A lawsuit summons feels catastrophic — but most people respond wrong (or not at all). Here's exactly what to do, which defenses work, and how to avoid the judgment that lets them take your paycheck.
Ignoring a credit card lawsuit is the single worst thing you can do. The creditor will get a default judgment automatically — no court appearance, no arguments, no chance for you to fight back. That judgment can result in wage garnishment of up to 25% of your paycheck. Keep reading.
You opened the mail and found a legal summons. Maybe it's from your original credit card issuer — Chase, Capital One, Discover, Citibank — or maybe it's from a debt buyer you've never heard of. Either way, the clock is ticking. You have somewhere between 14 and 30 days depending on your state to respond in writing to the court.
Most people panic and do nothing. That is exactly what the creditor is hoping for. This guide walks you through everything: what the summons means, how to respond, which defenses can beat the lawsuit entirely, and what settlement usually looks like.
A summons is an official court document notifying you that a lawsuit has been filed against you. It will include the name of the court, the case number, the name of the plaintiff (the creditor or debt buyer), and a deadline to respond. This deadline is called the Answer deadline.
The Answer deadline varies by state and type of court. In most civil courts it is 20 to 30 days from the date you were served — not the date the summons was mailed, not the postmark date, but the date a process server handed it to you or left it at your residence.
| State | Answer Deadline | Notes |
|---|---|---|
| California | 30 days | Personal service; 35 days if served by mail |
| New York | 20 days | In-state personal service; 30 days if served by mail |
| Texas | By 10 a.m. Monday after 20 days | First Monday after 20-day period from service |
| Florida | 20 days | From date of service of process |
| Illinois | 30 days | Circuit court; small claims may vary |
| Pennsylvania | 20 days | Or 30 days if served outside county |
| Ohio | 28 days | From date of service |
| Georgia | 30 days | Personal service in-state |
| Michigan | 21 days | Circuit court general civil rules |
| Arizona | 20 days | Personal service; 30 days if served out-of-state |
If you are unsure of your deadline, look at the summons itself — it will state the deadline explicitly. If it does not, call the clerk of the court listed on the summons and ask. Do not guess.
A default judgment is what happens when you are sued, fail to respond, and the court rules in the plaintiff's favor without any hearing. The judge does not weigh the evidence. The plaintiff simply certifies that you did not respond, and the clerk or judge enters judgment for the full amount claimed — often the original balance plus years of interest, late fees, and attorney costs.
Once they have a judgment, creditors gain powerful collection tools:
A default judgment is extremely difficult to overturn after the fact. You must prove you had a valid excuse for not responding, and courts are skeptical. Filing even a basic Answer preserves all of your rights and forces the creditor to actually prove their case.
Your response to the lawsuit is called an Answer. The Answer is a formal legal document you file with the court that responds to each numbered paragraph in the complaint. For each paragraph, you can:
When in doubt, deny. You are not committing perjury by denying an allegation you are uncertain about — you are simply forcing the plaintiff to prove it. Many defendants admit more than they should, essentially handing the creditor their case.
Your Answer should also include your affirmative defenses — legal reasons why you should win even if some facts are true. List every defense that might apply. We cover the most powerful ones below.
Every state limits how long a creditor has to sue you for a debt after your last payment or account charge-off. If they are suing you after this period has expired, you have a complete defense. The debt does not go away, but the creditor loses the legal right to sue. See our full guide: Statute of Limitations on Debt by State.
Creditors and debt buyers frequently inflate the amount they claim you owe. This includes improper interest calculations, duplicate fees, post-charge-off interest that may not be contractually authorized, or flat-out errors in the balance. Request documentation of exactly how the claimed amount was calculated.
To win a lawsuit, the plaintiff must prove they have the legal right to collect — called "standing." Debt buyers who purchased your account must show a complete chain of title: every assignment from the original creditor to the current plaintiff. Many debt buyers paid pennies on the dollar for large portfolios of debts and have sloppy documentation. This is one of the most powerful defenses against debt buyers specifically.
Courts have strict rules about how a lawsuit must be served on the defendant. If the process server delivered the summons to the wrong address, left it with an unauthorized person, or falsified the service record — a practice called "sewer service" — you may be able to challenge the court's jurisdiction over you entirely.
Debt buyers sometimes sue the wrong person entirely — a common name, an old address match, or a data error. If this account was opened fraudulently or you have documentation that you are not the responsible party, this is an absolute defense. File a police report and gather any evidence of the identity theft.
If you previously settled this account for a lesser amount or paid it in full, and the creditor or a subsequent buyer is still suing you, you have a complete defense. Locate your settlement letters, release agreements, and bank statements showing the payment.
If this debt was included in a prior bankruptcy discharge, attempting to collect it violates the bankruptcy discharge injunction — a federal court order. This is not just a defense; it can expose the creditor to contempt of court and damages.
If the debt collector violated the Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act (FCRA) in their collection attempts, you may have counterclaims that exceed the amount they are suing you for. This creates attorney fee-shifting: a consumer rights attorney may take your case for free because the defendant ends up paying their fees. See our guide on your FDCPA rights.
| Defense | Strength | Evidence Needed |
|---|---|---|
| Statute of limitations expired | Very Strong | Last payment date; state SOL table |
| Debt buyer lacks standing / chain of title | Very Strong | Demand original credit agreement + assignments |
| Debt discharged in bankruptcy | Very Strong | Discharge order; schedule listing this debt |
| Account already paid / settled | Strong | Settlement letter, release, bank statements |
| Identity theft / wrong person | Strong | Police report, credit dispute records |
| Wrong amount claimed | Medium | Original statements, payment history |
| FDCPA / FCRA violation counterclaim | Medium | Collection letters, credit reports, call logs |
| Improper service | Varies | Proof you were at different address; witnesses |
When your credit card account goes unpaid for 180 days, most banks charge it off and sell the balance to a debt buyer — also called a junk debt buyer (JDB) — for 3 to 7 cents on the dollar. Common JDBs include Midland Credit Management, Portfolio Recovery Associates, LVNV Funding, Cavalry SPV, and Asset Acceptance.
