What Are Your Options If You're Being Sued by a Credit Card Company?

Facing a Credit Card Lawsuit? Here's What You Need to Know

Receiving a lawsuit notice from a credit card company can be alarming, but it’s not the end of the road. If you're being sued over unpaid credit card debt, you still have several legal options that can protect your rights, finances, and peace of mind.

At West Legal Group, we help individuals across Texas respond to debt collection lawsuits and find long-term relief from overwhelming debt.

Why Am I Being Sued by a Credit Card Company?

Lenders and debt collectors often sue when:

• You’ve fallen behind on payments for several months

• You’ve ignored collection letters or calls

• The debt has been sold to a third-party collector

• The creditor wants a court judgment to garnish wages or place a lien on property

It’s important to act quickly. Ignoring the lawsuit can result in a default judgment, which gives creditors broad powers to collect—often without further notice.

Option 1: Respond to the Lawsuit

The first and most important step is to respond to the lawsuit by filing an Answer with the court before the deadline (typically within 20–30 days, depending on the state). This preserves your rights and prevents a default judgment.

If you’re unsure how to respond or what defenses may apply, consult a debt defense attorney at West Legal Group for guidance.

Option 2: Settle the Debt

In many cases, credit card companies are open to settlement—especially if you have:

• Limited income or assets

• A lump sum offer (often 40–70% of the debt)

• A clear hardship

Negotiating a settlement can help you avoid court and stop additional interest or attorney’s fees from accruing. We often assist clients in negotiating settlements for a fraction of what’s owed.