Have you just been served with a Denali Capital, LLC lawsuit for debt collection? If so, you may feel confused and overwhelmed. What is Denali Capital, LLC? Is it legitimate, and why is it suing you? Can you do anything to protect yourself? Fortunately, you have legal rights and options to resolve the lawsuit. In the article below, our Texas debt collection defense attorneys explain what to know about Denali Capital, LLC and facing a debt collection lawsuit in Texas.
What Is Denali Capital, LLC?
Denali Capital, LLC is a Birmingham, Alabama-based debt buyer that purchases portfolios of “charged off or underperforming” assets from original creditors. According to its website, examples of the types of debt accounts that it purchases include:
- Auto loans
- Consumer finance
- Consumer loans
- Fintech loans
- Utility and services
Is Denali Capital, LLC Legitimate?
Denali Capital, LLC is a legitimate company. It is an RMAI-certified receivables company. However, business legitimacy does not mean you owe Denali Capital, LLC the money it claims. Generally, Denali Capital, LLC must prove its case. It must be able to prove the following:
- It owns the debt
- It has the legal right to collect the debt
- You owe the debt
- The debt amount is accurate
We recommend contacting an experienced Texas debt collection defense lawyer from our firm about your situation. Our team provides a free, no-obligation consultation to review the claims against you. We can help you understand your situation, identify any glaring weaknesses in the case against you, and discuss steps to protect your legal rights and resolve the lawsuit.
What Does Denali Capital, LLC Do?
Denali Capital, LLC is a debt buyer. It is not an original creditor. Its business model consists of buying thousands of charged-off accounts from banks, credit card companies, and other lenders for pennies on the dollar.
Once Denali Capital, LLC purchases an account at a steep discount, it tries to collect the total amount of debt from the consumer. It may attempt phone calls, emails, or letters before resorting to litigation.
If Denali Capital, LLC decides to file lawsuits against consumers to obtain the debt, it hires debt collection law firms to handle the litigation. In Texas, it often uses the law firm Johnson Mark, LLC.
Why Is Denali Capital, LLC Suing Me?
Are you facing a Denali Capital, LLC lawsuit? If so, it may be because Denali Capital, LLC purchased a charged-off account from an original creditor, and it claims that you owe the money. If the company’s other collection efforts, like phone calls or letters, fail, then it may resort to filing a lawsuit against you.
Unfortunately, many consumers ignore debt collection lawsuits, which is Denali Capital, LLC’s goal. It wants to obtain a default judgment against you because a default judgment is a debt buyer’s quickest and cheapest path to getting paid. A default judgment means Denali Capital, LLC automatically wins the case because you did not file a formal response to the lawsuit with the court or appear in court.
Beyond the alleged debt, Denali Capital, LLC can pursue accrued interest, late fees, court costs, and attorney’s fees. Once it gets a default judgment against you, it can take further legal action to obtain this money. It may seek bank garnishment, which means freezing and seizing funds from your bank accounts, place liens on your property, or seize nonexempt property to pay the debt.
How Our Texas Debt Collection Defense Lawyers Can Help
At Warren & Migliaccio, our Texas debt collection defense lawyers have extensive experience and success in defending individuals against lawsuits brought by creditors, debt collectors, and debt buyers. When you choose us to represent and defend you, you can expect us to handle the legal process on your behalf. For example, we will:
Draft and File an Answer to the Lawsuit
We will draft and file a response to the lawsuit, called an Answer, with the court. In your Answer, we will deny Denali Capital, LLC’s allegations against you, demanding that it prove its case. Additionally, we will assert any debt collection defenses, such as mistaken identity, expired statute of limitations, or lack of assignment.
By filing an Answer, Denali Capital, LLC does not get a default judgment or automatically win the case. You place the burden of proof on Denali Capital, LLC to prove its case, which it may not be able to do. In many cases, the debt buyer may drop the case or be open to a favorable settlement.
Demand Debt Validation
Debt buyers often sue without the documentation needed to secure a judgment. Because the account has been sold, sometimes multiple times, critical documents may be missing. To obtain a judgment, Denali must prove the following:
- It owns the debt
- It has the legal right to collect the debt
- You owe the debt
- The debt amount is accurate
We will demand debt validation from Denali Capital, LLC, including a copy of the original credit agreement, an itemization of the debt, and the chain of title for your alleged account. We will investigate the paperwork to identify weaknesses that could lead to case dismissal or a strong settlement position.
Execute the Best Course of Action for Your Case
After investigating the claims against you and discussing your unique financial situation, we will help you understand your best legal options for resolving the lawsuit. This way, you can make an informed decision about how to move forward.
We will always work for a case dismissal first. However, if case dismissal is not possible, we will work toward the next best solution. Depending on your unique situation, that may be negotiating a settlement, fighting the case in court, or seeking bankruptcy.
Negotiating a settlement may be in your best interest if you recognize the debt, want to avoid court, and Denali Capital, LLC has a strong case against you. In many cases, Denali Capital, LLC will be open to settling to avoid the costs, time, and risk of going to court. Generally, you can negotiate a lower lump-sum payment or a payment plan that works for you.