Debt buyers are required to prove they own the debt and that you owe the exact amount claimed. They must have:
Many JDBs purchased accounts in bulk sales without full documentation and genuinely cannot produce these documents. When you demand them through discovery, the case often falls apart or results in a favorable settlement.
Original creditors — Chase, Citi, Bank of America suing directly — are harder to beat on standing because they clearly own the account. But they are still subject to SOL defenses, amount errors, and FDCPA/FCRA counterclaims.
Once you file your Answer, you have the right to conduct discovery — the formal process of requesting documents and information from the other side. In a credit card lawsuit, you should demand:
Many cases are dropped or settled favorably after the defendant requests these documents, because the creditor realizes they cannot produce them or that doing so will be more expensive than settling.
The majority of credit card lawsuits settle before trial. If the creditor is a debt buyer, they paid 3–7 cents on the dollar — so even settling for 40% of the face amount is a significant profit for them. Even original creditors often prefer settlement to the cost and uncertainty of trial.
Typical settlement ranges:
Get any settlement in writing before paying. The written agreement should state the amount resolves the debt in full and that the creditor will dismiss the lawsuit with prejudice. Never pay without a written release.
Before the lawsuit progresses, demand proof they can actually collect. Our free tool generates a professional debt validation letter — the same type attorneys use — in under 2 minutes.
Generate Your Free Letter NowMost credit card lawsuits for amounts under $5,000–$10,000 (varies by state) are filed in small claims court. Some states have limits as low as $2,500; others allow up to $25,000 in small claims. In small claims court:
In regular civil court (general sessions, district court, or circuit court depending on the state), the procedures are more formal, discovery is more available, and larger amounts are at stake. Hiring an attorney is more important in civil court.
You should consult an attorney — ideally one who focuses on consumer debt defense or FDCPA — if:
The FDCPA contains an attorney fee-shifting provision: if you win an FDCPA case, the defendant pays your attorney's fees. This means consumer rights attorneys frequently take FDCPA cases with no upfront cost to you. Many offer free consultations. See more on FDCPA rights and remedies.
| State | Written Contract SOL | Open Account (Credit Card) SOL |
|---|---|---|
| California | 4 years | 4 years |
| New York | 6 years | 6 years |
| Texas | 4 years | 4 years |
| Florida | 5 years | 5 years |
| Illinois | 5 years | 5 years |
| Pennsylvania | 4 years | 4 years |
| Ohio | 6 years | 6 years |
| Georgia | 6 years | 6 years |
| Michigan | 6 years | 6 years |
| Arizona | 6 years | 6 years |
The SOL clock typically starts on your date of last payment or the date of default — whichever is later. Some states use the date of charge-off. This is a nuanced area; see our full guide at Statute of Limitations on Debt for details and how to calculate your specific deadline.
| Timeframe | Action to Take | Why It Matters |
|---|---|---|
| Day 1–2 | Read the summons carefully; note your Answer deadline | Missing the deadline = automatic loss |
| Day 1–3 | Research who is suing you — original creditor or debt buyer? | Shapes your defense strategy |
| Day 1–5 | Calculate when your last payment was; check SOL | SOL defense could end the case immediately |
| Day 3–7 | Consult a consumer rights attorney (many free consultations) | Identify FDCPA claims, get professional assessment |
| Day 5–10 | Draft your Answer; deny allegations you cannot confirm; list defenses | Preserves all rights; forces creditor to prove their case |
| Day 7–14 | File your Answer with the court; pay filing fee or request waiver | Must be filed before deadline, not just mailed |
| Day 14–21 | Send discovery requests to the plaintiff | Demand original agreement, payment history, chain of title |
| Day 21–30 | Begin settlement negotiations if appropriate | Most cases settle; earlier negotiation = better terms |
If the creditor wins a judgment, not all income and assets are automatically collectible. Federal and state law protects certain "exempt" property from judgment creditors:
Even after a judgment, you can negotiate a payment plan directly with the creditor or their attorney. Creditors often prefer predictable payments over enforcement actions, which are expensive. If you genuinely cannot pay, explore whether bankruptcy would give you a fresh start — especially Chapter 7, which can discharge credit card debt entirely.
Read more about your options if you've been sued: Responding to a Debt Collection Lawsuit.
Most states allow 20 to 30 days from the date of service. Check your summons for the exact deadline. California gives 30 days; New York gives 20 days for personal service. Missing this deadline results in a default judgment against you — do not miss it under any circumstances.
Yes — especially in small claims court. Many defendants successfully represent themselves by filing an Answer, raising SOL defenses, and requesting discovery. That said, if the amount is over $5,000 or you believe you have FDCPA counterclaims, a free consultation with a consumer rights attorney is worth the time.
Filing an Answer does not stop the lawsuit — it joins the lawsuit. It prevents a default judgment and forces the case to continue. At that point the creditor must prove their case, you can conduct discovery, and settlement negotiations typically begin. Many cases are dropped after the defendant files an Answer and requests documents the creditor cannot produce.