Sued for Old Navy Credit Card Debt? Here’s What to Do

Old Navy is suing you for unpaid credit card debt. You’re probably worried and unsure what to do next.

You can fight back. You have options to protect yourself from wage garnishment and a damaging judgment.

Ignoring the lawsuit will only make things worse. Old Navy can freeze your bank account and garnish your wages if you don’t respond.

The good news? You can stop a judgment before it happens. You can even settle your debt for less than you owe.

Why Old Navy Files Lawsuits for Unpaid Debt

Your Old Navy credit card seemed like a great deal at first. You got discounts at Old Navy, Gap, Banana Republic, and Athleta.

Then life happened. Maybe you lost your job or faced unexpected medical bills. Your payments stopped, and Old Navy’s patience ran out.

Now Old Navy wants its money back through the courts. If Old Navy wins a judgment, the consequences are serious.

A judgment allows Old Navy to garnish your wages. It can freeze your bank account and take your money directly. The judgment stays on your public record for years.

Future employers may see the judgment during background checks. Landlords can deny your rental applications. Banks may refuse you loans or credit cards.

You need to act fast to protect yourself.

File an Answer to Stop a Default Judgment

An Answer is your written response to Old Navy’s lawsuit. You must file it within the deadline shown on your court summons.

Your Answer tells the court you’re defending yourself. It prevents Old Navy from winning by default.

Without an Answer, the judge can grant a Summary Judgment against you. Old Navy wins automatically if you don’t respond.

Our partner Solo can help you prepare your Answer in minutes. You don’t need a lawyer to file one.

Your Answer should include specific defenses to the lawsuit. You might argue:

• The debt amount is incorrect or inflated
• The statute of limitations has expired in your state
• You’re a victim of identity theft and don’t owe the debt
• Old Navy can’t prove you owe the debt
• The creditor doesn’t have proper documentation

You must tell the truth in your Answer. An Answer is a legal document filed with the court.

Choose defenses that actually apply to your situation. The judge will notice if you lie or exaggerate.

Even if you know you owe the debt, you can still file an Answer. An Answer buys you time to negotiate a settlement.

Pay Your Debt in Full Before Court

Paying your Old Navy debt completely stops the lawsuit immediately. Old Navy has nothing left to sue you for once you pay.

Full payment is your best option if you have the money. Your credit report will show the account as “paid in full.”

Future creditors view paid accounts more favorably than judgments or settlements. Your credit score will recover faster with full payment.

Make sure your payment includes all court costs Old Navy incurred. Ask Old Navy for a written receipt showing zero balance.

Request written confirmation that Old Navy is dropping the lawsuit. Keep all documentation for your records.

Old Navy must report the paid status to credit bureaus within 30 days. You can dispute the report if Old Navy fails to update it.

Settle Your Old Navy Debt for Less

Debt settlement is your best option if you can’t afford full payment. You offer Old Navy a lump sum less than you owe.

Old Navy often accepts settlements between 40% to 60% of the debt. Creditors know getting something is better than nothing.

Calculate how much you can realistically offer. Check your savings and available funds. Consider borrowing from trusted family members if needed.

Here’s how settlement works in practice:

Example: Old Navy sues Maria for $1,500 in credit card debt. Maria can’t afford $1,500 before her court date. She scrapes together $800 from savings. Our partner Solo helps Maria negotiate with Old Navy. After two rounds of offers, Old Navy accepts $750 to settle the debt completely.

Maria pays the $750. Old Navy drops the lawsuit and releases Maria from the remaining $750 debt.

Get everything in writing before you pay. Old Navy must provide a settlement agreement stating:

• The exact settlement amount you’re paying
• Confirmation the lawsuit will be dismissed
• Agreement you’re released from remaining debt
• Timeline for dropping the lawsuit after payment

Never pay before receiving a written settlement agreement. Some creditors take your money and continue pursuing the full debt.

Your credit report will show the account as “settled” rather than “paid in full.” A settlement still damages your credit less than a judgment.

What Happens If You Ignore the Lawsuit

Ignoring an Old Navy lawsuit guarantees you’ll lose. The court will grant Old Navy a default judgment automatically.

A judgment gives Old Navy powerful collection tools. Old Navy can garnish up to 25% of your wages in most states.

Your employer must comply with wage garnishment orders. The money comes out of your paycheck before you receive it.

Old Navy can also freeze your bank account. You’ll wake up unable to access your money for bills or groceries.

The judgment stays on your credit report for seven years. It appears on background checks that employers and landlords run.

You’ll pay more than just the original debt. Judgments include:

• The original debt amount
• Interest that continues accruing
• Court filing fees
• Attorney fees if Old Navy hired lawyers
• Collection costs

Your total debt can double or triple with a judgment. Take action before the court date to avoid this outcome.

How to Respond to Your Old Navy Lawsuit

You received a court summons from Old Navy. Now you need a plan of action.

First, check your summons deadline. You typically have 20 to 30 days to respond, depending on your state.

Second, gather all documentation related to your Old Navy account. Collect credit card statements, payment records, and correspondence from Old Navy.

Third, file your Answer before the deadline. Our partner Solo walks you through every step of creating your Answer.

Fourth, decide whether to pay in full or negotiate a settlement. Review your finances honestly.

Fifth, contact Old Navy or their attorney to discuss resolution. Most creditors prefer settling over going to court.

Act immediately when you receive the summons. Every day you wait reduces your options and increases your risk.