I'm being sued for credit card debt. What do I do?
Read the complaint and check the math, demand the original creditor chain (often the debt buyer cannot produce it), file an Answer before the deadline, raise statute-of-limitations and standing defenses, and negotiate from the courthouse steps if needed.
Most credit-card lawsuits are filed by debt-buyer companies that purchased the account from the original creditor for pennies on the dollar. They often cannot produce the chain of ownership documents the court requires. About 70% of credit-card collection cases end in default judgment because the defendant did not respond - and the simple act of showing up and demanding proof flips the dynamics dramatically.
What to do
Step 1
Read the complaint and verify the numbers
Check the principal, interest rate, fees, and total. Cross-check against any statements you have. Errors are common: wrong account, wrong amount, fees stacked on top of fees. List every discrepancy.
Step 2
File an Answer before the deadline
Most states give 20-30 days. The Answer should: deny every paragraph you cannot verify, demand strict proof, and raise affirmative defenses. Common affirmative defenses for debt cases: statute of limitations (most states are 3-6 years from last payment), lack of standing (the plaintiff cannot prove it owns the debt), and FDCPA violations (improper collection conduct).
Step 3
Send a written demand for proof of ownership and accounting
Under the federal Fair Debt Collection Practices Act and most state rules of civil procedure, you can demand: the original signed credit agreement, every bill of sale showing the chain of ownership from the original creditor to the plaintiff, and a complete accounting from the date of last payment. Debt buyers often cannot produce these.
Step 4
Raise statute of limitations if applicable
Each state has its own clock for credit-card debt (3-6 years in most states), usually running from the date of last payment OR last activity on the account. If it has been more than 4 years since you last paid anything on this account, the statute of limitations defense is worth raising. Be careful: making a partial payment or even confirming the debt in writing can restart the clock in some states.
Step 5
Negotiate from a position of strength
Once you have filed an Answer and demanded proof, the debt buyer's economics shift - they paid pennies on the dollar and now have to spend lawyer time. Settlements at 10-30 cents on the dollar are common. Get any settlement in writing, include a satisfaction-of-judgment clause, and confirm the plaintiff will dismiss the case with prejudice.
Common questions
Should I just pay the full amount to make it go away?
Almost never. Most cases settle for 10-30% of the demanded amount once you demand proof. Paying in full also confirms the debt and can restart the statute of limitations on related accounts.
Will this affect my credit?
A filed lawsuit by itself doesn't show on consumer credit reports (those changed in 2017). A judgment also doesn't show. But the underlying delinquency does. Settling the judgment in writing with 'paid in full' or 'satisfaction of judgment' language helps a lot.
What if the debt is mine and they have all the documents?
Then negotiate. Debt buyers settle even strong cases because they paid pennies on the dollar and want to close the file. A reasonable opener is 30 cents on the dollar with a structured payment plan. Always get the agreement in writing and file it with the court.
Last reviewed: 2026-06-08. This guide is informational only and is not legal advice. Consult a licensed attorney in your jurisdiction before acting on any of the above.
