How to Respond to a Credit Card Company Lawsuit

The company that filed a credit card company lawsuit against you has a job to do: they have to prove their case. They can’t just tell a judge you owe money; they have to provide concrete evidence that the debt is yours, the amount is accurate, and they have the legal right to collect it. This is called the "burden of proof," and it’s your most important advantage. Many collectors hope you won’t know this. They file lawsuits with incomplete paperwork, banking on an easy win. This article will show you how to challenge them and hold them to that legal standard.

Key Takeaways

• File Your Answer to Stay in Control: Ignoring a lawsuit results in an automatic loss. Your most critical move is to file a formal "Answer" with the court before the deadline. This single action forces the collector to prove their case and keeps you in control of the process.
• Make the Collector Prove Their Case: The company suing you has the burden of proof, not you. You have the right to challenge them on key points, like whether the debt is too old to collect (statute of limitations) or if they can even prove they legally own the debt.
• Negotiate a Settlement and Get It in Writing: A lawsuit often opens the door for negotiation, as creditors want to avoid court costs. You can frequently settle for less than you owe, but always get the final agreement in a signed document before you make any payment.

Why Credit Card Companies Sue

Getting a lawsuit notice can feel personal, but for a credit card company, it’s a business decision. They typically sue only after other attempts to collect the debt—like phone calls and letters—have failed. Lawsuits are their final step to recover money they're owed. Understanding this process can help you see the situation more clearly and figure out your own best course of action. It’s not a personal attack; it’s a standard procedure for accounts that have been unpaid for a long time.

What triggers a lawsuit?

A lawsuit is typically triggered when you default on your account. This is a formal way of saying you’ve broken the terms of your cardholder agreement. The most common reason is missing payments for several months, but other actions can also lead to default. These include consistently paying less than the minimum due or spending far beyond your credit limit. When the credit card company believes you are unable or unwilling to pay back what you owe, they may decide legal action is the only way to recover their funds.

A typical debt collection timeline

A credit card company won’t sue you after one missed payment. The journey to a lawsuit usually takes several months. For the first few months of non-payment, you’ll likely get letters and calls from the company’s internal collections department. If they can't reach you or arrange a payment, they might sell your debt to a collection agency, which will start its own efforts. If those attempts are also unsuccessful after about six months, the creditor or collector may decide to sue you for the debt as their next step.

The moment a company decides to sue

The decision to file a lawsuit comes after the creditor has exhausted its other options. Think of it as their last resort. They have likely sent you multiple notices and tried to call you to arrange a payment plan. When these methods don't work, the company weighs the cost of a lawsuit against the amount of your debt. If they believe they have a strong chance of winning in court and collecting the money—for example, through wage garnishment—they will move forward with legal action. This is when their strategy shifts from communication to litigation.

What to Expect from the Lawsuit Process

Getting sued is stressful, but the legal process follows predictable steps. Knowing what’s coming helps you stay in control. Here’s what happens after a creditor files a lawsuit, from the first documents you receive to the immediate actions you need to take.

Receiving the summons and complaint

The lawsuit begins when you receive a Summons and a Complaint. The Summons is the court’s official notice that you’re being sued; the Complaint outlines the creditor’s claims. These papers must be officially "served," meaning someone hands them to you or leaves them with an adult at your home or work. This process is designed to legally prove you received the notice and are aware of the case.

Key legal terms, explained simply

The company suing you is the "plaintiff," and you are the "defendant." The "Summons" is your notice to appear, and the "Complaint" is their side of the story. It’s important to know that responding to the lawsuit doesn’t mean you agree you owe the money. It simply means you are participating in the process to protect your rights. Think of it as saying, "I'm here, and you need to prove your case."

Know your response deadline

Once you receive the lawsuit, the clock starts ticking. The Summons will state exactly how long you have to file a formal response with the court. This deadline is critical. In many states, you have about 20 to 30 days, but you must check your documents for the exact date. Mark it on your calendar immediately. Missing this deadline can end your chance to defend yourself before the case even starts.

What you need to do right away

If you do only one thing, let it be this: always respond to the lawsuit. Ignoring the papers is the worst possible move. If you don't respond, the court will likely issue a "default judgment" against you, meaning the collector wins automatically. A default judgment gives them powerful tools to collect, like garnishing your wages. By responding, you force the collector to prove their case—a fundamental step in protecting yourself.

