{"id":286946,"date":"2016-04-04T10:41:53","date_gmt":"2016-04-04T15:41:53","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/debt-relief\/what-should-i-do-if-i-ve-been-sued-for-debt.html"},"modified":"2024-06-04T01:08:44","modified_gmt":"2024-06-04T06:08:44","slug":"what-should-i-do-if-i-ve-been-sued-for-debt","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/what-should-i-do-if-i-ve-been-sued-for-debt.html","title":{"rendered":"What Should I Do if I’m Sued Over Credit Card Debt?"},"content":{"rendered":"\n
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What Should I Do if I'm Sued Over Credit Card Debt?<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

You are not alone if you feel overwhelmed by debt and fall behind on payments. It can be challenging to catch up after missing a payment. Nearly 30% of residents<\/a> across America’s largest cities were behind on debt payments in 2023. Another approximately 26% are in collections on at least one debt.<\/p>\r\n

If you fall behind on your bills, you can face several different types of lawsuits. Not paying your mortgage lender can put you in foreclosure. Failure to pay rent will start the eviction process. Your vehicle can face repossession actions if you don’t keep up with car loan payments. Becoming seriously delinquent on your credit cards opens you up to a civil lawsuit for collection.<\/p>\r\n

Taking legal action to collect debt costs money and can prolong the process. Nevertheless, you may be sued for debt, especially if you fail to communicate with your creditor and miss multiple payments.<\/p>\r\n

This article covers what to do if a creditor has filed a lawsuit against you for unpaid debt. It will cover everything from reading the complaint to choosing the right attorney.<\/p>\r\n

Basics of a Credit Card Lawsuit<\/h2>\r\n

It usually takes about six months of not making payments on a debt before the creditor initiates a lawsuit. However, many credit card companies often sell your debt to a collection agency, which tries to collect payment plus interest and fees. The creditor or collection agency will attempt to contact you to resolve payments, so your original creditor may not contact you. They must send you a debt validation letter telling you exactly how much you owe. This letter is important as you can see if the debt is yours.<\/p>\r\n

Generally, credit card companies and collection agencies prefer to work out a payment plan with their debtors rather than initiate legal action. Lawsuits are costly and time-consuming, but the collection agency may have no choice if you ignore your debt for too long.<\/p>\r\n

Being Sued After Making Good Faith Efforts<\/h2>\r\n

A creditor may sue you even if you have offered to make small payments on your balance or cooperate with a collection agency. However, creditors typically do not sue debtors who are at least making a good-faith effort to repay a debt, so this is less likely.<\/p>\r\n

As stressful as it is, try not to ignore creditors’ phone calls or letters about your past-due credit card balance. Explain your financial difficulties. Some creditors have special programs if your situation has worsened due to job loss or illness. Working with your creditor(s) can go a long way toward keeping you out of court.<\/p>\r\n

Receiving and Answering a Complaint<\/h2>\r\n

When you are being sued for debt, you receive a legal complaint<\/a> and summons<\/a>. The complaint describes the nature and dollar amount of the claims against you for unpaid debt. The summons is a written notification that you must appear in court on a given date to defend yourself against the claim.<\/p>\r\n

The defendants may be you and any cosigner of your account. The complaint will describe:<\/p>\r\n