Imagine paying off an old credit card balance, then getting sued again by a new debt collector. I’ve seen this happen many times in Texas.
Errors in the debt collection process, like lost paperwork or database mistakes, can cause multiple lawsuits for the same debt.
Texas has borrower-friendly statutes of limitations. But some aggressive collection agencies and debt buyers still file these “second lawsuits.”
As an attorney defending Texans against unfair debt collection, I have ways to fight back.
What you’ll get from this article
- How to tell if a second lawsuit is illegal Spot the red flags that show a collector is breaking the rules.
- Res judicata made simple Learn how this legal principle can shut down repeat lawsuits.
- Quick steps to guard your money and credit score Practical actions you can take right away.
- Key Texas and federal laws to know Understand the rules that protect you at both levels.
Understanding Texas Debt Collection
Before looking at multiple lawsuits, it’s important to understand how debt collection works in Texas.
Key Players: Creditor vs. Debt Collector vs. Collection Agency
In the debt collection world, you’ll deal with different entities trying to collect your debt:
- Original creditor: The company that first gave you credit (like your bank or credit card company)
- Debt-buyer: Companies that buy old debt from original creditors for very little
- Attorney-run collection agency: Law firms that focus on debt collection
Having the original contract available as proof in court is crucial, as it can significantly impact the outcome of a debt collection lawsuit.
I once represented a client against a major debt buyer who bought her account from a national bank. They had no original paperwork but still sued. We showed they couldn’t prove they owned the debt, so the lawsuit was dismissed.
Debts often move from one entity to another through:
- Assignment: The original creditor transfers the right to collect.
- Purchase agreement: A debt buyer pays the original creditor a small portion of the total owed to take over the debt.
Texas Statute of Limitations & “Time-Barred Debt”
| Debt Type | Limitations Period | Can It Restart? | Can You Be Sued Twice? | Key Notes |
|---|---|---|---|---|
| Credit Card | 4 years (Tex. Civ. Prac. & Rem. Code §16.004) | No (after Sept 1 2019) | No, unless first case was without prejudice | Most common duplicate-suit category. |
| Medical | 4 years | No | No | Hospitals often sell to multiple collectors. |
| Written Contract (Loans, Installment) | 4 years | No | No | Res judicata bars refiling after final judgment. |
| Private Student Loan | 4 years | No | No | Same restart rule as credit-card debt. |
| Federal Student Loan | No statute of limitations | N/A | Yes (government can pursue indefinitely) | Garnishment allowed outside Texas courts. |
Texas state law sets clear time limits for debt collection lawsuits:
- The standard limitations period is four years from the date of default (Tex. Civ. Prac. & Rem. Code §16.004).
- This clock usually starts with your last payment or the first missed payment. If you pay or confirm you owe the debt in writing, the statute of limitations restarts.
Different types of debt can have different timelines:
- Credit card debt: 4 years
- Medical debt: 4 years
- Written contracts: 4 years
- Student loans (private): 4 years
- Student loans (federal): No statute of limitations
Relevant Federal Laws
Two main federal protections also apply in Texas:
- Fair Debt Collection Practices Act (FDCPA): Bans abusive, deceptive, and unfair debt collection methods.
- Consumer Financial Protection Bureau (CFPB): Oversees and enforces consumer protection laws.
We’ve used these federal laws to stop harassing collectors and improper lawsuits against our clients.
The Data Behind Debt Collection Disputes
If you’re facing debt collection, you’re not alone. Here are some key facts:
- In 2023, the Consumer Financial Protection Bureau (CFPB) received roughly 767,500 complaints about credit or consumer reporting.
- The top complaint was “debt not owed,” making up 48% of those complaints.
- Debt collection also tied to 74,278 fraud reports to the Federal Trade Commission in 2023.
These statistics show frequent errors and abuses by debt collectors. Knowing your rights is essential.
Can a Debt Collector Sue You Twice? Legal Framework
Now to our main question: Can a debt collector sue you twice for the same debt in Texas? Under city, state, and federal rules, filing a second lawsuit on the exact same debt is typically unlawful.