How to Respond to the Lawsuit

Seeing a lawsuit with your name on it is stressful, but how you react next is what truly matters. This isn't just about the debt; it's about protecting your rights and your financial future. Responding to the lawsuit is your first and most critical move. It signals to the court and the debt collector that you are present and prepared to defend yourself. Taking this step shifts the dynamic, placing the burden of proof squarely back on the company that sued you. They have to prove their case, and your response is what holds them to that standard. Let’s walk through exactly how to build a strong response.

File your official Answer

The single most important thing you can do is respond to the lawsuit. If you ignore the summons and complaint, the court will likely issue a “default judgment” against you. This means you automatically lose the case simply because you didn’t show up to defend yourself. Filing a formal response, known as an “Answer,” is how you officially tell the court you are participating in the lawsuit. This action forces the debt collector to prove you actually owe the debt. It’s your first opportunity to challenge their claims and present your side of the story. Don’t give up before the process even begins; make sure you file your Answer within your court’s deadline.

What to include in your response

Think of the complaint you received as a list of numbered statements from the debt collector. Your Answer is your chance to go through that list, one by one, and state whether you agree with it, disagree with it, or don't have enough information to say. You don’t need to write a long story. For each claim, you simply need to admit, deny, or state a lack of knowledge. Your Answer is also where you will list your defenses. These are the legal reasons why you believe the debt collector shouldn't win the case. For example, maybe the debt is too old to be collected, or you believe they have the wrong person. Clearly stating your responses and defenses is key to building a solid case.

Avoid these common mistakes

The biggest mistake you can make is failing to respond to the lawsuit. When you don't file an Answer, you give the debt collector an easy win. They get a default judgment without having to prove anything about the debt. By responding, you force them to produce evidence and justify their claim in front of a judge. Another common mistake is accidentally admitting to the debt in your written response when you have valid defenses. Be careful with your wording. Stick to admitting or denying the specific statements in the complaint. Avoid telling the whole story or making emotional statements. The goal of the Answer is to protect your legal rights, not to explain your financial history.

Gather the right documents

The company suing you has the burden of proof. This means they must provide documents to the court proving that you owe the debt and that they have the legal right to collect it. If they can’t produce the right paperwork, their case could be dismissed. They typically need to show the original credit agreement you signed, a complete history of payments and charges, and proof that they legally own the debt. Start gathering your own records, including any statements, letters from the collector, or proof of payments you’ve made. If you find discrepancies or if they fail to produce key documents, it can significantly strengthen your defense.

Use These Legal Defenses to Protect Yourself

When you're served with a lawsuit, it's easy to feel like you've already lost. But that's far from the truth. The company suing you has the "burden of proof," meaning they have to prove their case against you is legally sound. You have the right to challenge them, and there are several powerful legal defenses you can use. These aren't just excuses; they are valid legal arguments that question the lawsuit's legitimacy. If one of these defenses applies to your situation, it could lead to the case being dismissed entirely. Let's walk through some of the most common and effective ones.

The debt is too old (statute of limitations)

Every state has a law called the statute of limitations, which sets a firm time limit on how long a creditor or collector can sue you for a debt. This time frame varies depending on your state and the type of debt. If the company files a lawsuit after this period has expired, you can ask the court to dismiss the case. It's a powerful defense, but be careful. In many states, making even a small payment on an old debt can restart the clock on the statute of limitations, giving the collector a new window to sue you. Always check your state's specific laws before engaging with a collector about an old debt.

They can't prove they own the debt

Often, the company suing you isn't the one you originally owed money to. Original creditors frequently sell old debts to third-party debt buyers for pennies on the dollar. If a debt buyer is suing you, they must prove they have the legal right to collect, which is known as "standing." This requires a clear paper trail showing every time the debt was sold, from the original creditor all the way to them. If they can't produce this complete chain of ownership, they may not have the legal standing to sue you, and you can challenge the lawsuit on those grounds.

They don't have enough proof

Beyond proving they own the debt, the plaintiff must also prove that the debt is yours and the amount is accurate. This requires more than just their word for it. They should be able to produce key documents, like the original signed credit agreement and a complete history of account statements showing how they arrived at the total amount they claim you owe. If they lack this fundamental evidence, or if the documents they provide contain significant errors, their case is weak. You have the right to demand this proof and to point out any inconsistencies to the court.

