What To Do If You’re Sued By Your Credit Card Company
Being sued by credit card company for unpaid debt can feel overwhelming. However, ignoring the lawsuit can lead to serious financial consequences, including wage garnishment, bank levies, and court judgments.
If you have been sued by a credit card company, it is important to act quickly and understand your legal options.
Step 1: Do Not Ignore the Lawsuit
If you receive a summons and complaint, you must respond within the deadline listed in the paperwork. Failing to respond can result in a default judgment, meaning the court automatically rules in favor of the creditor.
A default judgment may allow the creditor to:
- Garnish your wages
- Freeze or levy your bank account
- Place liens on property
Responding properly preserves your legal rights.
Step 2: Review the Debt Carefully
Before assuming you owe the amount claimed, consider:
- Is the debt amount accurate?
- Has interest been calculated properly?
- Is the creditor the original lender or a debt buyer?
- Has the statute of limitations expired?
Many credit card lawsuits involve documentation errors or incomplete records, especially when debts have been sold to third-party collectors.
Step 3: Consider Possible Defenses
Common defenses in credit card debt lawsuits may include:
- Improper service of process
- Expired statute of limitations
- Lack of documentation proving ownership of the debt
- Incorrect balance calculations
- Identity theft or fraud
Each case is different, and a careful legal review is important.
Step 4: Explore Settlement Options
In some situations, negotiating a settlement may be appropriate. Creditors often prefer recovering part of the balance rather than incurring ongoing litigation costs.
However, you should avoid agreeing to terms that are not in your financial best interest.
Step 5: Evaluate Bankruptcy as an Option
If your debt situation extends beyond a single credit card lawsuit, bankruptcy may provide broader relief.
Depending on your circumstances, Chapter 7 or Chapter 13 bankruptcy may:
- Stop collection efforts
- Eliminate certain unsecured debts
- Prevent wage garnishment
Bankruptcy should be carefully evaluated with legal guidance.
What Happens If You Lose a Credit Card Lawsuit?
If a judgment is entered against you, the creditor may pursue collection methods allowed under Florida law, including wage garnishment and bank account levies.
Taking action early often improves your options.
Free Consultation
If you are being sued by a credit card company, contact Wites & Rogers to discuss your legal options.
Call 954-933-4400
Early legal intervention can make a significant difference in the outcome of your case.
