If you’ve been served with court papers for a credit card debt lawsuit, you may be thinking:

• “I don’t have the money anyway.”
• “If I ignore it, maybe it goes away.”
• “I can’t afford a lawyer.”
• “What’s the worst that can happen?”

Ignoring a credit card debt lawsuit is one of the most common mistakes consumers make — and unfortunately, it often leads to the worst possible outcome.

Here’s what actually happens if you do nothing.

Ignoring a Debt Lawsuit Does Not Make It Go Away

When you are sued for credit card debt, the court does not automatically assume the creditor is wrong.

Instead, the legal system works like this:

• The creditor (or debt buyer) files a lawsuit.
• You are served with a summons and complaint.
• You have a limited time to respond.

If you don’t respond, the creditor can ask the court for a default judgment.

That default judgment can open the door to wage garnishment, bank levies, and property liens — depending on your state.

Step 1: The Creditor Gets a Default Judgment

A default judgment happens when you fail to file an Answer or otherwise respond to the lawsuit within the deadline.

Once a default judgment is entered:

• The creditor wins automatically
• You lose the right to defend yourself
• The court assumes the creditor’s allegations are true

This can happen even if:

• The debt amount is wrong
• The debt is too old (statute of limitations issue)
• The creditor lacks proper documentation
• The debt isn’t yours
• The creditor sued the wrong person

If you don’t respond, the court may never hear your side.

Step 2: The Creditor Can Begin Collection Efforts

Once the creditor has a judgment, they often have far more power to collect.

Depending on your state, that may include:

✔ Wage Garnishment

A creditor may be able to garnish a portion of your paycheck directly from your employer.

Many consumers don’t realize this can happen until their employer receives paperwork.

✔ Bank Account Levy (Frozen Accounts)

In some cases, the creditor can attempt to freeze your bank account and withdraw funds.

This is often the most shocking outcome because it can happen quickly and without warning.

✔ Property Liens

If you own real estate, the creditor may be able to place a lien on your home.

Even if they can’t force an immediate sale, a lien can:

• affect refinancing
• affect selling your home
• increase pressure to settle

✔ Post-Judgment Interest and Costs

Judgments can continue to grow due to:

• interest
• court costs
• attorney fees (in some cases)

That means the debt can become significantly larger over time.

Step 3: You Lose Negotiating Power

Many people believe ignoring the lawsuit will encourage the creditor to “give up.”

In reality, ignoring it often makes the creditor’s job easier.

Once they have a judgment:

• they don’t need to negotiate as much
• they have leverage
• they can pursue enforcement

In many cases, the best settlement opportunities happen before judgment is entered.

Step 4: You May Miss Legal Defenses That Could Have Helped You Win

Many credit card lawsuits are filed by debt buyers, not the original credit card company.

Some lawsuits can be successfully defended because the creditor cannot prove key elements, such as:

• proper ownership of the debt (chain of title)
• correct balance owed
• valid contract agreement
• accurate payment history
• proper documentation

But none of those defenses matter if you don’t file an Answer.

Even if the creditor has weak evidence, they can still win by default.

Can You Go to Jail for Ignoring a Credit Card Lawsuit?

No — you cannot be jailed for owing credit card debt.

Credit card debt is a civil matter, not criminal.

However, ignoring court paperwork can still create serious consequences, including wage garnishment and frozen bank accounts.

How Long Do You Have to Respond to a Credit Card Lawsuit?

The deadline depends on the state where the lawsuit was filed.

Many states require a response within:

• 20 days
• 21 days
• 30 days

Some states calculate the deadline from the date you were served, not the date on the paperwork.

Because deadlines are strict, it’s important to act immediately.

What Should You Do Instead of Ignoring It?

If you’ve been served, you generally have several options.

Option 1: File an Answer With the Court

Filing an Answer prevents a default judgment and forces the creditor to prove their case.

Even if you plan to settle, filing an Answer protects you and keeps the case from moving forward without you.

Option 2: Negotiate a Settlement

Many creditors or debt buyers will negotiate:

• lump sum settlements
• payment plans
• reduced payoff amounts

But you should be careful not to admit liability or agree to terms that harm you.

Option 3: Challenge the Lawsuit

Depending on the facts, it may be possible to challenge the case through:

• lack of documentation
• improper service
• statute of limitations issues
• identity mistakes
• incorrect balance claims

A consumer attorney can review the complaint and help determine whether the case can be defended or dismissed.

Option 4: Consider Bankruptcy (If Needed)

In some situations, bankruptcy may be a practical solution — especially if you have:

• multiple debts
• multiple lawsuits
• judgments already entered

Bankruptcy may stop collection actions through the automatic stay.

Can You Undo a Default Judgment?

Sometimes.

But it is difficult and depends on the state and circumstances.

Courts may require you to prove:

• you were not properly served
• you had a valid reason for missing the deadline
• you have a legitimate defense

Undoing a default judgment can be complicated and time-sensitive.

It is much easier to respond before judgment is entered.

Warning Signs You Should Not Ignore

If you received any of the following, you should take action immediately:

• Summons and complaint
• Court date notice
• Motion for default judgment
• Judgment paperwork
• Garnishment notice
• Bank levy notice

Even if you believe the debt is incorrect, you must respond through the legal process.

Frequently Asked Questions

What happens if I don’t show up to court for a debt lawsuit?

If you fail to appear, the creditor may still obtain a judgment against you, depending on the court process.

Will a debt collector drop the lawsuit if I ignore it?

Usually no. Ignoring the case makes it easier for them to win.

What if I can’t afford a lawyer?

Many consumer defense attorneys offer consultations and may be able to discuss affordable options. Some cases may involve defenses or counterclaims depending on how the debt was collected.

What if the debt is not mine?

You still must respond. If you do nothing, the court may enter judgment against you anyway.

The Bottom Line

Ignoring a credit card debt lawsuit is one of the worst moves you can make.

If you ignore it, the creditor may obtain a default judgment, which can lead to:

• wage garnishment
• frozen bank accounts
• liens against property
• increased interest and costs
• loss of legal defenses

Even if you don’t have the money to pay the debt, you still have legal rights — and responding to the lawsuit can protect you.

Need Help With a Credit Card Debt Lawsuit?

If you’ve been sued by a credit card company or debt buyer, speaking with a consumer attorney may help you understand your options, including:

• defending the lawsuit
• negotiating settlement
• challenging improper documentation
• stopping garnishment or collection efforts

The most important thing is to act quickly before a default judgment is entered.