Can a Credit Card Company Sue You?
Helping You Rebuild Financial Freedom
What Happens if You Don’t Pay Your Credit Card Bill?
Protect your rights and respond to credit lawsuits.
When bills pile up, and collection calls won’t stop, it’s natural to ask: Can a credit card company sue you?
Yes, if payments are missed and the account goes into default, a creditor or a debt buyer can take you to court to collect what they claim you owe. The good news is that you have rights at every step. You can challenge the lawsuit, negotiate a settlement, or even stop most collection actions through bankruptcy. Acting quickly is essential because deadlines are short and the consequences of ignoring a lawsuit can be severe.
At Cherney Law Firm, LLC, we help individuals and families in Marietta, Georgia face these challenges with clarity and confidence. With more than 15 years of experience, we explain your options in simple terms, protect your rights, and pursue the solution that fits your situation, whether that means defending the case, settling it on favorable terms, or using Chapter 7 or Chapter 13 bankruptcy to regain control. You are not alone in this process, and you do not have to face aggressive creditors without support.
When Can a Credit Card Company Sue You?
A credit card company can sue you if you fail to make payments for an extended period, typically after several months of missed payments. Once the debt is deemed uncollectible, the creditor may file a lawsuit to recover the owed amount, potentially leading to wage garnishment or other legal actions. Understanding the triggers and timeline for such a lawsuit is crucial to taking proactive steps.
- Delinquency typically begins 30 days after a missed payment.
- After about 180 days of nonpayment, most accounts are placed in default.
- Once in default, a creditor may file a lawsuit, or it may sell the account to a third-party debt buyer who can also sue.
Most creditors try to collect through calls and letters before filing suit. Some will work with outside collection agencies first. Many clients are surprised to learn that the company suing them is not the original bank. This is common. Debts are often sold and resold, which can affect what documentation the plaintiff has and whether they can prove the case.
Lawsuits often become more likely as the balance grows. Many creditors consider suing when balances reach around $2,700, though we have seen cases for smaller and larger amounts. Internal policies, your payment history, and whether a judgment seems collectible all factor into the decision.
Your risk level tends to rise if:
- You have not made payments for six months or more.
- You stop responding to calls or letters.
- You have income or assets that a creditor believes it can reach with a judgment.
- The creditor or debt buyer has the documentation needed to file suit.
If you’re unsure where you stand, start by gathering your statements and any letters you’ve received. A quick review can reveal whether the debt is old, whether fees or interest were added in error, or whether the account was sold. Our team at Cherney Law Firm, LLC can help you assess the status, make a plan, and act before a lawsuit is filed.
The Legal Process: What to Expect if You’re Sued
If a creditor or debt buyer files a case, you will be served with two documents: a summons and a complaint. The summons tells you that you are being sued and how long you have to respond. The complaint lists the allegations and the amount claimed. These papers are critical. Read them right away and note your deadline.
- In most states, you have 20 to 30 days to respond.
- If you do not respond, the court may enter a default judgment.
- A default judgment lets the creditor pursue collection methods allowed by law, such as wage garnishment, bank account levy, or liens.
Responding on time protects your rights. It also gives you options to challenge the claim or negotiate a settlement.
Once you file a response (called an “answer”), the case may move through these stages:
- Discovery, where both sides exchange information and documents.
- Motions and hearings, where the judge makes legal rulings.
- Settlement discussions can happen at any time.
- Trial, if the case does not settle.
Preparation matters. We help you verify the amount, check whether the plaintiff owns the debt, and confirm that the case was filed within the statute of limitations. Many cases resolve before trial, especially when documentation is lacking or when we raise valid defenses.
Possible outcomes include:
- Settlement: We negotiate lower balances or structured payments you can manage.
- Dismissal: If the plaintiff can’t prove its case, the court may dismiss the lawsuit.
- Judgment for the creditor: If the creditor proves the claim, the court may enter a judgment.
- Judgment in your favor: In some cases, you may win at trial if the plaintiff fails to meet its burden.
At Cherney Law Firm, LLC, we’ve seen how fast these cases move and how quickly a default can change your situation. If you’ve been served, reach out to us promptly. We will help you respond before the deadline and explore every option to protect your income and assets.
Common Defenses Against Credit Card Lawsuits
Even if the complaint looks intimidating, you may have strong defenses. Asking “Can a credit card company sue you?” is only the first step. The next step is to determine whether they can win. We review the facts to see what applies in your case.
