7 Steps to Take After Being Sued by Discover

That thick envelope in your mailbox confirms your fear: you're being sued by Discover. It's a moment that can make you feel completely powerless, especially when you see the strict deadline for a response. But taking a deep breath and making a plan is your most powerful first move. The worst thing you can do right now is nothing. This article is your playbook for turning that feeling of being overwhelmed into a sense of control. We will break down the entire process into simple, manageable actions, from reading the Summons and Complaint to filing your official Answer with the court. You have rights, and you have options. Let's get you started on the right path.

Key Takeaways

• Prioritize Your Response Deadline: Your first and most important task is filing a formal Answer with the court before the deadline on your Summons. Missing it leads to a default judgment, giving Discover the power to take money directly from your paycheck or bank account.
• Challenge the Debt's Validity: You have the right to make Discover prove they have a case. Filing a response and demanding debt validation shifts the burden of proof to them, forcing them to provide documentation that the debt is yours and the amount is accurate.
• Explore Your Resolution Options: A lawsuit doesn't automatically mean a court battle. You can take control by negotiating a settlement, setting up a payment plan, or using a service to help you prepare and file your response, all of which can resolve the issue without a judgment.

Why is Discover Suing You?

Receiving a lawsuit notice from Discover can feel overwhelming and personal, but it's important to understand that this is a standard business process. Discover Bank, like any creditor, uses lawsuits as a final tool to collect on debts it believes are owed. This usually happens after months of trying to contact you through letters and phone calls. The lawsuit is their formal, legal way of saying they want their money back.

Most often, these lawsuits are over unpaid credit card balances, but they can also be for personal or student loans. While Discover has a good rating with the Better Business Bureau, it also receives thousands of complaints about its collection practices. If you've been sued, you're not the first, and you certainly won't be the last. The key is to understand the process and take action to protect your rights.

What is Discover's Collection Timeline?

A lawsuit doesn't happen overnight. It’s the last step in a predictable timeline that begins the first time you miss a payment. While every situation is different, the path to a lawsuit generally follows a few key stages. Typically, credit card companies sue when a balance is significant, often over $2,700.

After 30 days, you’ll get a late fee. By 60 to 90 days, the calls and letters increase, and the late payment hits your credit report. Around 120 days, your account may be sent to an internal collections department. The most critical point is at 180 days (six months) of non-payment. At this stage, your account is usually "charged off." This is an accounting term meaning the bank considers the debt a loss, but it doesn't mean you no longer owe it. In fact, this is when the risk of a lawsuit becomes very high.

Common Reasons for a Lawsuit

The simplest reason for a lawsuit is delinquency. According to Discover, delinquency occurs when you miss a payment or pay less than the minimum amount due. Once your account becomes delinquent, a clock starts ticking. Each missed payment pushes the account further down the collections path.

While it might feel like you're being singled out, the decision to sue is often automated and based on factors like the size of your debt and how long it has been overdue. The goal of the lawsuit is straightforward: to get a court order, called a judgment, that legally forces you to pay the debt. This gives them more powerful tools to collect, which is why it's so important to respond to the lawsuit.

What Happens Before the Lawsuit?

Before filing a lawsuit, Discover will make numerous attempts to collect the debt. You’ve likely already received a steady stream of letters, emails, and phone calls. These communications are their initial attempts to get you to pay or set up a payment plan. The lawsuit is what happens when those attempts fail.

The single most important thing to remember is that you must respond to the lawsuit. Ignoring it will not make it disappear. In fact, ignoring it is the worst thing you can do. If you don't file a formal Answer with the court by the deadline, Discover will almost certainly win automatically by getting a "default judgment" against you. The Federal Trade Commission strongly advises consumers to respond when a debt collector sues to preserve their rights.

What Are Your Legal Rights?

Getting sued can make you feel powerless, but it’s important to remember that you have rights. The law provides specific protections for people dealing with debt collectors, and understanding them is the first step toward taking control of the situation. You have the right to be treated fairly, the right to challenge the lawsuit, and the right to demand proof that you actually owe the money.

Knowing these rights helps you form a plan instead of panicking. Federal and state laws create a framework that ensures debt collectors can't use abusive or unfair tactics to pressure you. This section will walk you through your key protections, from federal laws that shield you from harassment to the critical deadlines you need to meet and how you can make Discover prove its case.

Disclaimer: This guide provides general information and is not a substitute for legal advice. LawLaw is not a law firm and does not provide legal advice.

