Quick Summary: If a credit card company sues you, don’t panic, and don’t ignore it. You may be able to get the lawsuit dismissed if the debt isn’t yours, you already paid it, the amount is wrong, or the statute of limitations has passed. The key is responding on time, gathering evidence, and working with a debt relief attorney who can negotiate a settlement or file a motion to dismiss.
What Happens When a Credit Card Company Sues You?
When you fall far behind on payments, usually 180 days or more, the credit card company or a debt collector can take you to court. They file a complaint with your local civil court, naming you as the defendant. The complaint says how much you owe and what they want: the debt amount, plus interest, and sometimes attorney fees and court costs.
You’ll receive a summons telling you when to respond. If you answer and show up, both sides argue their case. If the creditor wins, the court enters a judgment against you. That judgment gives them stronger tools to collect, like garnishing your wages, freezing your bank account, or seizing assets.
But here’s the good news: you have options. Many credit card lawsuits can be challenged, settled, or dismissed, especially if you act quickly.
Why Would a Credit Card Lawsuit Be Dismissed?
Courts dismiss debt lawsuits for several reasons. If any of these apply to you, you may have grounds to fight the case:
The debt isn’t yours. Mistakes happen. Someone with a similar name might owe the debt, or you could be a victim of identity theft. If the creditor sued the wrong person, the case should be thrown out.
You already paid it. Debt collectors sometimes work from outdated records. If you have proof you paid the debt, such as bank statements, receipts, or confirmation letters, you can show the court the lawsuit has no merit.
The amount is wrong. Even if you do owe money, the creditor might be suing for the wrong amount. They may have added incorrect fees or miscalculated interest. You can challenge any amount you don’t actually owe.
The statute of limitations has expired. Every state sets a time limit for how long creditors can sue you for a debt. After that deadline passes, the debt becomes “time-barred.” In most states, this is 3-6 years. New York recently changed its statute of limitations, so check what applies to your situation.
The creditor can’t prove they own the debt. Debts get sold from company to company. Sometimes the collector suing you can’t prove they actually own your debt or have the right to collect it. Without proper documentation, their case falls apart.
How Do You Get a Credit Card Lawsuit Dismissed?
Getting a lawsuit dismissed takes action. Here’s what to do, step by step:
Step 1: Respond to the Lawsuit
This is the most important step. When you receive a summons and complaint, you typically have 20-30 days to respond (the exact deadline depends on your state and how you were served).
Do not ignore the lawsuit. If you don’t respond, the creditor wins automatically. This is called a “default judgment,” and it lets them garnish your wages or freeze your bank account without you ever getting to tell your side.
Even if you think the lawsuit is unfair or you can’t afford to pay, respond anyway. Showing up gives you a chance to fight.
Step 2: Gather Your Evidence
Collect any documents that support your case. This might include:
- Bank statements showing payments you made
- Letters or receipts confirming the debt was paid
- The original credit card agreement
- Any correspondence with the creditor or collector
- A debt validation letter (if you requested one)
Your memory alone isn’t enough. Courts want proof on paper.
Step 3: Talk to a Debt Relief Attorney
You can represent yourself in court, but an experienced attorney knows the rules, the process, and the strategies that work. They can spot weaknesses in the creditor’s case that you might miss.
Many debt relief attorneys offer free consultations. You can learn your options before deciding whether to hire them. An attorney can also negotiate with the creditor on your behalf, sometimes settling for far less than you owe or getting the case dropped entirely.
Step 4: Choose Your Strategy
Work with your attorney to decide the best path forward. Your main options are:
File a motion to dismiss. If the creditor’s case has a fatal flaw, wrong person, expired statute of limitations, or no proof of ownership, your attorney can ask the court to throw out the lawsuit before it goes further.
Negotiate a settlement. Sometimes the best outcome is settling the debt for less than you owe. Creditors often prefer getting some money now over a long court battle. You might pay a lump sum at a discount or set up a payment plan. Once you pay, the lawsuit gets dismissed.
Fight it in court. If you have a strong defense, like proof you already paid, you can take the case to trial and ask the judge to rule in your favor.
File a counterclaim. If the creditor or collector broke the law, you can fight back. The Fair Debt Collection Practices Act (FDCPA) protects you from harassment, threats, and deceptive practices. If a collector called outside legal hours, lied about what you owe, or threatened you illegally, you may have a counterclaim against them.
What If You Actually Owe the Debt?
Owing the debt doesn’t mean you’re out of options. You can still:
Negotiate a settlement. Creditors would rather get paid something than spend time and money on a lawsuit. An attorney can often settle the debt for 40-60% of what you owe, sometimes less.
Challenge the amount. Even if you owe the original balance, you may not owe all the fees and interest they’ve added. Make them prove every dollar.
Set up a payment plan. Some creditors will agree to monthly payments instead of a lump sum, especially if you can show you want to pay but can’t afford the full amount at once.
The worst thing you can do is nothing. Ignoring the lawsuit guarantees you’ll lose.
Get Help With Your Credit Card Lawsuit
Facing a lawsuit is stressful, but you don’t have to handle it alone. Tayne Law Group has helped clients resolve credit card debt for over 20 years. Whether you need to fight a lawsuit, negotiate a settlement, or figure out your next step, we can help.
Call (866) 890-7337 for a free consultation, or fill out our short contact form. All conversations are confidential, and we never share your information.
Frequently Asked Questions
Can I ignore a credit card lawsuit?
No. Ignoring a lawsuit means you lose automatically. The court will enter a default judgment, and the creditor can garnish your wages, freeze your bank account, or seize assets, all without you getting a chance to defend yourself.
How long do I have to respond to a credit card lawsuit?
Usually 20-30 days from when you’re served, depending on your state. Check the summons for your exact deadline. Missing it can result in an automatic loss.
What is the statute of limitations on credit card debt?
It varies by state, typically 3-6 years from your last payment. After that, the debt is “time-barred” and can’t be collected through a lawsuit. However, some actions (like making a small payment) can restart the clock.
Can I settle a credit card debt after being sued?
Yes. Many lawsuits end in settlement rather than trial. Creditors often prefer a guaranteed payment now over the uncertainty of court. An attorney can negotiate a settlement for less than you owe, and once you pay, the lawsuit is dismissed.
Do I need a lawyer for a credit card lawsuit?
You’re not required to have one, but it helps. Debt collection laws are complex, and creditors have attorneys on their side. A debt relief attorney knows how to find weaknesses in their case, negotiate settlements, and protect your rights in court.
