Being Sued for Credit Card Debt? Here's What You Need to Do
If you're being sued for credit card debt, do NOT ignore the lawsuit. You must file a response (called an 'answer') with the court before the deadline — usually 20-30 days. Ignoring it results in a default judgment, which lets the creditor garnish your wages or bank account. You have defenses and options even if you owe the money.
Why This Happens
- You've been served with a court summons and complaint about credit card debt
- A debt collector or original creditor has filed a lawsuit against you
- You received notice of a default judgment because you didn't respond in time
- You're worried about wage garnishment or bank account seizure
- You're not sure if the debt is actually yours or if the amount is correct
Understanding Your Situation
Being sued for credit card debt is scary, but it's more common than you think — and you have more power than you realize. The creditor or collector files a lawsuit, and you're served with a summons telling you to respond within a set number of days (usually 20-30, depending on your state). The most critical thing is to respond. About 70% of people sued for debt don't file an answer, which results in an automatic default judgment. With a judgment, the creditor can garnish up to 25% of your disposable wages, freeze your bank account, or place a lien on your property. By simply showing up and responding, you force the plaintiff to prove their case. Even if you owe the debt, you may have valid defenses. The statute of limitations may have expired. The collector may not be able to prove they own the debt. The amount may be wrong. Or you may be able to negotiate a settlement — many creditors will settle for less once they see you're going to fight rather than default.
What Can You Do Right Now?
Respond to every allegation in the complaint — admit, deny, or state you don't have enough information. Raise any defenses like expired statute of limitations, improper service, or lack of documentation. Many courts have fill-in-the-blank answer forms.
Many lawsuits are settled before they reach trial. Once you've filed an answer, contact the plaintiff's attorney and offer a lump sum or payment plan. Creditors often settle for 40-60% of the balance to avoid the cost and uncertainty of trial.
Many consumer debt attorneys offer free consultations. They can review the lawsuit, identify defenses, and represent you in court. Some work on contingency or flat fees. Legal aid organizations also help low-income individuals for free.
Filing bankruptcy triggers an 'automatic stay' that immediately halts all lawsuits, wage garnishments, and collection actions. If your total debt situation is unmanageable, this may be the most practical option.
If a debt buyer (not the original creditor) is suing you, demand they prove they own the debt with a complete chain of title. Many debt buyers can't produce this documentation, which can get the case dismissed.
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How to Improve Your Situation
- Read the summons carefully and note your deadline to respond (usually 20-30 days)
- File a written answer with the court before the deadline — don't miss it
- Request the plaintiff provide proof of the debt, chain of ownership, and accounting of the balance
- Contact a consumer debt attorney or legal aid organization for help
- Consider settlement or bankruptcy if the debt is valid and you can't pay
What to Avoid
- ❌ Never ignore a lawsuit — a default judgment gives the creditor maximum power over your finances
- ❌ Don't call the creditor's attorney to discuss the case without understanding your rights first
- ❌ Don't agree to a payment plan you can't afford just to make the lawsuit go away
Related Next Steps
Frequently Asked Questions
Can I go to jail for being sued for credit card debt?
No. Credit card debt is civil, not criminal. You cannot be jailed for owing money. However, you CAN be held in contempt of court if you ignore a court order related to the lawsuit (like failing to appear for a debtor's examination).
What if I was sued and didn't know about it?
If you received a default judgment without proper notice, you can file a motion to vacate the judgment. You'll need to show that you weren't properly served. This is time-sensitive, so contact an attorney as soon as you discover the judgment.
Can they garnish my wages if I'm sued for credit card debt?
Only after getting a court judgment. The maximum garnishment is usually 25% of your disposable income (after taxes). Some states allow less, and some income sources like Social Security are generally protected from garnishment.
What if the statute of limitations has expired?
If the statute of limitations on the debt has expired (varies by state, usually 3-6 years), this is an affirmative defense. You must raise it in your answer — the court won't check for you. If the debt is time-barred, the case should be dismissed.
Should I hire a lawyer if I'm sued for credit card debt?
It's highly recommended, especially for larger debts. Many consumer debt attorneys offer free consultations and affordable flat fees. If you can't afford a lawyer, contact your local legal aid society. At minimum, file an answer yourself — templates are available at most courthouse self-help centers.