How to Get a Credit Card Lawsuit Dismissed?

Disclaimer: This article is for informational purposes only and should not be considered legal advice. For guidance specific to your situation, please consult a qualified attorney. Laws and procedures vary by state or jurisdiction; consulting an attorney is essential to understand the rules that apply to one’s location.

You open your mailbox, and there it is — a court summons for unpaid credit card debt. Your heart sinks, and panic starts to set in. But before you let anxiety take over, know that you’re not alone, as one in 20 adults with a debt in collections was sued in 2021.

If you’ve received a court summons, you may wonder how to get a credit card lawsuit dismissed and what options to address it. The good news is that a court summons is not the end of the road. Ignoring it is a mistake, though, and shouldn’t be considered.

Here’s an introductory guide for those facing a lawsuit over credit card debt, offering tips on responding to a court summons to improve the chances of winning the case. Please note that the following is for informational purposes only, and none constitutes legal advice. Speaking to a legal professional is your most effective bet for getting your debt collection case dismissed.

Understanding the Debt Lawsuit Process

Understanding the process is the first step to learning how to win a debt collection lawsuit. Generally, the process begins when a creditor files a complaint against you in civil court, and you’re served with a summons. If you don’t respond within the allotted time, the court may issue a default judgment against you. If you choose to respond, the case will move forward, with both sides presenting information and documents that support their claims.

There may be opportunities to negotiate or reach an agreement before the case goes to trial. If the case does not proceed to a court hearing, a judge or jury will review the evidence and decide based on the facts and applicable laws.

What Is a Court Summons for Credit Card Debt?

A court summons for credit card debt is a legal document issued by a court at the creditor’s request. It informs you that a lawsuit has been filed against you regarding an unpaid balance. Receiving a court summons means that the matter has escalated beyond phone calls and letters.

The summons typically outlines the details of the lawsuit, including: 

• The plaintiff is usually the creditor or collection agency suing you.
• Any co-defendants, such as joint card holders. 
• The amount owed, including any interest and fees. 
• A deadline by which you must file a response or appear in court. 

The summons package also includes the debt collector’s claims and the legal basis for the lawsuit.

Responding to the summons often requires filing a formal written answer with the court.

If the creditor obtains a default judgment, failure to respond to the summons can lead to serious consequences, such as wage garnishment or property liens. Many individuals in this situation find help by consulting an attorney to understand their rights, explore possible courses of action, and assess their chances of winning a credit card lawsuit.

Why Might a Credit Card Company Decide to Sue?

When you repeatedly ignore reminders about missed credit card payments, the debt collector may turn to court to recover them. Creditors may view lawsuits as a last resort after all other debt collection strategies have failed, although some file a lawsuit earlier.

Continuously missing payment deadlines shows creditors that you’re either unable or unwilling to repay the debt. Before resorting to legal action, creditors may attempt to resolve the issue through phone calls, letters, or emails. If those attempts fail, they may choose to pursue a lawsuit.

Collection agencies often employ more aggressive methods to recover the money, including more frequent calls and adverse reports to credit bureaus. This can further damage your credit score.

The decision to initiate a lawsuit often depends on factors like the size of the debt, your payment history, and the likelihood of successful recovery. Each case can differ, and if you’re unsure why you’re being sued, speak with an attorney who can explain potential reasons based on your circumstances.

How to Get a Credit Card Lawsuit Dismissed

Receiving a court summons for credit card debt can be intimidating. Different individuals respond in various ways, and understanding common approaches may help you improve your chances of winning a credit card lawsuit.

Step 1: Verify the Debt

Some individuals review all documents to ensure the debt and its amount are accurate and associated with their name. There is information that a debt collector must provide under the Fair Debt Collection Practices Act (FDCPA). Consult an attorney to determine if these rights apply to your situation. 

The original creditor, not a third-party debt collector, likely filed the lawsuit. That means the FDCPA probably won’t apply to the lawsuit, but many still want to verify the debt.

Step 2: Settle the Debt

Some people explore the option of settling the debt. This involves negotiating with the creditor or debt collection agency to reach an agreement in which you pay a portion of the debt, and they forgive the remaining balance. However, settlement outcomes vary and can be complex.

Understanding how to negotiate a judgment settlement is crucial for those taking this path. They may want to assess their financial situation or talk to a professional who can explain potential settlement scenarios. Those who speak to creditors risk forfeiting rights or accidentally agreeing to judgments. That’s another reason it’s wise to talk with an attorney before and during negotiation.

Step 3: Talk to a Credit Consultant

Credit counseling agencies can provide general financial advice and help you review your budget. They may suggest alternatives like a debt management plan (DMP). However, they typically cannot offer legal advice or directly influence ongoing lawsuits.

When you sign up for a DMP, your debts will be consolidated into a monthly payment you must make to the counseling agency. The agency will then distribute the funds to your creditors. 

If you’re unsure whether a DMP would help your situation, consider seeking advice from an attorney or financial advisor to understand the potential legal and economic impacts. Credit counselors will offer education and guidance, but they cannot personally stop a lawsuit already in progress.

Step 4: Going to Court

Those who believe they have a valid defense or dispute the creditor’s claims may decide to present their case before a judge. Common defenses involve questioning the accuracy of the debt amount, the creditor’s legal standing, or whether the debt is too old under state statutes. 

This path can lead to the dismissal of the lawsuit or a more favorable outcome, potentially increasing your chances of winning a credit card lawsuit. However, determining the validity of any defense requires legal expertise.