In some cases, fighting the case in court may be in your best interest. While you can expect the case to take longer to resolve, you may have strong defenses to win in court. Depending on the case, you may also have a viable countersuit if Denali Capital, LLC violated the Fair Debt Collection Practices Act (FDCPA).
If your financial situation is dire, and your debt feels impossible to manage, seeking bankruptcy may be a viable option for you to gain a fresh start. When you file, an automatic stay stops all collection efforts, including the Denali Capital, LLC lawsuit.
Chapter 7 bankruptcy discharges unsecured debts, like credit cards and most personal loans. In contrast, Chapter 13 restructures your debt into a manageable payment plan over three to five years.
FAQs Regarding: Responding to a Denali Capital Lawsuit
How Long Do I Have to Respond to a Denali Capital, LLC Lawsuit in Texas?
In most Texas counties, you have until the Monday following 20 days from the date you were served to file a formal written Answer with the court. Missing this deadline can result in a default judgment, where Denali Capital, LLC automatically wins.
Always check your court documents or consult an attorney to confirm the exact response deadline in your county.
What Happens If I Ignore a Denali Capital, LLC Lawsuit?
Ignoring the lawsuit almost always leads to a default judgment, meaning Denali Capital, LLC wins automatically. With a default judgment, they can:
1. Add court costs, interest, and fees to your balance
2. Potentially freeze bank accounts or place property liens
3. Damage your credit score for years
Responding promptly preserves your right to defend yourself and potentially avoid these consequences.
What Is a Default Judgment, and How Can Denali Capital, LLC Use It?
A default judgment occurs when you fail to respond or appear in the lawsuit, allowing Denali Capital, LLC to automatically win. Once granted:
1. They can collect the full claimed amount, plus fees and interest
2. They may attempt to freeze bank accounts or put liens on property
3. The judgment will appear on your credit report, negatively affecting your score
4. Filing an official Answer on time is the only way to avoid a default judgment.
FAQs Regarding: Validating & Defending Against the Debt
How Do I Verify or Dispute a Debt Claimed by Denali Capital, LLC?
You have the right to request debt validation by sending a written letter (preferably certified mail) asking Denali Capital, LLC to prove:
1. They own the debt (chain of title)
2. The original contract or agreement
3. The accurate amount owed
If they cannot provide proper documentation, you may have grounds to dispute the debt or seek dismissal of the lawsuit.
Does the Statute of Limitations Protect Me from Old Debt in Texas?
Yes. In Texas, most consumer debts have a four-year statute of limitations from the date of your last payment or default. If Denali Capital, LLC sues after that period expires, you can raise the statute of limitations as a defense.
However, you must assert this defense in your formal Answer; the court won’t automatically dismiss the case on those grounds.
What Legal Defenses Can I Raise Against Denali Capital, LLC?
Common defenses in a Texas debt lawsuit include:
1. Statute of Limitations (often four years for consumer debt)
2. Lack of Standing (they can’t prove they own your account)
3. Mistaken Identity or identity theft
4. Insufficient Documentation (missing original agreement, payment history)
5. Improper Service of the lawsuit
Consult an attorney to see which defenses best fit your situation.
FAQs Regarding: Settling or Paying the Debt
How Do I Negotiate a Settlement with Denali Capital, LLC?
To settle, you (or your attorney) can contact Denali Capital, LLC or their lawyer and propose:
1. A lump-sum payment for less than the total owed.
2. A payment plan if a lump sum is not feasible.
Always get the settlement terms in writing, ensuring it states the debt is “paid in full” and that the lawsuit will be dismissed (or released) once you comply with the agreement.
What If I Can’t Afford to Pay Denali Capital, LLC?
If you cannot pay the alleged debt, possible options include:
1. Settlement for a lower amount or a manageable payment plan
2. Bankruptcy, which can discharge or reorganize debts and trigger an “automatic stay” to halt collection efforts
3. Fighting the lawsuit in court, if you have strong defenses
4. Speak with an experienced debt collection defense attorney to determine your best path.
FAQs Regarding: Post-Judgment Actions
Can Denali Capital, LLC Garnish My Wages in Texas?
In most situations, Texas law does not permit wage garnishment for consumer debts like credit cards or personal loans. However, after obtaining a judgment, Denali Capital, LLC can pursue other remedies—such as freezing and seizing funds in your bank account or placing liens on non-exempt property.
Texas does allow wage garnishment for certain debts (child support, student loans, and taxes), but standard consumer debt is generally exempt.
Contact Our Texas Debt Defense Lawyers for a Free Consultation
Are you being sued by Denali Capital, LLC for debt collection in Texas? If so, do not hesitate to schedule a free, no-obligation consultation with our law firm. We are happy to review the claims against you and discuss your legal options for resolving the lawsuit.
At Warren & Migliaccio, our debt lawsuit defense lawyers have extensive experience and success defending individuals and their families from debt collection lawsuits. We will always strive for case dismissal first. However, if dismissal is not possible, we will work toward the best possible outcome for your unique situation. Call us at (888) 584-9614 or contact us online, and we will reach out to you soon to schedule your free consultation.