Know Your Federal Protections

You are protected by a powerful federal law called the Fair Debt Collection Practices Act (FDCPA). This law was created to stop abusive, unfair, or deceptive practices by debt collectors. It clearly defines what collectors can and cannot do when trying to collect a debt. For example, under the FDCPA, a debt collector cannot harass you by calling repeatedly, use obscene language, or call you before 8 a.m. or after 9 p.m. without your permission. They also can't lie about the amount you owe or threaten you with actions they can't legally take, like having you arrested. Knowing these rules helps you identify improper behavior and stand up for yourself.

Check Your State's Deadlines

When you receive a lawsuit, the clock starts ticking. The most important document you'll get is the Summons, which officially notifies you of the lawsuit and tells you how long you have to respond. This deadline is not a suggestion—it's a legal mandate. Depending on your state's laws, you typically have between 14 and 30 days to file a formal response, called an Answer, with the court. Ignoring this deadline is the worst thing you can do. If you don't respond in time, Discover can ask the court for a default judgment against you, meaning you automatically lose the case without ever getting a chance to tell your side of the story.

How to Request Debt Validation

Just because a company says you owe them money doesn't mean you should take their word for it. You have the right to make them prove it. This process is called debt validation. By sending a formal request, you force the debt collector to provide evidence that you owe the debt, that the amount is correct, and that they have the legal right to sue you for it. This is a critical step that can sometimes reveal errors, like incorrect amounts or mistaken identity. To do this properly, you should send a written Debt Validation Letter to the law firm suing you. This simple action puts the burden of proof back where it belongs: on the collector.

First Steps: What to Do Immediately

Seeing a lawsuit with your name on it is jarring, but what you do in the first few days is critical. Taking a moment to pause, breathe, and get organized will put you in the best possible position. Don't let fear or uncertainty lead to inaction. The clock starts ticking the moment you receive the paperwork, and your immediate goal is to understand what's happening and prepare to respond. We'll walk through the first four things you need to do right away to protect your rights and get control of the situation.

Read the Summons and Complaint

The first documents you need to focus on are the Summons and the Complaint. Think of the Summons as an official invitation to court—it’s the legal document telling you that you’ve been sued. The Complaint is the document that explains why you’re being sued. It will outline who is suing you (Discover), how much they believe you owe, and other details about the debt.

Most importantly, the Summons will state your deadline to respond. This is the most critical piece of information in the entire packet. Depending on your state, you typically have between 14 and 30 days to file a formal Answer with the court. Find that date and circle it. Everything else you do will revolve around meeting this deadline.

Verify the Debt is Yours

Before you do anything else, confirm that the debt Discover is suing you over is actually yours and that the amount is correct. Mistakes are more common than you might think, especially if the debt has been passed between different departments or agencies. Pull out any records you have, like old credit card statements or emails, and compare them to the details listed in the Complaint.

If you have questions or aren't sure the debt is valid, you can formally ask for proof. One way to do this is by sending a Debt Validation Letter, which requires the collector to provide documentation proving you owe the money. Check the account numbers, the original debt amount, and any listed fees to ensure everything lines up with your own records.

Don't Miss Your Deadline

Ignoring a lawsuit is the one thing you absolutely cannot do. If you fail to file a response with the court by the deadline, Discover can ask for—and will likely win—a default judgment against you. A default judgment means you automatically lose the case simply because you didn't show up to defend yourself. It gives the creditor the legal power to pursue more aggressive collection methods.

Meeting your deadline is your first and most powerful move. It tells the court and Discover that you are taking this seriously and intend to participate in the process. Even if you’re unsure about your next steps or think you can’t win, filing an Answer keeps your options open. It gives you time to negotiate, challenge the debt, or find the right help for your situation.

Gather Your Documents

Now is the time to get organized. Create a dedicated folder, either physical or on your computer, for everything related to this lawsuit. Having all your paperwork in one place will reduce stress and help you build your response. Start by putting the Summons and Complaint in this folder.

Next, gather any documents you have related to your Discover account. This includes old account statements, records of payments you’ve made, and copies of any letters, emails, or notes from phone calls you’ve had with Discover or any collection agency representing them. The more information you have, the better prepared you'll be to draft your official Answer and defend your case. This simple act of organizing can make the entire process feel much more manageable.