It wasn't you (identity theft)

If you're being sued for a debt that resulted from fraud or identity theft, you are not legally responsible for paying it. This is a complete defense against the lawsuit, but you will need to provide evidence to support your claim. This proof can include police reports you filed about the incident, affidavits of fraud, or records of your communication with the original creditor when you first reported the fraudulent activity. The government provides resources to help you report and recover from identity theft, which can be crucial in building your case and protecting your finances from fraudulent claims.

They didn't follow the rules

Debt collectors must operate under a strict set of federal and state laws. The main federal law is the Fair Debt Collection Practices Act (FDCPA), which outlines what collectors can and cannot do. If the collector suing you violated these rules, it can be used as a defense. For example, if they failed to deliver the lawsuit papers correctly (a concept called "improper service"), filed the lawsuit in the wrong court, or harassed you, you can bring these violations to the court's attention. In some cases, these procedural mistakes are serious enough to get the entire lawsuit dismissed.

They failed to validate the debt

You have a legal right to ask a debt collector to verify that the debt is actually yours and the amount is correct. This is called asking for debt validation. Typically, you must send a written request within 30 days of first being contacted by the collector. Once you do, they must stop all collection efforts—including the lawsuit—until they provide you with proof. If they can't or won't provide proper validation, such as the name of the original creditor and the amount owed, they cannot legally continue to try and collect from you. This can be a very effective way to challenge a lawsuit early on.

What Happens If You Ignore a Lawsuit?

Receiving a lawsuit is stressful, and your first instinct might be to ignore it and hope it goes away. Let’s be clear: that is the worst thing you can do. Ignoring a lawsuit doesn't make it disappear; it just takes away your chance to defend yourself. When you don't respond, you give the credit card company an automatic win. The court assumes you agree with their claims because you didn't show up to argue otherwise.

This leads to a series of serious financial consequences that can be much harder to deal with than the original lawsuit. The debt collector gains powerful legal tools to collect the money from you, whether you can afford it or not. They won't need your permission to take money from your paycheck or your bank account. This isn't just about the debt anymore; it's about protecting your income, your property, and your financial future. Taking action is your only real option to maintain control over the situation.

Facing a default judgment

If you don't file a formal response with the court by the deadline, the company suing you can ask the court for a default judgment. This is an automatic ruling in their favor. The judge will likely grant it because you didn't present your side of the story. A default judgment is a legally binding court order that says you owe the debt. The amount will probably include the original debt plus interest, court costs, and the creditor’s attorney fees, making the total much higher than what you initially owed. This judgment is the key that unlocks the creditor's ability to take more aggressive collection actions.

Your wages could be garnished

Once a creditor has a default judgment, they can ask the court for a wage garnishment order. This order is sent directly to your employer, who is then legally required to withhold a certain amount of money from your paycheck and send it to the creditor. The amount they can take varies by state, but it can be a significant portion of your income. Imagine getting a smaller paycheck without any warning—that’s what happens with wage garnishment. It can make it incredibly difficult to pay your regular bills, like rent and utilities, and can continue until the entire judgment is paid off.

Your bank account could be frozen

A default judgment also allows a creditor to freeze your bank account, which is sometimes called a bank levy. They can get a court order that requires your bank to freeze your funds. When this happens, you won't be able to withdraw money, use your debit card, or pay bills from that account. The bank will hold the funds and may be required to turn them over to the creditor to satisfy the debt. Having your bank account frozen can be a huge shock and can disrupt your entire financial life, leaving you without access to the money you need for daily expenses.

A lien could be placed on your property

Another powerful tool a creditor has after a judgment is the ability to place a lien on your property. A property lien is a legal claim against an asset, like your house or car. While it doesn't mean they immediately take your property, it does mean you can't sell or refinance it without paying off the debt first. The lien acts as security for the debt, and it will stay on your property's public record until the judgment is satisfied. This can complicate future financial plans and effectively holds your most valuable assets hostage until you pay.

The long-term damage to your credit

A lawsuit and the resulting judgment can cause significant and lasting damage to your credit. The judgment can appear on your credit report for up to seven years, even if you eventually pay it off. This negative mark will lower your credit score, making it much harder to get approved for new credit cards, car loans, or a mortgage. Landlords and even some employers check credit reports, so a judgment could affect your ability to rent an apartment or get a job. Rebuilding your credit after a judgment is a long and difficult process.

