Who’s that knocking at the door? Why I am I being asked to sign for a letter?
You knew it was coming. For the past several months (or years), it’s been a struggle putting food on the table. Some months it just wasn’t possible to make ends meet without turning to credit cards. Kids need clothes, cars need repairs, and paychecks have been stretched thin. Maybe you lost a job, or had your hours cut back. Maybe you got unlucky and wound up needing to go to the doctor or dentist for something serious – and had nothing else to pay the bill with. While the credit cards closed the monthly gap for a while, you didn’t have the money to pay the credit cards.
So when the sheriff came knocking at your door with paperwork for you, or the mailman came by with a letter you had to sign for, you weren’t really surprised. You knew that you were going to get sued. Your only question is – what should you do now?
Hard Times
At the end of 2024, Americans collectively had approximately 1.21 trillion (yes – TRILLION) dollars’ worth of credit card debt(1). According to the consumer credit reporting agency TransUnion, the average amount of credit card debt per American is $6,455 as of February 2025(2). Keep in mind that’s an average – many people have a LOT more than that.
Given these uncertain and difficult economic times, it’s not surprising that people have had to turn to plastic to make ends meet. In a world where even Wal-Mart has to significantly raise prices due to uncertainty(3), regular people are feeling the pinch in their wallets.
I’ve Been Sued in a Credit Card Lawsuit. What Do I Do First?
The first thing to do when you’ve been sued is to read the paperwork you’ve received carefully. What court have you been sued in? In Pennsylvania, credit card lawsuits start at one of two places. The lawsuit will have been filed at either (a) the magisterial district court in the district your home is located, or (b) the Court of Common Pleas of your particular county. If you were sued in magisterial district court, you can search for your case at https://ujsportal.pacourts.us/CaseSearch. If you were sued at the Court of Common Pleas, go to Google and search for “prothonotary” and the name of your county. (If you were sued anywhere else, the Fair Debt Collection Practices Act (FDCPA) has been violated and you could sue the creditor and/or law firm that sued you. Contact a lawyer for this; he/she can represent you for free in FDCPA cases.)
Oftentimes, the first way you’ll learn about being sued is by receiving a ton of lawyer letters in the mail. Many are bankruptcy lawyers, but many also defend lawsuits for consumers. Save the letters; they could be useful to you later on, after you decide your best move.
Ok, I Know What Court I’ve Been Sued In. What Now?
The second thing to do is to figure out whether or not a hearing date been set, and how much time you have to respond to the lawsuit. In the paperwork you received, it will say if a hearing date has been set. Usually, hearing dates are set automatically in both the magisterial district courts and at the Courts of Common Pleas. Make a note of these, because you don’t want to get a judgment against you by default (this happens if you do nothing).
In the magisterial district courts, you must call and tell the court if you intend to defend the case ahead of the scheduled hearing. If you don’t and you just show up at the hearing, the hearing will be rescheduled to a new date to let the creditor send a lawyer. Even if you don’t think you have a defense, you are better off telling the court that you intend to defend. Telling the court you intend to defend, but need more time to find a lawyer, can also be a way to buy yourself more time. (You’re also much better off if you DO hire a lawyer!)
In the Court of Common Pleas, you must respond to the complaint within twenty (20) days of being served.
Alright, I Know the Hearing Date and How Much Time I Have. What Now?
The next thing to do is to figure out what kind of company sued you. Is it your original creditor? Or is it some company you never heard of? The answer to this question is going to decide the best strategy for you going forward. If you’ve been sued by your original creditor, your best bet is going to be to negotiate a settlement, enter into a payment plan, or possibly file for bankruptcy (if your overall debts are large enough to make it worthwhile). If you’ve been sued by a debt buyer – that is, a company your original creditor sold your debt to – you should defend the case and get the debt eliminated with a lawyer’s help.
The reason for these different strategies is because of the different amount of evidence an original creditor has compared to a debt buyer. Your original creditor will have the original credit card contract and all of your monthly statements. A debt buyer is unlikely to have these things, although it might have some. Additionally, a debt buyer has to prove that it bought YOUR SPECIFIC DEBT. They are unlikely to be able to do this, because debt buyers purchase thousands of debts at a time (for pennies on the dollar). There generally isn’t a piece of paper that shows your particular debt was included in the massive portfolio of people’s debts that was bought on a particular day.
Ok, I Think I Know The Best Strategy For Me. What Now? Do I Hire A Lawyer?
HIRE A LAWYER. A lawyer is going to be able to defend you in a hearing with debt buyers and, through effective legal arguments, likely get the debt eliminated. A lawyer is going to be able to use relationships he or she already has to negotiate a better settlement payoff or payment plan that you would be able to.
Can’t I Handle This Credit Card Lawsuit Myself? Do I Really Need A Lawyer?
You CAN handle a credit card lawsuit yourself, but it’s a terrible idea. If you show up at a legal hearing on your own, the lawyer on the other side is going to use you as a witness against yourself. Mr./Ms. Jones, did you take out a credit card with XYZ Bank? Where do you live? Isn’t that the address shown in this credit card statement? Did you receive this statement? Did you make these charges? Setting hearings aside, if you respond to paperwork on your own, you’re likely to admit to something that you shouldn’t.
If you hire and send a lawyer to the hearing, the creditor’s lawyer can’t use you to support its case. A lawyer isn’t going to accidentally have you admit something in paperwork that you shouldn’t. And with respect to negotiating settlements and payment plans, lawyers that defend credit card lawsuits regularly develop relationships with collection law firms. As a result, they can usually get you better outcomes than you could get on your own.
Can I Talk To You About My Case?
Yes. Please reach out. We offer free initial consultations and would be happy to speak with you.
References:
1 https://www.forbes.com/advisor/credit-cards/average-credit-card-debt/
2 https://www.transunion.com/content/dam/transunion/global/business/documents/fs2025/february-monthly-snapshot.pdf
3 https://www.usatoday.com/story/money/2025/05/15/walmart-higher-prices-tariffs/83643124007/