How to Respond to the Lawsuit

Once you’ve read the paperwork and gathered your documents, it’s time to take action. Responding to the lawsuit is a formal process that involves creating a legal document called an "Answer" and submitting it to the court. This is your official opportunity to challenge the lawsuit and protect your rights. Ignoring the Summons won't make it disappear; in fact, it's the fastest way to lose automatically.

The good news is that you don't have to be a legal expert to respond. The process involves four main steps: drafting your Answer, raising your defenses, filing the document with the court, and serving a copy to Discover's attorneys. Each step has specific rules and deadlines, so it’s important to be methodical. Think of this as your playbook for standing up to the lawsuit and making the collector prove their case. By responding, you shift the burden of proof back onto Discover and give yourself a fighting chance to reach a better outcome.

Draft Your Official Answer

Your first step is to prepare your official "Answer." This isn't just a simple letter; it's a formal legal document where you respond to each claim made against you in the Complaint. For every numbered paragraph in the Complaint, you must state whether you admit, deny, or lack the knowledge to respond to the allegation. This is your chance to formally tell your side of the story. The formatting and language must follow court rules, which can feel overwhelming. To simplify this, you can use a guided online process to generate a properly formatted Answer that is tailored to your specific case.

Raise Your Legal Defenses

Within your Answer, you must also state your "affirmative defenses." These are the legal reasons why Discover shouldn't win the case, even if you owe the debt. For example, the statute of limitations may have expired, the amount they're suing for could be incorrect, or they may not have the legal right to sue you. When you respond, the debt collector has to prove their case. It's crucial to include these defenses in your initial Answer, as you might lose the right to use them later. Common defenses include incorrect debt amount, prior payment, or identity theft.

File Your Answer with the Court

After drafting your Answer, you must file it with the correct court before the deadline listed on your Summons. This deadline is non-negotiable, typically ranging from 14 to 30 days. Filing usually involves taking the document to the court clerk's office and paying a filing fee, though some courts allow for e-filing. As the Federal Trade Commission advises, responding to the lawsuit is what protects your rights. Failing to file on time will likely result in a default judgment against you, giving Discover the power to garnish your wages or freeze your bank account.

Serve Discover with Your Response

Finally, you must formally deliver a copy of your filed Answer to the plaintiff—in this case, the attorney or law firm representing Discover. This step is called "service of process," and it proves to the court that you notified the other party of your response. Each court has specific rules for how to do this properly, which often involves sending the documents via certified mail. Be sure to keep detailed records and proof of delivery for all correspondence. This final step completes your official response and ensures the case can move forward with your participation.

What Happens If You Don't Respond?

Receiving a lawsuit is stressful, but the single worst thing you can do is ignore it. When you don't file a formal response with the court by the deadline, you give up your right to defend yourself. Discover’s lawyers will then ask the court for an automatic win, and the judge will almost certainly grant it. This is called a default judgment, and it’s a legally binding court order that gives Discover powerful tools to collect the money they claim you owe.

A default judgment turns a simple debt claim into a court-enforced order. This means Discover no longer has to just ask you for the money—they can use the legal system to take it. This can lead to serious consequences, which the Federal Trade Commission warns can include having your wages taken, your bank accounts frozen, and even liens placed on your property. Responding to the lawsuit is your only opportunity to tell your side of the story and protect your finances from these aggressive collection methods. Even if you believe you owe the debt, filing an Answer preserves your options for negotiation and settlement. It keeps you in control of the process rather than letting a default judgment make all the decisions for you.

What is a Default Judgment?

Think of a lawsuit as a conversation with the court. Discover starts the conversation by filing a Complaint, and you continue it by filing an Answer. A default judgment happens when you never answer back. Because you didn't participate, the court assumes you don't contest Discover's claims and rules entirely in their favor. It’s an automatic loss. This isn't just a mark against you; it's a powerful legal tool that transforms an unproven allegation into an enforceable debt. With this judgment, Discover can move forward with seizing your assets without any further input from you.

Can They Garnish Your Wages?

Yes. Once Discover has a default judgment, one of the most common collection methods they use is wage garnishment. This is a court order sent directly to your employer, requiring them to withhold a certain percentage of your paycheck and send it directly to Discover. You don't have a say in the matter—your employer is legally obligated to comply. While federal and state laws place limits on wage garnishment, it can still represent a significant and sudden loss of income that you depend on for daily living expenses. This continues until the entire debt, plus any court fees and interest, is paid in full.

Can They Freeze Your Bank Account?