How to Negotiate a Settlement

Even after a lawsuit is filed, the door to negotiation isn't closed. In fact, this is often when creditors are most willing to talk. Going to court is expensive and time-consuming for them, too, and there's no guarantee they'll win or be able to collect the full amount. This reality gives you leverage. By negotiating a settlement, you can often resolve the debt for less than the original amount and get the lawsuit dismissed. It’s a practical way to regain control of the situation and move forward without the stress and uncertainty of a court battle.

The key is to approach it strategically, starting with a clear understanding of your own financial picture and a plan for the conversation. This process puts you back in the driver's seat, allowing you to find a resolution that works for your life instead of having one dictated by a court. Many people successfully negotiate debt settlements on their own, saving money and avoiding a judgment on their record. The following steps will walk you through how to prepare for and handle these important conversations.

Figure out what you can afford

Before you pick up the phone, you need to know your numbers. Take a hard, honest look at your budget to determine what you can realistically pay to settle the debt. Can you manage a one-time lump sum payment? Or would a monthly payment plan be more feasible? A lump sum is often more attractive to creditors, and they might accept a lower overall amount for it. Knowing your absolute maximum offer before you start negotiating is your most powerful tool. This isn't about what they're demanding; it's about what your personal budget can handle without putting you in another financial bind.

Make a settlement offer

Once you know what you can afford, it’s time to reach out to the creditor’s attorney or the collection agency handling the lawsuit. You can start the conversation by making an offer. Many creditors will settle for a fraction of the total amount owed—sometimes between 30% and 60%—just to avoid the hassle of court. So, if you owe $3,000, you might start by offering to pay $1,500 to settle the debt completely. Be prepared for some back-and-forth. They might reject your first offer and counter with a different number. The goal is to find a middle ground that works for both of you and gets the lawsuit dropped.

Explore payment plan options

If a lump-sum payment is out of reach, a payment plan is a solid alternative to discuss. You can propose paying a set amount each month until the agreed-upon settlement total is paid off. However, be cautious here. In some states, making a payment can reset the statute of limitations on the debt, which is the time limit they have to sue you. Make sure any payment plan you agree to is part of a formal settlement that includes the dismissal of the lawsuit. Negotiate a monthly payment that you are absolutely certain you can make every time, because defaulting on the agreement could land you right back where you started.

Always get the agreement in writing

This is the golden rule of settling a debt: do not send a single dollar until you have a signed, written settlement agreement. A verbal promise over the phone is not legally binding and won't protect you. The written agreement should clearly state the settlement amount, the payment terms, and—most importantly—that the creditor will dismiss the lawsuit with prejudice (meaning they can't sue you again for the same debt). It should also specify that the payment will satisfy the debt in full. Review this document carefully before you sign it or make a payment. This piece of paper is your proof that the matter is officially closed.

When to get professional help

You can absolutely negotiate a settlement on your own, but you don't have to. If the process feels overwhelming or if you think you have a strong defense (like the debt is past the statute of limitations), bringing in a professional can be a game-changer. A consumer protection lawyer can handle the negotiations for you, review any settlement offers, and ensure your rights are protected every step of the way. They know exactly what to look for in an agreement and can often secure a better deal. You can find qualified attorneys through resources like the National Association of Consumer Advocates.

Know Your Rights as a Consumer

Facing a lawsuit can feel isolating, but it’s important to remember that you have rights. Federal and state laws exist specifically to protect you from unfair or deceptive practices by debt collectors. These laws aren't just suggestions; they are firm rules that collectors must follow throughout the entire process, including during a lawsuit. Understanding these protections is your first line of defense. It gives you the power to hold collectors accountable and ensures you are treated fairly. Think of these laws as your personal rulebook for dealing with debt collectors. Knowing what they can and cannot do will help you manage the situation with more confidence and control.

The Fair Debt Collection Practices Act (FDCPA)

The main law on your side is the federal Fair Debt Collection Practices Act (FDCPA). This act sets clear boundaries for what third-party debt collectors are allowed to do when trying to collect a consumer debt. For example, they cannot harass you with constant calls, use profane language, or threaten you with actions they can't legally take. The FDCPA also limits when they can contact you—generally not before 8 a.m. or after 9 p.m. You also have the right to tell them in writing to stop contacting you. Once they receive your letter, they can only contact you again to confirm they've stopped or to notify you of a specific action, like filing a lawsuit.