- Statute of limitations: Each state sets a time limit for filing suit. It’s often between four and six years, starting from your last payment or activity, though the rules vary. If the time limit has expired, you can ask the court to dismiss the case. In Georgia, the statute of limitations on most credit card contracts is generally six years, but we confirm the precise timeline for your account.
- Proof of the debt: The plaintiff must prove the balance, the account, and the terms. If statements are missing, numbers don’t add up, or interest and fees were applied in error, the claim may fall apart. We check whether the calculation is accurate and supported.
- Ownership and standing: If a debt buyer sues, they should show they own the account. That usually means a clear chain of assignment from the original creditor. Missing links can be grounds for dismissal.
- Identity theft or fraud: If charges were made without your authorization, that is a defense. We help you gather evidence, report the fraud, and dispute the charges.
- Fair Debt Collection Practices Act (FDCPA) violations: If a collector used abusive tactics, threatened illegal actions, or misrepresented the amount owed, that may support a defense or a counterclaim.
Debt verification is a key step. You can request documents that show the balance, a copy of the agreement, and proof that the plaintiff has the right to sue. In our experience, older debts, especially those that have been sold multiple times, often come with gaps in records. That can be a deciding factor.
Remember: raising defenses is not about technicalities. It is about making sure the plaintiff proves its case and follows the law. We make that process simple and manageable.
How to Protect Yourself and Respond to a Lawsuit
The most important thing you can do is act quickly. If you don’t respond, the court may enter a default judgment. We help you avoid that outcome by guiding you step by step.
Here’s how to protect yourself:
- Do not ignore court papers: Open the envelope and read the summons and complaint. Write down the response deadline. Missing it can lead to a default judgment.
- Gather documents: Collect monthly statements, letters from the creditor or collector, any settlement offers, and proof of payments. Keep these in one folder. Organized records make it easier to spot errors or inflated balances.
- Request validation: You have the right to ask the collector to validate the debt. We can help you send a written request that asks for the amount owed, the name of the creditor, the chain of ownership, and the date of last activity.
- Check deadlines and local rules: Response times vary by state. The CFPB’s consumer page on what to do if you are sued by a creditor or collector explains the basics.
- Consider settlement options: If the debt is valid and the plaintiff can prove it, we may negotiate a settlement. We aim to reduce the balance, set up a payment plan you can afford, or secure a lump-sum discount. Every agreement should be in writing and should clearly resolve the case upon payment.
- Avoid risky payments: A small payment on an old debt can restart the statute of limitations in some states. Do not make payments or admit the debt until we review your options.
- Keep a paper trail: Save copies of every letter, email, and court filing. Take notes during phone calls, including the date, time, and the name of the person you spoke with. If you file anything with the court, save a stamped copy for your records.
- Explore bankruptcy if the debt is overwhelming: Filing Chapter 7 or Chapter 13 can stop lawsuits and most collection activity immediately through the “automatic stay.” In Chapter 7, qualifying unsecured debts like credit cards may be discharged. In Chapter 13 bankruptcy, you can repay some debts over three to five years and catch up on secured debts, like a mortgage or car loan, while stopping garnishments.
Above all, do not delay. If you take action now, you give yourself more options, whether that means challenging the claim, negotiating a settlement, or using bankruptcy protections to get a fresh start.
Moving Forward With Confidence With Cherney Law Firm, LLC
You have rights, you have options, and with experienced guidance, you can take control of your next steps.
At Cherney Law Firm, LLC, we help you:
- Understand your legal rights in clear, plain language.
- Evaluate defenses such as the statute of limitations, missing documentation, or lack of standing.
- Verify the debt and require proof before any money changes hands.
- Negotiate fair settlements that protect your budget and your peace of mind.
- Fight the lawsuit if the plaintiff cannot meet its burden of proof.
- Explore Chapter 7 or Chapter 13 bankruptcy if that path offers broader relief.
Our approach is personal and practical. We look at your whole financial picture, not just one lawsuit. We discuss your income, your expenses, your goals, and your stress points. Then we craft a strategy that fits. We never make empty promises. Instead, we work with you to pursue a favourable outcome for your unique situation, whether that means stopping a garnishment, keeping your car, or eliminating unsecured debts so you can breathe again.
If you’ve been served, contact our office in Georgia as soon as possible. A short conversation can make a big difference. We will review your papers, explain your options, and map out a plan so you know exactly what comes next.