Yes. A default judgment also gives Discover the right to levy your bank account. They can send the court order to your bank, which must then freeze your account and turn over funds to pay off the debt. This can happen without any direct warning to you. You might go to pay a bill or buy groceries only to find your card declined because your funds are gone. The bank can seize money from your checking and savings accounts up to the full amount of the judgment. This can disrupt your ability to pay rent, utilities, and other essential bills, creating a serious financial crisis.

How a Lawsuit Affects Your Credit

Ignoring a lawsuit from Discover delivers a double blow to your credit. First, the original unpaid debt that led to the lawsuit has likely already damaged your credit score and will remain on your credit report for up to seven years. Second, the default judgment itself becomes a new negative item on your report. A judgment is a public record that signals to future lenders, landlords, and even some employers that you have a history of not paying your debts. This can make it extremely difficult to get approved for a car loan, mortgage, or even a new apartment for years to come.

How Can You Resolve the Lawsuit?

Once you’ve been served with a lawsuit, it can feel like your options are limited, but that’s rarely the case. You have several paths you can take to resolve the situation, and a courtroom battle isn't the only outcome. The key is to act strategically and choose the approach that best fits your financial situation. You can negotiate a settlement, arrange a payment plan, or formally challenge the lawsuit in court. Each option has its own process and potential benefits. Understanding these choices is the first step toward taking control of the situation and working toward a resolution that protects your financial future.

Settle the Debt Out of Court

Often, the most direct path to resolution is negotiating a settlement. Discover may be willing to accept a lump-sum payment that is less than the total amount you owe. This is because going to court costs them time and money, and a settlement guarantees they recover some of their losses. For example, some people have successfully negotiated their debt down significantly, turning a $7,600 balance into a $4,275 settlement. You can start this process by contacting the law firm representing Discover. If you’re not comfortable negotiating yourself, a debt settlement attorney can handle the communication and help you secure a favorable agreement. Always get the final settlement terms in writing before you send any payment.

Set Up a Payment Plan

If you can’t afford a lump-sum settlement, proposing a payment plan is another strong option. This shows you’re willing to pay the debt and can be enough to halt the lawsuit. Contacting the collection company or law firm to discuss a manageable monthly payment can prevent the case from moving forward, helping you avoid a default judgment and potential wage garnishment. When you negotiate, you can also ask them to stop adding interest and fees to your balance. Just like with a settlement, it is absolutely critical to get the final payment plan agreement in writing before you start making payments. This document protects you and ensures both parties are clear on the terms.

Challenge the Debt's Validity

Responding to the lawsuit is your formal way of telling Discover, "You need to prove it." When you file an Answer with the court, the burden of proof shifts to them. The debt collector must legally prove that you owe the debt, the amount is accurate, and they have the right to sue you for it. This is a fundamental consumer right. You can challenge the debt by asking for proof that they own it and that it isn't too old to be collected under your state's statute of limitations. Sometimes, collectors don't have the proper documentation and may drop the case if you challenge them. This makes filing a response a powerful first move.

What Paperwork Do You Need?

Staying organized is your best defense. Start by gathering every piece of paper related to the lawsuit and the original debt. The most important document is the Summons and Complaint you received, as it contains your case number and, most importantly, the deadline to respond. Beyond that, collect any past statements from Discover, letters or emails from the debt collector, and notes from any phone calls you’ve had with them. Keeping detailed records of all communication is crucial. If you decide to negotiate, having this information on hand will support your position and help you track every step of the process, ensuring nothing gets lost in the shuffle.

How to Protect Your Money and Assets

When you’re facing a lawsuit, your biggest worry is often about your money. Will they take your car? Can they empty your bank account? These are valid fears, but you have rights and protections. Understanding them is the first step toward safeguarding your financial stability. The key is to be proactive. By responding to the lawsuit, you put yourself in a much stronger position to protect what’s yours. Ignoring the problem won't make it disappear; in fact, it gives the creditor more power. Let's walk through what’s protected and how you can keep your assets safe.

What Income is Protected?

You may have heard the term "judgment-proof." This generally means a creditor can't collect from you because your income and assets are legally protected from seizure. Certain types of income, like Social Security, disability, and veterans' benefits, are often exempt under federal law. However, being judgment-proof isn't always a permanent shield. A creditor can win a judgment and wait, hoping your financial situation improves later. That's why simply hoping they can't collect isn't a strategy. It's crucial to understand which of your assets are protected and to formally respond to the lawsuit to defend your rights from the start.