Protections specific to your state

While the FDCPA provides a strong foundation of protection, it’s not the only law that matters. Many states have their own debt collection laws that offer even more robust protections for consumers. For instance, some state laws apply to original creditors, not just third-party collection agencies, which is a gap in the federal FDCPA. It’s worth taking a few minutes to research your state’s specific regulations, as they might provide you with additional defenses in your case. You can usually find this information on your state attorney general’s website. Knowing these rules helps you understand your consumer rights on both a federal and local level, giving you a more complete picture of your legal standing.

What documents they must provide

When a debt collector first contacts you, they can't just demand money without providing details. The law requires them to send you a written "validation notice" within five days of their initial communication. This notice must clearly state the amount of the debt, the name of the creditor you owe, and a statement explaining your right to dispute the debt. If you send a written request to dispute the debt within 30 days, the collector must stop all collection efforts until they provide you with verification of the debt, like a copy of the original bill. The Consumer Financial Protection Bureau outlines exactly what laws limit what debt collectors can say or do, and this validation process is a key right you should use.

Other consumer protection laws

Your rights extend beyond just how collectors communicate with you. Other laws, like the Fair Credit Reporting Act (FCRA), govern how your financial information is reported and used. The FCRA ensures that the information on your credit report is accurate. If a debt collector reports the debt incorrectly to credit bureaus—for example, by stating the wrong amount or misrepresenting its status—you have the right to dispute that error. This is crucial because an inaccurate credit report can impact your ability to get loans, housing, or even a job. The Federal Trade Commission provides resources on how these different consumer protection laws work together to safeguard your financial life.

How to Prepare for Your Day in Court

Heading to court can feel intimidating, but preparation is your greatest strength. Many debt collectors count on people not showing up, so simply walking into the courtroom prepared puts you in a much stronger position. Taking the time to get organized and understand the process shows the judge you’re taking this seriously. Think of it as your opportunity to tell your side of the story and ensure the outcome is fair.

Organize your evidence

Your first step is to gather everything that supports your case. This isn’t just about finding old bills; it’s about building a complete picture of your history with the debt. Collect all correspondence you’ve had with the creditor or debt collector, including letters, emails, and notes from phone calls (with dates and times). If you’ve made payments, find the bank statements or receipts to prove it. This evidence is crucial for backing up any legal defenses you plan to use. Having your facts straight helps you defend your rights and challenge the collector’s claims effectively.

Get your documents in order

The company suing you has the “burden of proof,” which means they have to legally prove you owe the debt and that they have the right to collect it. They need key documents, like the original credit agreement you signed and a full history of the account statements. Go through every document they provide for mistakes—incorrect balances, names, or dates can weaken their case. At the same time, pull together your own records. Having your documents organized in a folder or binder will help you stay calm and find what you need quickly when you’re in front of the judge.

Understand court procedures

You don’t need to be a legal expert, but knowing basic courtroom etiquette will make a big difference. Learn how to address the judge (“Your Honor”) and where you’re expected to stand or sit. Many local court websites have guides for people representing themselves. The most important rule is simple: you must show up. If you don’t appear for your court date, the court will almost certainly issue a “default judgment” against you, meaning you automatically lose the case. Your presence is your power, so make sure you’re there.

Consider mediation

Before your trial date, the court may offer mediation. This is a meeting with the debt collector and a neutral third party (a mediator) to try and reach an agreement without going before a judge. Mediation is less formal than a trial and can be a great way to work out a settlement that you can afford. It gives you more control over the outcome and can save you the stress and uncertainty of a trial. If you can agree on a reduced lump-sum payment or a manageable payment plan, it could be a win-win.

What to expect when you arrive

On your court day, plan to arrive at least 30 minutes early. This gives you time to get through security, find the right courtroom, and settle your nerves. Check the court docket (a list of cases for the day) posted outside the courtroom to confirm your case is listed. Once inside, you’ll wait for your case to be called. When it’s your turn, you’ll present your case to the judge. Be prepared for any outcome. If the judge rules against you, the judgment could lead to wage garnishment or a bank levy, which is why your preparation is so critical.