Individuals who receive a summons may have a limited timeframe to respond. When speaking with a lawyer, preparation often includes gathering documents related to the debt, such as payment records or correspondence for personal reference. 

Step 5: File Bankruptcy

Finally, if you receive a court summons for credit card debt, your last resort may be to file for bankruptcy. Bankruptcy can halt the legal proceedings through an automatic stay, which stops most creditors from pursuing collection actions.

There are two main types of personal bankruptcy. Chapter 7 bankruptcy involves liquidating non-exempt assets to pay off one’s debts. It’s more suitable for individuals with limited income who cannot repay even a portion of their unsecured debts. They usually keep most of their key assets due to exemptions, and unsecured debts are discharged within a few months.

Chapter 13 bankruptcy, on the other hand, is designed for people with regular incomes who can repay a portion of their debts over time. It involves creating a court-approved repayment plan that lasts three to five years, after which remaining unsecured debts may be discharged. To begin bankruptcy, one must complete mandatory credit counseling from an approved agency within 180 days before filing.

It’s worth noting that filing for bankruptcy will have long-lasting consequences on one’s credit history, affecting the ability to secure new loans. A Chapter 7 bankruptcy remains on one’s credit report for 10 years, while a Chapter 13 bankruptcy stays for seven years. Additionally, not all debts are dischargeable. Obligations like student loans, certain taxes, alimony, and child support typically remain enforceable.

Consider speaking with a bankruptcy attorney to learn if this option suits your situation and understand the potential impact on your credit.

What If It’s Not Your Credit Card Debt?

Errors can happen anytime, even with court summons. When you receive the court summons, your debt might have passed through multiple debt collection agencies, which might have been a genuine mistake. The debt could belong to someone with the same name or who previously lived at your address.

Alternatively, the issue could stem from credit card fraud, a common form of identity theft in which someone uses personal information without your knowledge.

Those who discover the debt is not theirs must still respond to the summons to avoid a default judgment. That is a significant reason to send an official request to the creditor or collection agency to verify the debt. A legal professional can help ask for proof that the debt is legitimate.

Those who suspect that identity theft is the reason for the wrongful debt may consider:

• Filing a report to the Federal Trade Commission (FTC) at IdentityTheft.gov to create an official record.
• Submitting a report to local law enforcement to document the theft.
• Placing a fraud alert or credit freeze on credit reports to prevent further unauthorized activity.

Again, a legal expert can help in each step of the process.

Possible Outcomes: What Are the Chances of Winning a Credit Card Lawsuit?

The chances of achieving a favorable outcome in a credit card lawsuit depend on factors unique to each case. Courts make decisions based on the evidence provided, the accuracy of the creditor’s claim, and applicable state or federal laws. For instance, if the creditor struggles to produce proper documentation, if the statute of limitations has expired, or if there are errors in calculating debt, it may influence the court’s decision.

In some scenarios, individuals and creditors reach out-of-court agreements, such as settling the debt for a lower amount. In others, cases might be dismissed if the court finds insufficient grounds for the lawsuit to proceed. On the other hand, if the court rules in favor of the creditor, that outcome may allow them to pursue collection action, such as wage garnishment or placing liens on property.

Because every situation is different, many people find it helpful to consult with an attorney who can provide insights into how certain legal principles might apply in their case.

How to Negotiate a Judgement Settlement

In some cases, creditors may be open to accepting a lump sum payment that’s less than the total amount owed, or they might agree to a structured repayment plan. This kind of arrangement can potentially ease the financial burden and help avoid more severe collection efforts.

Negotiating involves clear and respectful communication with the creditor or their representative. Maintaining thorough records of all correspondence and keeping any agreements in writing to avoid misunderstandings later is better. While professionals such as financial advisors can offer general insights into these negotiations, seeking a qualified attorney for more tailored guidance is always more helpful.

How to Get a Credit Card Lawsuit Dismissed: FAQ

What Happens if I Ignore a Summons?

If you ignore a summons, the court might grant a default judgment in favor of the creditor. This could allow the creditor to pursue collections methods like wage garnishment or placing liens on your property. Many individuals find it beneficial to seek legal guidance before deciding how to respond.

Can a Lawsuit Be Dropped?

A lawsuit can sometimes be dismissed if the creditor lacks sufficient documentation to prove the debt, if the statute of limitations has expired, or if you and the creditor reach an agreement to resolve the matter. While these scenarios are possible, outcomes vary widely, so understanding the specifics of your situation can help clarify potential options.

How to Negotiate a Judgement Settlement?

Negotiating a settlement usually involves discussing repayment terms with the creditor or their representative. Sometimes, the creditor may agree to accept less than the total amount owed or to a structured payment plan that eases the financial burden. Staying organized, communicating clearly, and considering professional advice can help when exploring this option.

Do I Need a Lawyer for a Credit Card Lawsuit?

Although you are not legally required to hire a lawyer, professional legal guidance is highly advised. An experienced attorney can help clarify the applicable laws, assess potential defenses, and offer insights tailored to your circumstances. Ultimately, the decision depends on your confidence, the case’s complexity, and the potential stakes involved.

Wrapping Up

Receiving a court summons for credit card debt can be overwhelming, but you’re not alone. No matter what, you can make it through this situation. Confronting the problem may be challenging, but it is a step toward regaining control of your financial future.