During the lawsuit, the court could not care less whether you can pay a debt. All the trier of fact cares about is whether you owe the money and whether the plaintiff is entitled to a judgment against you. When the plaintiff attempts to collect the debt, you can then plead hardship to the court if it is garnishing wages or levying your bank account.

You might consider other options, including bankruptcy, if you have more debts that you cannot pay. Bankruptcy might discharge all of those unsecured debts.

The judge decides whether or not you owe the money and how much and not whether you can afford to pay it. Poverty is not a defense to a lawsuit. Sounds like you are judgment proof which means the creditor cannot get anything from you. However, bankruptcy will probably give you the peace that you might want and may be a much better investment for the $2,000 you were offering the creditor (although your bankruptcy case should cost less than $2,000). You should have a consultstion with a bankruptcy attorney to explore that option.

The judge only focuses on whether you owe the alleged debt. You should contact a bankruptcy attorney and also get some representation in the collection lawsuit. Please call me at 415-441-1052. My law partner primarily focuses on bankruptcy cases and I have quite a bit of experience representing creditors and debtors.

The previous answers are correct, but to answer your exact question more directly, the court decides if you have to pay and how much based on how much charges and interest you ran up on the card and did not pay. That is all there is to it. If you didn't pay everything you owe, the court will decide you have to pay. How much you have to pay is based on what you charged and didn't pay, plus interest and fees.