Keep Your Bank Account Safe

The single biggest threat to your bank account is a default judgment. This happens when you fail to respond to the lawsuit within your state's deadline. If you don't file an Answer, Discover automatically wins, and the court grants them a judgment. With that court order, they can take serious collection actions, like garnishing your wages or levying your bank account, which means taking funds directly out of it. They could also place a lien on your property. The most effective way to prevent this is to participate in the legal process. By responding to the lawsuit, you force Discover to prove their case and keep control over the situation, preventing them from getting an easy win and direct access to your money.

Know Your Rights After a Judgment

Even if a judgment is entered against you, you still have rights. But asserting them starts with your initial response to the lawsuit. When you file an Answer, you make the debt collector do their job. The burden of proof is on them, not you. They must legally prove to the court that you actually owe the debt, that the amount they're claiming is accurate, and that they have the legal standing to sue you for it. Many collection lawsuits rely on consumers not showing up. By simply responding, you can challenge their claims and protect your financial interests. This official response is your opportunity to raise defenses and ensure your side of the story is heard by the court.

Where to Find the Right Help

Facing a lawsuit can feel isolating, but you don’t have to handle it alone. Depending on your comfort level and the complexity of your situation, you have several options for getting support. The key is to choose a path that helps you respond correctly and on time, protecting your rights along the way.

Find DIY Legal Resources

If you’re comfortable handling things yourself, there are excellent resources available to guide you. The federal government provides protections against unfair debt collection practices through the Fair Debt Collection Practices Act (FDCPA). This law gives you specific rights, like the ability to dispute the debt and stop collectors from contacting you at inconvenient times. Understanding these protections is a powerful first step in building your response. You can find reliable guides and document templates on government and consumer advocacy websites that walk you through the legal process and explain what’s expected of you when you file your Answer with the court.

When to Hire a Lawyer

For complicated cases or if you simply want an expert to take over, hiring a lawyer is a solid choice. An experienced debt settlement attorney can manage all communication with Discover, analyze the strength of their case against you, and represent you in court. While this is the most expensive option, people with legal representation are often more likely to win their case or reach a favorable settlement. If cost is a major barrier, look into local legal aid societies that offer free or low-cost services to those who qualify.

Use a Document Preparation Service

A document preparation service offers a middle ground between going it alone and hiring a lawyer. This is a great fit if you want to represent yourself but need help ensuring your legal documents are prepared and filed correctly. When you get a summons from Discover, you typically have only 20 to 30 days to file an official Answer with the court. A service like LawLaw’s Debt Answer tool uses a guided questionnaire to help you create a professional response based on your specific situation. We then file the attorney-reviewed documents with the court for you, making the process simple, affordable, and fast.

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Frequently Asked Questions

What's the single most important thing I should do after getting sued by Discover? The most critical step is to file a formal Answer with the court before the deadline listed on your Summons. Ignoring the lawsuit is the worst possible move because it allows Discover to win an automatic default judgment against you. Responding, on the other hand, preserves all your rights, forces Discover to prove its case, and keeps your options open for negotiating a better outcome.

Do I have to hire an expensive lawyer to respond to the lawsuit? Not necessarily. While hiring an attorney is a good option for complex cases, it's not your only choice. You can also use a document preparation service to help you generate and file the correct legal forms yourself. This approach is a more affordable middle ground that ensures your paperwork is handled correctly without the high cost of legal representation.

What if I don't think I owe the amount Discover is claiming? If you believe the amount is wrong or the debt isn't yours, you must state that in your official Answer. This is your formal opportunity to challenge the lawsuit. You have the right to demand that Discover provide proof of the debt, a process known as debt validation. By raising this as a defense, you put the burden of proof back on them to show the court that their claim is accurate and legally valid.

Can Discover really take money from my paycheck or bank account? Yes, but only after they win a judgment against you in court. They can't simply seize your assets because they filed a lawsuit. However, if you ignore the lawsuit and they get a default judgment, they gain powerful legal tools like wage garnishment and bank levies. This is why responding to the lawsuit is so crucial—it's your primary defense against these aggressive collection actions.

Is it possible to settle with Discover even after they've sued me? Absolutely. Lawsuits are expensive for creditors, too, so they are often willing to negotiate a settlement rather than go through a full court battle. You can reach out to the law firm representing them to discuss settling for a lower lump-sum amount or arranging a manageable payment plan. Filing an Answer first often puts you in a stronger negotiating position.