What To Do When a Credit Card Company Takes You to Court
You have legal rights when a credit card company sues, and the first step is to respond to the court within the deadline they give you
When a credit card company sues you, they are asking a court to order you to pay money you owe. This is different from collection calls or letters — a lawsuit means the company has filed papers with an actual court and you have a specific number of days to respond. If you ignore the lawsuit, the court will likely rule in the company's favor by default, and they can then garnish your wages or freeze your bank account.
The most important thing you can do is respond to the court papers before the deadline. That deadline is usually printed on the summons — the document that tells you that you are being sued. It is typically 20 to 30 days from the date you receive the papers, though this varies by state. Missing this deadline is the single biggest mistake people make, because it removes your chance to defend yourself.
Key Takeaways
- You must respond to the court papers within the deadline printed on your summons, usually 20 to 30 days, or the company wins by default.
- Your response does not have to be fancy or written by a lawyer — you can file a simple written answer that denies the debt or explains your side.
- The credit card company has to prove you owe the money, and many lawsuits fail because the company cannot produce the original contract or account statements.
- You can ask the court to dismiss the case if the company sued in the wrong state, waited too long (past the statute of limitations), or cannot prove the debt is yours.
- If you cannot afford a lawyer, your local legal aid office or bar association can point you toward free or low-cost help.
Understanding what the court papers actually say
When you receive a summons and complaint, read them carefully. The summons tells you the deadline to respond and which court is handling the case. The complaint is the company's version of what you owe and why. It will usually say something like "Defendant owes $4,500 on a credit card account ending in 1234" and list the account number and the dates of the alleged debt.
The complaint does not have to be detailed or prove anything — it is just the company's claim. Your job is not to prove you do not owe the money at this stage. Your job is to respond and tell the court your side of the story. You might say "I dispute this debt," "I paid this account in full," or "I never opened this account." You can also raise legal defenses, like "The company waited too long to sue" or "They sued me in the wrong state."
Keep the court papers in a safe place and write down the deadline date somewhere you will see it. Many people lose track of the date and miss it by accident. If you have moved recently, check with the post office or the address on your credit card statement to make sure you know where the court papers went.
How to file your response with the court
You respond to a lawsuit by filing a document called an answer. This is a formal written response that tells the court whether you admit or deny each claim in the complaint. You do not need a lawyer to write an answer — you can write it yourself. It does not have to be long or use fancy legal language. Many courts have templates or sample answers on their websites that show you the format.
Your answer should go through each claim in the complaint and say whether you admit it, deny it, or say you do not have enough information to admit or deny it. For example, if the complaint says "On January 15, 2022, the defendant opened a credit card account," you might write "Defendant denies opening an account on that date" or "Defendant admits opening an account but disputes the amount owed." You can also add defenses — reasons the company should not win even if some of the facts are true.
Once you have written your answer, you file it with the court by the deadline. Most courts now let you file online through their website. Some still require you to print it, sign it, and mail it or deliver it in person. Call the court clerk's office and ask how to file. You will also need to send a copy to the credit card company's lawyer — this is called "serving" them. The court can tell you how to do this.
Common legal defenses the credit card company has to overcome
The credit card company has to prove several things to win: that you signed up for the account, that you owe the specific amount they claim, and that they have the right to sue you. If any of these things are weak, you have a defense.
Statute of limitations is one of the strongest defenses. Each state has a time limit for how long a credit card company can sue you after you stop paying. This is usually three to six years from the date you last made a payment or the date you stopped paying, depending on your state. If the company sued you after that deadline passed, you can ask the court to dismiss the case. You do not have to prove you do not owe the money — the company simply loses the right to sue.
Lack of proof is another defense. The company has to show the court the original contract you signed, account statements showing the charges, and proof that the debt is yours. Many older lawsuits fail because the company cannot find these documents — they may have been lost, destroyed, or sold to a debt buyer who never got the paperwork. If the company shows up in court without proof, you win.
