Being Sued for Credit Card Debt: What to Do in 30 Days

File a written answer with the court before the deadline printed on your summons. That is the single action that changes the outcome. Debt lawsuits are overwhelmingly resolved by default judgment — not because the claims are strong, but because the people served do not respond.

An answer keeps the case a negotiation. No answer hands over wage garnishment and bank levies.

Day 1: read the papers and find two things

The answer deadline. Printed on the summons. It is commonly 20 to 30 days but varies by state and by court, and it is calculated from the date of service. Write it on a calendar today.

Who is suing you. Frequently a debt buyer rather than your original bank, because charged-off accounts are sold in bulk. That fact creates the most common real defense in these cases — see why a debt buyer is the plaintiff.

Then: do not call the plaintiff’s attorney yet. Anything you say about the debt can be used, and an acknowledgment can affect the limitations analysis. Read first, respond in writing, negotiate later.

Days 2–7: check the four defenses

Not excuses — the four things that actually decide these cases.

1. The statute of limitations has expired. If your state’s period has run, the claim cannot succeed — but only if you raise it in the answer. The court will not notice it for you. Check whether the debt is time-barred.

2. The plaintiff cannot prove it owns the debt. A debt buyer must establish the chain of assignment from the original creditor to itself, tied to your specific account. Bulk-purchased portfolios sometimes arrive with spreadsheets rather than documents. This is the plaintiff’s burden, not a technicality to be sheepish about.

3. The amount is wrong. Post-charge-off interest and fees added by a purchaser are frequently challenged, and sometimes not supported by the underlying agreement.

4. It is not your debt. Mistaken identity, a family member’s account, or identity theft. Do not ignore a suit because you believe the debt is not yours — that produces a judgment against you regardless.

Days 7–20: file the answer

Most state courts publish an answer form for debt collection cases, and many have a self-help center that will help you complete it. A basic answer does three things:

• Responds to each numbered allegation — admit, deny, or state that you lack knowledge sufficient to admit or deny. Deny what you do not know to be true.
• Raises your affirmative defenses, including the statute of limitations if it applies.
• Gets filed with the court and served on the plaintiff’s attorney, following the instructions in the papers.

There may be a filing fee, and a fee waiver is generally available for low incomes.

An imperfect answer filed on time beats a perfect answer filed late, and both beat silence by a wide margin.

In parallel: get free help

This is one of the areas where free legal representation genuinely exists and is underused:

• Legal aid organizations handle consumer debt defense for qualifying incomes.
• Law school clinics take these cases and are often excellent on them.
• Court self-help centers will not represent you but will help with the forms.
• Consumer attorneys sometimes take these on contingency where the collector’s conduct violated federal law, because the statute provides for fees.

Call before the deadline, not after.

After you answer: what usually happens

The case moves into discovery and negotiation. Two common paths:

A request for documents. You can ask the plaintiff to produce the account agreement, the statement history, and the chain of assignment. Cases sometimes end here.

A settlement. Collectors settle lawsuits routinely, often for less than the claim, because litigating is expensive relative to the amounts involved. Your position after answering is materially better than before, which is the practical argument for answering even when you owe the money and do not dispute it. See settling the case.

If you settle, make sure the resolution is documented with the court so the case is dismissed rather than left pending, and get the terms in writing before paying anything.

What a judgment means, if one is entered

So the stakes are concrete: wage garnishment (federally capped for consumer debt at the lesser of 25% of disposable earnings or the amount above $217.50 a week, with several states more protective), bank levies, a lien on real property in many states, post-judgment interest, and renewal for years. See what a judgment enables.

If a default judgment has already been entered, ask about a motion to vacate — courts can set aside default judgments for improper service or other grounds, and there are deadlines. That is a lawyer question and it is worth asking quickly.

The option that ends the case entirely

Filing bankruptcy triggers the automatic stay, halting the lawsuit immediately, and in some circumstances a garnishment already underway can be undone. That is not a reason to file over one lawsuit — but if the suit is one of several problems and the total debt is beyond your capacity, it addresses all of it at once. See how filing stops the suit.

Frequently asked questions

What happens if I ignore a credit card lawsuit? The court enters a default judgment for the amount claimed plus costs, fees and interest, without the plaintiff proving anything. That judgment enables wage garnishment, bank levies and property liens for years.

How do I answer a debt collection lawsuit? Use your court’s answer form, respond to each allegation, raise any affirmative defenses such as the statute of limitations, and file it with the court and serve the plaintiff’s attorney before the deadline on the summons.

Can I settle after being served? Yes, and it happens often. File the answer first — negotiating does not pause the deadline, and your leverage is better after answering than before.

Do I need a lawyer to fight a debt lawsuit? Not strictly; courts provide forms and many people answer on their own. But legal aid, law school clinics and consumer attorneys frequently handle these at no cost, so it is worth one phone call before deciding to go alone.

How long do I have to respond? It is printed on the summons and varies by state and court, commonly 20 to 30 days from service. Rely on the document, not on any general figure.

Can they garnish my wages before a judgment? Not for ordinary consumer debt. Garnishment requires a judgment first, which is why responding to the lawsuit is the point at which the outcome is still in your hands.

This article describes the general sequence for responding to a consumer debt lawsuit. It is not legal advice. Civil procedure, deadlines, defenses and garnishment rules are state law and vary substantially. If you have been served, get advice specific to your court — free help is often available.