Res Judicata & Claim Preclusion
Res judicata (Latin for “a matter judged”) is the principle stopping duplicate lawsuits. Texas law recognizes it, so a new case can’t be brought if:
- There was a previous final judgment on the merits.
- The same parties (or those legally connected to them) are involved.
- The second case involves claims that were or could have been raised in the first case.
Previous court judgments related to debts can influence current legal actions by providing documentation that can be used to defend against redundant lawsuits or to file motions such as motions to dismiss based on prior judgments.
Dismissals matter here:
- Dismissal with prejudice: The lawsuit cannot be brought back.
- Dismissal without prejudice: The lawsuit can potentially be filed again.
Case Study: The Impact of Prior Dismissals – Trahan v. PHO, Inc.
In Trahan v. PHO, Inc., No. 09-14-00119-CV (Tex. App.—Beaumont Mar. 5, 2015, no pet.) (mem. op.), a debt buyer sued Mr. Trahan over a credit card debt. Trahan used res judicata as a defense, saying there had already been a lawsuit about the same debt that got dismissed.
The earlier lawsuit might have involved the original creditor or someone tied to PHO. The Texas Court of Appeals revisited the case and reversed a ruling in favor of the debt buyer. The court saw a real question about whether the earlier lawsuit was dismissed “with prejudice.” If it was, it would prevent a second lawsuit on the same claim.
This case shows that if a past debt collection lawsuit was dismissed “with prejudice,” that can be a powerful defense against a second lawsuit by any future owner of the same debt.
When a Second Lawsuit Is Allowed
Sometimes, a second lawsuit can be filed legally:
- The first lawsuit was dropped without prejudice.
- The second lawsuit uses different legal theories (e.g., first for breach of contract, later for “account stated”).
- A new owner of the debt is suing, and they weren’t involved in the original lawsuit.
It is crucial to understand your rights when facing legal action for the same debt. Consulting an attorney or filing motions to dismiss redundant lawsuits can be essential steps in protecting yourself.
In our practice, we’ve seen debt buyers try to work around these rules with complicated chains of ownership to hide the debt’s history.
Red Flags of an Improper Second Lawsuit
Watch out for these hints that a second lawsuit might be improper:
- Exact same cause of action, parties, and repeated court case details.
- A push to “restart” an expired limitations period by making you pay a small amount.
- Matching account numbers and default dates from an older lawsuit.
Errors in the collection process, such as lost paperwork or miscommunication between law firms, can lead to a debtor facing two lawsuits for the same account.
From My Desk: When Old Lawsuits Reappear
I recall someone who came to me after they got a lawsuit notice for an old credit card debt they thought was long settled. As we looked over the documents, we spotted the same account number and default date from an earlier lawsuit that was dismissed with prejudice. We used res judicata to argue the case was already decided and couldn’t be reopened. The judge agreed and threw out the second lawsuit. Debt buyers often reuse details from older cases, so finding those repeat facts is key to protecting Texans from being sued again for the same debt.
What Happens After a Duplicate Suit Is Filed
If you get a notice of a second lawsuit on a debt you’ve already faced, time is critical.
Court Procedure & Default Judgment Risks
The usual court process looks like this:
- You’re served with a citation and a petition.
- You must file an answer by a specific deadline (often 14–20 days).
- If you don’t respond, the collector can get a default judgment.
Errors in the collection process or miscommunication can sometimes lead to a creditor unintentionally obtaining two default judgments against the same debtor for the same obligation.
Ignoring a suit can lead to:
- An automatic default judgment.
- Possible bank account freezes.
- Property liens.
- Damage to your credit for up to 10 years.
How to Respond—Step-by-Step
If you’re served with a duplicate lawsuit, here’s what you should do:
- Check that the service of the lawsuit was done correctly.
- Ask for debt verification by sending a letter via certified mail.
- File an answer with the court that includes:
- General denial
- Res judicata defense
- Statute of limitations defense
- Request proof of the debt and copies of all assignment documents.
