies by state but is often 10 to 25 percent of your disposable income. Some income is protected — Social Security, disability, and unemployment benefits usually cannot be garnished.
Bank levies allow the company to freeze your bank account and take money directly. The company must know which bank you use and must follow state procedures to levy the account. Some funds are protected — for example, money in a joint account may have partial protection, and some states protect a certain amount of funds.
Liens are claims against your property. If you own a house or car, the company can place a lien on the title. You cannot sell the property without paying off the lien. Liens do not take the property immediately, but they create a debt that follows the property.
The company must follow state law to use these tools. Some states require a separate hearing before garnishment or levy. Others allow the company to act immediately after the judgment. Check your state's rules or ask a lawyer.
Protecting your income and assets after judgment
Most states have exemptions — rules that protect certain income and assets from collection. These vary widely. Some states protect a portion of wages, some protect retirement accounts, some protect a certain amount of home equity, and some protect vehicles up to a certain value.
To use an exemption, you typically file a claim of exemption with the court. This is a form stating which assets or income are protected under state law. The company can object, and the court decides. If you win, that income or asset is off-limits.
Exemptions are state-specific and change over time. Look up your state's exemption laws on the state court website or ask a legal aid attorney. Some states are generous — for example, Florida and Texas protect homestead property more broadly than other states. Others are more limited.
Bankruptcy as an alternative to judgment collection
If the credit card debt is part of a larger financial crisis — you have multiple debts, medical bills, or are facing foreclosure — bankruptcy may be an option. Filing for bankruptcy triggers an automatic stay, which stops most collection efforts immediately, including wage garnishment and bank levies. Pending lawsuits are paused.
In Chapter 7 bankruptcy, unsecured debts like credit cards are often discharged (erased). In Chapter 13, you enter a repayment plan over three to five years. Bankruptcy has serious long-term consequences for your credit and finances, but it can stop a judgment from being enforced and may eliminate the debt entirely.
Bankruptcy is complex and has filing fees and attorney costs. Consult a bankruptcy attorney or a legal aid office to understand whether it makes sense for your situation. Some attorneys offer free consultations.
Frequently Asked Questions
What if I ignore the summons?
The court will enter a default judgment against you. The company wins without proving anything. You then owe the full amount plus court costs and possibly attorney fees. A default judgment is harder to overturn than a judgment after trial, so ignoring the summons is the worst option.
Can the company sue me if the debt is old?
It depends on your state's statute of limitations. Most states have a limit of three to six years for credit card debt, but some are longer. If the company sues after the deadline, you can raise this as a defense in your answer. The company must still prove the debt is within the window, so check your state's rules.
What if the company cannot prove the debt is mine?
If the company cannot produce the original account agreement, statements, or proof that the debt was sold to them, you can challenge the debt at trial. The burden is on the company to prove you owe it. If they cannot, the judge may dismiss the case or rule in your favor.
Can I settle the judgment after the court rules?
Yes. Even after a judgment, you can negotiate a settlement with the company. Many companies will accept a lump sum payment lower than the judgment or agree to a payment plan. Put any settlement in writing and make sure it states that the judgment is satisfied once you pay.
Does a judgment ever go away?
Judgments have an expiration date, called a judgment lien period, which varies by state — usually 7 to 20 years. After that, the judgment expires and the company cannot enforce it. However, the company can often renew the judgment before it expires, extending the deadline. Check your state's rules for the expiration date and renewal process.