If you fall behind on payments, the creditor might take legal action by filing a lawsuit. They may also sell your debt to a debt buyer. The debt buyer can then sue you for the unpaid amount.

If a lawsuit is filed, you will get official court papers called a Summons and a Complaint. These papers explain the lawsuit and how much the creditor or debt buyer says you owe.  The Summons will include your court date and how to attend court, in-person or by video conference.  You may need to file a form, like an Appearance, with the court. 

👉 Learn more about the Summons.

If you do not show up for your hearing or if the debt collector wins the case, the debt collector will get a judgment against you. A judgment allows the debt collector to take some of your property to repay the debt.  This includes: 

• Taking up to 15% of your paycheck (but at least $675 of your weekly take-home pay is protected),
• Freezing your bank account, and
• Putting a lien on your home, if you own one.

If a judgment was entered against you after 1/1/2020, $1,000 of the money in your checking or savings accounts is automatically protected until the court hears the post-judgment citation.