To effectively resolve issues related to duplicate lawsuits, it is crucial to take prompt legal action and address any mistakes made by creditors in the collection process.
I helped a Dallas client who got sued twice for the same store-brand credit card debt. By filing an answer that cited res judicata and demanding proof of the debt’s transfers, we made the collector drop the case.
Motions to Dismiss or Motion for Summary Judgment
Besides filing your answer, you might want to:
- File a motion to dismiss: Ask the court to end the case right away.
- File a motion for summary judgment: Ask the court to rule in your favor without a trial.
Common defenses include:
- “We’ve already gone to court over this.”
- “The limitations period has run out.”
- “This debt was paid or settled before.”
Impact on Your Credit Report & Credit Score
Even if you win in court, repeated debt collection attempts can still hurt your credit score.
Duplicate Tradelines & How to Dispute
Sometimes both the original creditor and a debt buyer report the same debt on your credit report. For example, a creditor might mistakenly forward the same account to different law firms for collection, leading to potential duplicate judgments against the debtor. You can fix this by:
- Getting your free annual credit reports from Experian, Equifax, and TransUnion.
- Spotting duplicate listings.
- Submitting disputes to each credit bureau.
- Including court records showing the debt was already settled or resolved.
We often tell clients to dispute in writing so they can attach proof, rather than just using the online dispute forms.
Effect of Judgments on Credit Score
Judgments can lower your credit score by 100 points or more:
- They appear as public records on your credit report.
- They can remain for 7 years (or longer if renewed).
- Debts generally stay on your credit for seven years, even if they’re time-barred debt.
If you win or pay off a judgment, be sure to:
- File a satisfaction of judgment with the court.
- Send proof to the credit bureaus so they can update or remove it.
Garnishment, Bank Accounts & Wage Protection
Many Texans worry about losing paychecks to garnishment. Luckily, Texas offers strong safeguards.
When Can a Texas Court Order Wage Garnishment?
In Texas, wage garnishment for consumer debts isn’t allowed except for:
- Child support
- Federal student loans
- Certain tax debts
However, wage garnishment in Texas is allowed for certain obligations like delinquent taxes. This is much better than other states, where collectors can take up to 25% of your pay.
Bank Account Freezes & Property Liens
Though your wages are mostly protected, collectors can:
- Freeze bank accounts (even if direct deposits were just made).
- Place liens on property that isn’t exempt.
- Use post-judgment discovery to learn about your assets (Tex. Civ. Prac. & Rem. Code §31.002).
Social security benefits are generally protected from garnishment, which is crucial for individuals dealing with debt and creditor actions.
To protect exempt funds like social security:
- Keep them in a separate account.
- File a claim of exemption quickly if your account is frozen.
- Provide documents that show the source of the money.
Working With Debt Collectors & Collection Agencies
Sometimes you can handle the situation by communicating carefully with collectors.
Your FDCPA & Texas Debt Collection Act Rights
You have strong legal rights, including:
- The right to demand collectors stop contacting you (by sending a cease-and-desist letter).
- No phone calls before 8 a.m. or after 9 p.m.
- Freedom from threats or verbal abuse.
We’ve filed suits against debt collectors who broke these rules, and we’ve won damages for our clients.
Negotiation vs. Litigation
Before going to court, think about these choices:
- Lump-sum settlements: Often 30–50% of the total amount claimed.
- “Pay-for-delete” deals: You pay, and they remove the negative entry from your credit report.
- Payment plans: Let you pay in smaller amounts.
It’s crucial to contact your creditors to negotiate terms or settlements to avoid legal repercussions.
No matter which route you take, keep good records:
- Write down call reference numbers.
- Follow up phone chats with a letter or email.
- Save all letters and notices.
When to Seek Professional Legal Advice
While many people can handle a simple debt dispute on their own, duplicate lawsuits often call for professional help.
Finding a Consumer-Rights Law Firm
Ask any potential lawyer:
- How many debt collection defense cases have you handled?
- What portion of your practice focuses on consumer rights?
