Opening your mail and seeing a court summons for credit card debt can be terrifying.
Your first reaction might be panic:
- Am I going to lose everything?
- Can they take my bank account?
- Will my wages be garnished?
- What happens next?
Take a breath.
Being sued for credit card debt is serious — but you have rights, and you have options. What you do next matters.
Step 1: Do NOT Ignore the Lawsuit
This is the biggest mistake people make.
If you ignore the complaint, the creditor (or debt buyer) can request a default judgment against you. Once a judgment is entered, they may be able to:
- Garnish wages (depending on your state)
- Levy bank accounts
- Place liens on property
- Accrue interest on the judgment
- Damage your credit further
Ignoring it does not make it go away — it makes it worse.
Step 2: Check the Deadline to Respond
When you’re served with a lawsuit, you typically have a limited number of days to file a formal written response with the court (often 20–30 days, depending on your state).
Missing that deadline can result in automatic judgment against you.
The clock usually starts running the day you are officially served — not when you open the envelope.
Step 3: Review the Complaint Carefully
Many credit card lawsuits are filed by third-party debt buyers — companies that purchased old accounts for pennies on the dollar.
Ask yourself:
- Is this actually my debt?
- Is the amount correct?
- Is the statute of limitations expired?
- Can they prove they own the debt?
- Do they have documentation showing how the balance was calculated?
You would be surprised how often creditors cannot fully prove their case.
Step 4: Understand That You May Have Defenses
Just because you’re being sued does not mean the creditor automatically wins.
Possible defenses may include:
- Lack of standing (they can’t prove they own the debt)
- Expired statute of limitations
- Improper service
- Incorrect balance
- Identity theft or fraud
- Violation of consumer protection laws
Debt collection cases are often based on incomplete or flawed documentation.
Step 5: Do Not Assume You Can’t Fight It
Many people believe:
“I owe it, so there’s nothing I can do.”
That’s not necessarily true.
Even if the debt is legitimate, you may still be able to:
- Negotiate a settlement
- Arrange structured payments
- Challenge fees and interest
- Force the creditor to prove its case
- Protect yourself from improper collection tactics
Creditors count on consumers feeling overwhelmed and giving up.
What Happens If They Get a Judgment?
If a creditor obtains a judgment, the consequences depend on state law.
In some states, wage garnishment is allowed. In others, wage garnishment for credit card debt is restricted or prohibited. Bank account levies may also be possible.
A judgment can last for years and may be renewable.
That’s why responding early is critical.
Should You Call the Creditor?
Be careful.
Anything you say can potentially be used against you. Before discussing settlement or payment arrangements, it’s wise to understand your legal position.
Never agree to anything over the phone without understanding the full terms in writing.
When Should You Speak to an Attorney?
Immediately.
The earlier you get legal advice, the more options you typically have.
An experienced consumer defense attorney can:
- File a proper response
- Raise legal defenses
- Demand proof of the debt
- Negotiate a favorable resolution
- Identify violations of the Fair Debt Collection Practices Act (FDCPA)
- Protect your wages and bank accounts
In some cases, consumers may even have counterclaims if the collector violated federal or state law.
The Most Important Thing: Act Quickly
A debt lawsuit is not something to ignore — but it is also not something you should panic about.
You have rights.
You have defenses.
You have options.
The worst thing you can do is nothing.
If you’ve been sued for credit card debt, get informed and take action right away. The sooner you respond, the more control you keep over the outcome.
