What happens when a credit company takes you to court?
Andrew Campbell
Updated on February 06, 2026
When your card issuer – or a collection agency that has purchased your debt from the issuer – can’t get you to pay your bill, a lawsuit seeks to obtain a court judgment, which may give the company the right to garnish your wages and bank account until the debt is paid.
What to expect when a creditor takes you to court?
If a creditor or collection agency sues you for nonpayment of a debt, it’ll serve you with a complaint and you have the opportunity to respond. If you respond to the suit, the case then gets underway with discovery, settlement conferences, motions for summary judgment, and perhaps a trial.
What should I do if a debt collector sues me?
What to do when you’re being sued by a debt collector
- Verify the timeline of events.
- Respond.
- Challenge the lawsuit.
- Decide whether to accept the judgment.
- Act impulsively.
- Ignore the debt collection lawsuit.
- Accept liability.
- Give access to your bank accounts.
Do you have to go to court to settle credit card debt?
If you think there’s a chance you could be sued or you’ve already received notice of a lawsuit, you should contact your creditor or debt collector. Lawsuits are time-consuming and expensive, so the creditor or the debt collector may be willing to negotiate a settlement with you instead.
Do you need a lawyer to fight a debt collector?
If the lawsuit is filed in a small claims or magistrate court, you are allowed to represent yourself. If it is filed in a higher court, you are generally required to bring a lawyer to represent you. Even if you don’t need an attorney in court, it may not be a bad idea to consult with one to ensure you handle everything correctly.
What happens when a credit card company goes to court?
A credit card company or collection agency must take you to court to get a judgment against you. If you lose the lawsuit and a judgment is issued, a creditor can collect the money you owe. Although it’s better to try to settle the debt before you actually get sued, in most cases, a creditor is still willing to settle after judgment.
Do you have to answer a civil summons for credit card debt?
If you settle the debt out of court, the creditors and their lawyers can withdraw the case. You can avoid the hassle of filing an answer formally with the court. If trying to reach a settlement does not work out or you decide you prefer to go to court, you must file an answer to the served summons.
