Sued for Credit Card Debt? Here’s What You Need to Do Now

Credit card companies can sue you when you stop making payments. If that happens, you need to act fast. You have rights and options that can protect you.

When debt collectors can’t reach you by phone or mail, they escalate to legal action. Getting served with a lawsuit feels overwhelming. But understanding the process empowers you to fight back effectively.

What Happens When You Get Sued for Credit Card Debt

You’ll receive two important documents: a summons and a complaint. The complaint tells you who’s suing you and why. The summons explains your deadline to respond.

Your response deadline depends on your state. Some states give you only 10 days. Others allow 21 or 30 days to file your answer.

Missing this deadline means automatic defeat. The court will enter a default judgment against you. The creditor wins without proving their case.

Responding to a lawsuit isn’t as hard as you think. Our partner Solo has helped over 280,000 people answer debt lawsuits. They offer a 100% money-back guarantee if courts reject your paperwork.

You can win this fight. Many people do when they show up and defend themselves properly.

How to Respond to a Credit Card Lawsuit

Take two critical steps immediately: request debt verification and file your answer.

Request Debt Verification First

Debt collectors buy and sell accounts constantly. Details get lost or distorted during transfers. Wrong amounts, incorrect dates, and missing documentation happen frequently.

Send a debt verification letter as soon as possible. Debt collectors must prove they own your debt and have accurate details.

The Fair Debt Collection Practices Act (FDCPA) protects you here. Collectors must send you a validation letter within five days of first contact. If they haven’t, request one immediately.

A proper validation letter must include:

• Your name and mailing address
• The debt collector’s name and address
• The original creditor’s name and your account number
• Current debt amount including interest and fees
• Notice of your right to dispute within 30 days
• A dispute form you can return
• The deadline for your dispute period

Missing or incorrect information gives you powerful defenses. You can file complaints with the Consumer Financial Protection Bureau if collectors violate these rules.

Keep in mind these federal rules apply to third-party collectors. Original creditors often aren’t bound by FDCPA requirements.

File Your Answer to Stop Default Judgment

Many states provide free answer forms for defendants. Call your local court clerk or check their website for templates.

Your answer must identify incorrect information in the complaint. You’ll also list your legal defenses even if you originally owed the money.

File your answer with the court clerk before your deadline expires. Send a copy to the plaintiff’s attorney whose contact information appears on your summons.

Our partner Solo can help you draft a proper answer quickly. You don’t need expensive lawyers to defend yourself effectively.

Common Defenses Against Credit Card Lawsuits

You have several strong defenses available. Include these in your answer when they apply:

• The statute of limitations expired making the debt time-barred
• Identity theft created the debt
• The collector violated FDCPA rules
• Court procedures weren’t followed correctly
• The collector doesn’t own the debt and lacks standing
• The debt amount is calculated incorrectly

Debt collectors must prove three things to win:

• You owe the debt. They need your original credit agreement or valid documentation.
• They have legal rights to collect. They must show they purchased the debt from the original creditor.
• The amount is correct. This includes original debt, interest, and all fees.

Compare their complaint against your account statements and bank records. Attach documentation supporting your defenses and proving their errors.

Check your credit report for matching errors. You’re entitled to a free annual credit report. Dispute inaccuracies to protect your credit score.

Understanding Statute of Limitations on Debt

Every state sets time limits for debt collection lawsuits. These statutes of limitations vary by state and debt type.

Time-barred debt means creditors missed their legal window to sue you. Courts must dismiss cases for time-barred debt.

But you must raise this defense in your answer. Courts won’t automatically dismiss old debt cases without your input.

What Happens If Creditors Win the Lawsuit

A judgment against you gives creditors powerful collection tools. They can pursue you through multiple methods.

Wage Garnishment Takes Money From Paychecks

Wage garnishment is the most common collection method. Creditors can take money directly from your paycheck before you receive it.

Some income is protected from garnishment. Social Security benefits and certain other payments have legal protections.

Bank Levies Drain Your Accounts

Bank levies work like garnishment but target your bank accounts. Creditors can freeze and withdraw money directly from checking or savings.

Protected income types can’t be levied even in bank accounts.

Property Liens Attach to Your Assets

Creditors can file liens against property you own. Liens rarely force immediate sales because that process is expensive and time-consuming.

Instead, liens prevent you from selling property until you pay the debt. You must satisfy the lien before completing home or car sales.

Debt Relief Options Beyond Lawsuits

Don’t wait until you’re sued to seek help. Acting early prevents penalties, late fees, and compounding interest.

Start With Nonprofit Credit Counseling

Credit counselors explain your options and help you choose the right path. Our partner Cambridge Credit Counseling offers free consultations to review your situation.

Counselors may recommend:

• Debt management plans with lower payments
• Debt consolidation strategies
• Debt settlement negotiations
• Bankruptcy evaluation

Only bankruptcy directly stops pending lawsuits. But other options help you avoid future legal action.

How Bankruptcy Stops Credit Card Lawsuits

Bankruptcy isn’t right for everyone. But it offers powerful protection when debt becomes unmanageable.

Filing bankruptcy immediately stops all collection activity. The automatic stay halts lawsuits the moment you file your case.

Chapter 7 Eliminates Debt Quickly

Chapter 7 bankruptcy discharges most unsecured debts within a few months. Credit card debt is unsecured, making it ideal for Chapter 7 elimination.

You can get a fresh start faster than you think. Most Chapter 7 cases complete in 3-4 months.

Chapter 13 Creates Manageable Payment Plans

Chapter 13 uses a 3-5 year repayment plan. You can catch up on secured debts like mortgages while managing unsecured debt.

Chapter 13 takes longer than Chapter 7 but helps you keep valuable property.

Free Bankruptcy Help Is Available

You don’t need expensive lawyers for simple Chapter 7 cases. Speak with a bankruptcy attorney for free to understand your options and qualifications.

Bankruptcy stops lawsuits, ends garnishments, and gives you the fresh start you deserve.