Get basic instructions on how to respond to a civil summons for credit card debt

Being in serious debt can be scary. While it can be easy to dismiss bills and ignore calls from debt collectors, there are consequences for not paying what you owe. When a company has exhausted its resources trying to make you pay a debt, it will try to sue you for the credit card debt, or sell your debt to another company. This company can also sue you to force payment.

How do you know that you are being sued for a debt?

Civil summons can be filed when you default on an unsecured loan, or fail to pay a credit card and are moved to “charged off” status. Debt is basically considered a loss by the original lender or creditor.

When you are served with a summons for a debt, someone will usually come to your home or work, ask for your name, and present you with a civil summons. At this point, it is better not to freak out and understand that it is time to face your debt.

Look at the summons, and see who is suing you to try and collect a debt. Is it a credit card company, a company that bought the debt, or another creditor with whom you are in arrears?

Once you know this, you can start gathering any information and documentation you have on the debt, including verifying that the debt is actually yours, and also how long you have owed the money. You should also evaluate your current financial statements to understand your budget and what a lawsuit or settlement may cost you.

If you know the debt is valid, check your statements to see when the last time you paid something to the creditor was. It is important to look at how old the debt you are trying to collect from you is. States have certain rules about how long collectors can try to collect a debt; this is known as the "statute of limitations."

Once a debt passes the statute of limitations, collectors cannot sue you to pay that debt.

Three ways to respond to a civil court summons for credit card debt

When you have been sued for your debt, there are three things you can do:

1. Ignore It
2. Try to pay off the debt
3. Go to court

While it is an option, DO NOT IGNORE THE DEMAND! Ignoring the summons sets you up for a host of other problems, including wage garnishments and bank account charges, and property liens. If you do not respond, ignoring the situation, a verdict may be entered against you. Ignoring a lawsuit will not protect you from the negative results you may face in court!

Therefore, you can solve it or go through the court system. Ideally, you should try to figure it out first, and go through court only if that fails. However, you have a limited amount of time to respond to a civil summons. So, look at the call to see when you need to submit a response. Make sure to handle the case before then to avoid further legal trouble.

Step 1: How to respond to a civil summons for credit card debt upon settlement

First, you should try to contact the creditor named in the summons, and come to an agreement without going to court.

Before calling, review your finances and create a budget. How much do you owe and how much can you pay? Sometimes creditors will accept a reduced amount of what you owe, usually in a lump sum. Also, some may be willing to accept a small series of payments. Agreements typically range from 40% to 80% of what you owe, depending on how old the debt is and who the creditor is.

If the debt still belongs to the original creditor, expect to pay more in a settlement. If the debt was sold to a collector, he may take a smaller amount, as he probably bought the debt at a discount. As for your budget, it can help you determine your position during the negotiation. Have an amount ready that you are willing to pay when you call and work with the creditor from there.

If the creditor does not speak with you, make this call with the attorney named in the lawsuit.

The settlement is usually the best option. If you settle the debt out of court, the creditors and their attorneys can drop the case. You can avoid the hassle of formally filing an answer with the court.

Step 2: How to respond to a civil summons for credit card debt by filing an answer with the court

If an agreement cannot be reached, or you decide that you prefer to go to court, you must file an answer to the subpoena. Please note that you will need to submit your request within 30 days of receipt of the letter, including holidays and weekends, according to the California Judicial Council. This time limit may vary depending on where you live. So be sure to check your summons for the exact time required by the state you live in.

Within the summons packet you received, there should be a complaint with a list of allegations against you. It is your job to “answer” these allegations in writing and send them to court before the date indicated. Within the allegations, there will be a section that indicates that you are the owner of the debt and what is the amount of the debt, among other things.

This is where it is again important to have your documents on hand to review the information you have. In this way, you can confirm or deny the accusations brought against you, depending on the information you have.