If a credit card company sues you and you do nothing, you will lose. Not eventually. Almost every time. Once that happens, the credit card company can take money straight out of your paycheck or freeze your bank account. Many Florida families do not know this until it has already happened to them.
Credit card debt does not go away when you stop opening the mail. It grows. It grows through interest, late fees, and court costs, and it grows fast once a lawsuit starts. The good news is that you have options, even after you get served. Chapter 7 bankruptcy can stop a lawsuit in its tracks, wipe out most credit card debt, and give your family a real chance to start over.
This post walks through what happens when a credit card lawsuit gets ignored, why the cost keeps climbing the longer you wait, and how bankruptcy can put a stop to it.
What Happens When a Credit Card Company Sues You in Florida
The Summons and Complaint
When a credit card company or a debt buyer decides to sue you, you get served with two documents: a summons and a complaint. The summons tells you that you are being sued and gives you a deadline to respond. The complaint lays out who is suing you, how much they say you owe, and why.
Debt buyers like LVNV Funding, Midland Credit Management, and Portfolio Recovery Associates often buy old credit card debt for pennies on the dollar, then sue for the full amount plus interest. Original credit card companies such as Capital One, Citibank, Bank of America, and Discover also file lawsuits directly when an account goes unpaid long enough.
The 20-Day Deadline to Respond
Once you are served in Florida, the clock starts ticking. You have 20 days to file a written response with the court, called an Answer. Missing this deadline is the single biggest mistake people make. It is also the easiest one to avoid, since all it takes is filing a document with the court on time.
Default Judgments Explained
If you do not respond within 20 days, the credit card company can ask the judge for a default judgment. The judge will grant it without hearing your side of the story at all. Once a judge signs off on a default judgment, the credit card company stops being just a creditor. It becomes a legal authority that can take action against your paycheck, your bank account, and even property you own, all without another court hearing.
The Real Cost of Ignoring a Credit Card Lawsuit
Wage Garnishment Takes a Chunk of Every Paycheck
Once a judgment exists, Florida law allows creditors to garnish up to 25 percent of your take-home pay. That means every payday, a piece of your income goes straight to the credit card company instead of your family. This can continue for months or years until the debt is paid off.
Bank Levies Can Freeze Your Account
A bank levy works differently than garnishment, but it hurts just as much. With a levy, the creditor can freeze your bank account and pull out funds to pay the judgment. Many people find out about a levy only after they try to use a debit card and it gets declined. There is often no warning before it happens.
Interest and Fees Keep Piling On
A judgment does not sit still. It grows through post-judgment interest and added court costs, which in Florida can run anywhere from $500 to $1,000 on top of what you already owe. A credit card debt that started at $3,000 can turn into $4,500 or more once fees and interest get added. Wait even longer, and that same debt can climb past $7,000.
Your Credit Score Takes a Hit
A judgment and a collection account on your credit report can drop your score by 100 to 150 points. That damage sticks around for seven years from the date the account first became late. During that time, it can be harder to rent an apartment, get approved for a car loan, or qualify for a mortgage. Some employers even check credit reports during hiring, so a judgment can follow you into a job search too.
Why Waiting Costs You Your Negotiating Power
Settlement Offers Disappear After Judgment
Here is something most people do not realize. Before a judgment, credit card companies and debt buyers often want to settle. Since they bought the debt cheap or know that lawsuits are expensive to chase, they will frequently take 30 to 50 percent of what you owe just to close the account. Once a judgment gets entered, all of that changes. The creditor already won in court, so there is no reason for them to offer you a discount anymore. Your only choices become paying the full amount or living with garnishment and levies.
The Debt Grows the Longer You Wait
Every month you avoid the problem, the numbers get worse. Interest keeps adding up. Court costs keep adding up. The debt that once felt manageable becomes a debt that feels impossible. Acting early, before a lawsuit even reaches judgment, gives you the most options and the most leverage. Waiting takes all of that away.
How Chapter 7 Bankruptcy Can Stop a Credit Card Lawsuit
The Automatic Stay Stops Collection Immediately
The moment you file for Chapter 7 bankruptcy, something called an automatic stay goes into effect under federal law, 11 U.S.C. Section 362. This stay stops the lawsuit, stops wage garnishment, stops bank levies, and stops collection calls right away. Creditors are not allowed to contact you or take money from you once the stay is active. If they break this rule, you can sue them for actual damages and an added $1,000 for each violation.
What Debts Get Wiped Out
Most credit card debt qualifies for discharge in a Chapter 7 case. A discharge means the debt is legally erased and the creditor can never collect on it again. Medical bills, personal loans, and most other unsecured debts get wiped out the same way. A small number of debts do not qualify, including child support, alimony, recent taxes, and most student loans, under 11 U.S.C. Section 523(a).
What You Get to Keep
Filing Chapter 7 does not mean losing everything you own. Federal and state exemptions, found under 11 U.S.C. Section 522(b), let you protect things like your home equity up to certain limits, your car, and your retirement accounts. Many people who file end up in what is called a no-asset case, meaning there is nothing left for the trustee to take. You keep your property and still get the discharge.
Most cases also move fairly fast. You attend a creditors’ meeting within 21 to 40 days of filing, and a discharge usually comes 60 to 90 days after that. The filing fee is $395, and if you cannot pay it all at once, you can ask to pay it in installments or request a fee waiver if your income is low enough.
What To Do If You Get Served With a Credit Card Lawsuit
If papers show up at your door, do not throw them away and hope the problem disappears. Here is what to do instead.
- Read the summons and complaint the same day you receive them, so you know your deadline.
- Write down the 20 day deadline and do not let it pass.
- Look into whether the debt might be past the statute of limitations or if you were served incorrectly.
- Talk to a bankruptcy attorney about whether Chapter 7 could stop the lawsuit and clear the debt.
- File your Answer with the court if you decide to fight the lawsuit directly.
Frequently Asked Questions
Can a credit card company really take money straight from my paycheck?
Yes, once they win a judgment against you. Florida law allows creditors to garnish up to 25 percent of your take-home pay until the judgment is paid off. This does not happen before a judgment, though, so the fastest way to avoid it is to respond to the lawsuit or file for bankruptcy before that judgment gets entered.
Will filing bankruptcy stop a credit card lawsuit that is already in progress?
Yes. The moment you file for Chapter 7, the automatic stay stops the lawsuit right where it stands. This works even if a hearing is scheduled or a judgment is close to being entered. It will not undo a judgment that already exists, but it stops any new action and can still wipe out the underlying debt through discharge.
What happens to my credit score if I file Chapter 7 instead of letting the lawsuit continue?
Your credit score will take a hit either way, but a judgment sitting on your report for years while garnishment continues is often worse in the long run. Chapter 7 shows up on your credit report for up to 10 years, but many people start rebuilding their score within a year or two of filing since their debt-to-income situation improves right away.
Contact a Post-Judgment Credit Card Debt and Bankruptcy Attorney
Ignoring a credit card lawsuit in Florida almost always makes things worse. A missed deadline turns into a default judgment. A default judgment turns into garnishment, frozen accounts, and a credit score that takes years to recover. The debt itself grows the entire time through interest and fees, while your chance to settle for less disappears.
Chapter 7 bankruptcy gives Florida families a way to stop this cycle. The automatic stay halts collection the moment you file, most credit card debt can be discharged, and exemptions let you keep the property that matters most. If you have been served with a lawsuit or you are already dealing with garnishment, do not wait for things to get worse. Call My Affordable Attorney at (866) 4-ONLY 25 for a free consultation and find out what your options really are.