Other Paths to Debt Resolution

Even when you’re facing a lawsuit, it’s helpful to look at the bigger picture of your financial health. A lawsuit is a symptom of an underlying debt issue, and there are several structured ways to address it. Exploring these options can help you find a sustainable path forward, whether you end up settling the lawsuit or need a more comprehensive plan to get back on your feet.

Debt management plans

If you're juggling multiple debts, a Debt Management Plan (DMP) could be a great option. Offered by nonprofit credit counseling agencies, a Debt Management Plan consolidates your unsecured debts—like credit cards—into a single, more manageable monthly payment. Your credit counselor works with your creditors to potentially lower your interest rates and waive fees. You then make one payment to the agency, and they distribute the funds to your creditors. It’s a structured approach that can help you pay off your debt in three to five years without taking on a new loan.

Is bankruptcy an option?

Bankruptcy is a serious legal process that can offer a fresh start when your debt feels completely overwhelming. It can stop collection actions, including lawsuits, and discharge many types of unsecured debt. However, it’s not a decision to take lightly. Bankruptcy has significant, long-term consequences for your credit, staying on your report for up to ten years and making it difficult to get new loans or credit cards. It’s a powerful tool for some situations, but it’s crucial to weigh the pros and cons carefully to decide if it’s the right path for you.

How credit counseling can help

You don’t have to figure this all out on your own. Professional help is available, and it’s often the best first step. Reputable credit counseling services can provide a full review of your financial situation, help you create a realistic budget, and explain your options clearly. A certified counselor can assess whether a DMP is a good fit or guide you toward other solutions. Getting expert advice gives you a clear, personalized roadmap for taking back control of your finances and dealing with your debt effectively.

Steps to rebuild after resolving debt

Once you’ve resolved your debt, your next focus is rebuilding your financial health. The first step is creating a solid budget to keep your spending in check and start building savings. To improve your credit score, consider getting a secured credit card. Since it’s backed by a cash deposit, it’s easier to get approved for, and making small purchases that you pay off in full each month shows lenders you’re a responsible borrower. Finally, make a habit of checking your credit report regularly to track your progress and dispute any errors you find. These small, consistent actions will help you rebuild your credit over time.

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Frequently Asked Questions

What if I know I owe the money? Should I still respond to the lawsuit? Yes, you absolutely should. Responding to a lawsuit is about protecting your legal rights, not just admitting or denying the debt. When you file an Answer, you require the company suing you to legally prove their case. They must show evidence that they own the debt, that the amount is accurate, and that they are suing you within the legal time limit. Failing to respond results in an automatic loss, giving them the power to garnish your wages or freeze your bank account without any further argument from you.

Can I really negotiate a settlement myself, or do I need a lawyer? You can definitely handle negotiations on your own, and many people do it successfully. The key is to be prepared by knowing exactly what you can afford and getting any final agreement in writing before you pay. However, you might consider getting professional help if the debt is very large, you believe you have a strong legal defense, or the process simply feels too overwhelming. A lawyer can often negotiate a better deal and will ensure all the legal paperwork is handled correctly to protect you.

How will settling the debt affect my credit score? A settled debt is much better for your credit than a court judgment. While the history of missed payments will still be on your report, resolving the account is a positive step. The account will be updated to show a zero balance, often with a note like "settled for less than the full amount." A judgment, on the other hand, is a separate and very damaging public record that stays on your credit report for up to seven years, making it much harder to get approved for future credit.

What's the difference between the original credit card company and a debt collector suing me? This is an important distinction. The original credit card company is the one you first opened the account with. Often, these companies sell old, unpaid debts to third-party debt collection agencies. If a debt collector is suing you, they now claim to own the debt. This means they have the burden of proving it. They must provide a complete paper trail showing they legally bought your specific account, and sometimes they don't have this proof, which can be a strong defense for you.

I received the lawsuit papers, but I can't afford to pay anything right now. What should I do? Even if you have no money to offer, your first and most critical step is to file a formal Answer to the lawsuit before the deadline. This action protects you from an automatic loss and buys you valuable time. By responding, you force the collector to go through the entire legal process, which can take months. During that period, your financial situation might change, or you might discover errors in their case that could lead to a dismissal. Ignoring the lawsuit because you can't pay is the one move that guarantees a worse outcome.