Wrong defendant is a third defense. If the account belongs to someone else, or if you are being sued under a name you never used, tell the court. If the company sued you in the wrong state — for example, you live in Ohio but they sued you in Florida — you can ask the court to dismiss the case or move it to the right state.
What happens if you cannot pay the debt
If you owe the money and cannot pay it, you still have options. You can ask the court for a payment plan, called a "stipulated agreement" or "settlement agreement." This means you and the company agree on a lower amount or a monthly payment schedule, and the court approves it. If you reach an agreement, the company drops the lawsuit.
You can also ask the court about your income and expenses. Some states let you claim that you are "judgment proof" — meaning you have so little income or assets that even if the company wins, they cannot collect from you. This does not make the lawsuit go away, but it may reduce what they can take from you. Wages from certain jobs, like Social Security or unemployment benefits, cannot be garnished in most states, so if that is your only income, tell the court.
If you lose the lawsuit and the company gets a judgment against you, they can garnish your wages (take money directly from your paycheck) or freeze your bank account. The amount they can take varies by state. Some states protect a portion of your wages; others protect certain bank accounts. Understanding your state's rules helps you know what to expect.
Finding legal help if you need it
If you cannot afford a lawyer, contact your local legal aid office. Legal aid provides free legal help to people with low incomes. You can find your local office by searching "legal aid" plus your state name, or by calling 211 (a helpline that connects you to local services). Legal aid lawyers can review your case, help you write your answer, and represent you in court.
Your state bar association also has a lawyer referral service. Some lawyers offer free initial consultations, and some will take debt defense cases on a payment plan. Call your state bar and ask about low-cost or free options in your area.
If you cannot get a lawyer, many courts have self-help centers that can explain the process and help you fill out forms. The court clerk can tell you if your court has one. You can also look for sample answers and court forms on your state court's website.
What to expect after you file your response
After you file your answer, the case moves into the discovery phase. This is when both sides exchange documents and information. The credit card company will send you documents they say prove the debt. You can ask them questions about the account, the charges, and how they calculated the amount. This is your chance to find out whether they actually have proof.
Many cases settle during discovery because one side realizes they cannot win. If the company cannot find the original contract or account statements, they may offer to drop the case or settle for less. If you have a strong defense — like the statute of limitations has passed — the company may decide to dismiss the lawsuit rather than go to trial.
If the case does not settle, it will go to trial. At trial, the company presents their evidence and you present yours. The judge or jury decides whether you owe the money. If you win, the case is dismissed and you owe nothing. If you lose, the judge enters a judgment against you, and the company can then collect.
Frequently Asked Questions
What happens if I ignore the lawsuit?
If you do not respond by the deadline, the court will enter a default judgment against you. This means the company wins without having to prove anything. The company can then garnish your wages or freeze your bank account. Responding is always better than ignoring the lawsuit, even if you think you owe the money.
Can the credit card company sue me if the debt is old?
It depends on your state's statute of limitations. Most states allow credit card companies to sue within three to six years of your last payment. If the company sues after that deadline, you can ask the court to dismiss the case. Check your state's rules or ask a lawyer, because the deadline varies.
Do I have to go to court in person?
It depends on the court and the stage of the case. For filing your answer, you usually do not have to appear in person — you file by mail or online. If the case goes to trial, you may have to appear, though some courts allow you to appear by phone or video. Ask the court clerk what to expect.
What if I think the debt is not mine?
Write in your answer that you deny owing the debt and explain why — you never opened the account, the account belongs to someone else, or you do not recognize the charges. The company then has to prove the debt is yours. If they cannot, you win. Keep any documents that show the account is not yours.
Can I settle with the credit card company instead of going to court?
Yes. You can contact the company's lawyer and try to negotiate a settlement at any point, even after the lawsuit is filed. Many companies will accept less than the full amount owed if you can pay a lump sum or agree to a payment plan. Get any settlement agreement in writing before you pay.