Will Credit Card Companies Sue Me?

Not every delinquent account results in a lawsuit, but it is a real possibility — particularly for larger balances. Creditors and the collection agencies or debt buyers they sell accounts to have the legal right to sue for unpaid debt.

• Larger balances are more likely to be pursued in court, since litigation costs money
• Longer periods of non-payment without any negotiation contact
• State statutes of limitations that haven't yet expired on the debt

You'll be formally served with a summons and complaint. You must respond by the deadline stated — usually 20–30 days depending on your state — or the creditor can win by default judgment, which can lead to wage garnishment or bank levies.

Yes — many lawsuits are settled before or even during litigation. Being served doesn't eliminate the possibility of a negotiated resolution, though it does add legal costs and urgency to the situation.

• Respond promptly to any creditor or collector communication
• Keep your program administrator informed of any legal notices immediately
• Consider prioritizing larger, higher-risk balances earlier in a settlement program

Never ignore a summons. Read our guide on how to respond to a lawsuit, and consult a consumer law attorney if you're unsure how to proceed — many offer free consultations for debt-related cases.