Most people want to pay their bills on time and take pride in doing so. The thought of not paying can cause panic. But here’s the good news: Credit card companies are limited in what they can do if you default on your debt. They can’t take your house or car away. They can’t garnish your unemployment check (government income is exempt from liens). They can’t put a lien on your wages, because you don’t have any. That said, creditors aren’t toothless. They can, and often do, sue those who default. If you are sued for credit card debt, immediately review the filing to make sure it’s accurate. Often the plaintiff isn’t the credit card company but another a collection agency that bought your debt and will try various tactics, including a lawsuit to recoup at least part of what you owe. If you determine that the lawsuit is accurate, you need to defend yourself, which means you  likely will need a lawyer. If you get calls from your creditors, calmly explain that you’ve lost your job and you’ll catch up once you’re re-employed. Sometimes you can stall and reach a settlement agreement before a suit is filed.