- Do you charge a flat fee or work on contingency?
The attorney-client relationship is key for building a defense that fits your exact circumstances.
Free & Low-Cost Resources
If you can’t hire a lawyer, look into:
- Texas RioGrande Legal Aid (if you meet low-income rules).
- Legal Aid of NorthWest Texas.
- CFPB complaint portal (for reporting illegal collection practices).
- Your county’s self-help law library.
FAQs Regarding: Duplicate Lawsuits
Can a creditor sue me twice for the same debt in Texas?
Usually, no. Res judicata stops a creditor from suing you a second time for the same debt if the first case ended in a final judgment. But if the first lawsuit was dismissed “without prejudice” or involved different parties, a second lawsuit might be allowed.
What should I do if I’m sued twice for the same debt in Texas?
If you’re served a second time for the same debt:
1. Don’t ignore it – failing to respond can lead to a default judgment.
2. File a written answer before the deadline (often 14 days in Texas justice courts).
3. Use res judicata if the first case ended in a final judgment or was dismissed with prejudice.
4. Gather all paperwork from the first lawsuit, like court orders, dismissals, or settlements.
5. Ask the collector to prove the debt’s ownership.
6. Think about filing a motion to dismiss if the issue was already handled.
Can a debt collection agency reopen a case that was dismissed?
It depends on how it was dismissed. If it was “with prejudice,” the case cannot be filed again. If it was “without prejudice,” they can refile as long as the statute of limitations hasn’t run out. Always check your court documents to see how your case was dismissed.
What evidence proves a debt collector is suing for the same debt twice?
Look for:
1. Firstly, identical account numbers in both lawsuits.
2. Secondly, the same original creditor or lender.
3. Thirdly, matching dates of default and the same principal amount.
4. Fourthly, similar parties (even if the collector’s name has changed).
FAQs Regarding: Texas Statute of Limitations, Time-Barred Debt & Zombie Debt
What is the statute of limitations for debt collection in Texas, and can making a payment restart it?
In Texas, the statute of limitations for most consumer debts is four years after your last payment or missed payment. Once that four-year window is up, the debt becomes time-barred, and creditors lose their right to sue you. Learn more about when does statute of limitations start for debt.
The statute of limitations varies by state, so it’s important to understand your state’s statute regarding old debts. The time period for debt collection starts when a payment is missed and can be reset under certain conditions.
Before 2019, making even a small payment could restart this four-year clock. But under Section 392.207 of the Texas Finance Code, payments and written acknowledgments no longer reset the clock. This change protects consumers from zombie debt revival tactics.
What is zombie debt and how does it affect Texans?
Zombie debt is old, time-barred debt that collectors try to revive through various tricks. These debts are past the four-year limit but still cause problems through renewed collection attempts.
Texas now guards against zombie debt by:
1. Firstly, preventing the statute of limitations from restarting if a payment is made (per Section 392.207 of the Texas Finance Code).
2. Secondly, requiring debt buyers to tell you if a debt is beyond the time limit.
3. Thirdly, making collectors say when a debt is too old to sue over.
You may still owe a time-barred debt, but creditors usually can’t win a lawsuit once the debt is outside the limitations period.
FAQs Regarding: Res Judicata & Legal Dismissals
What does “res judicata” mean in Texas debt collection cases?
Res judicata blocks a debt collection lawsuit from being filed again between the same people when there’s already been a final judgment. To use res judicata:
1. There must be a final judgment on the merits.
2. The parties or those in privity (legally tied, such as a later debt buyer) are the same.
3. The second suit is based on the same claims raised or that could have been raised in the first action.
What’s the difference between dismissal “with prejudice” versus “without prejudice” in debt lawsuits?
1. With prejudice: The case is finished forever. The collection company can’t refile that exact claim. It often works the same as a final judgment for res judicata.
2. Without prejudice: The case is over for now, but the creditor can file again later if the limitations period hasn’t expired. Make sure you know which type of dismissal you got.
FAQs Regarding: Default Judgments & Garnishments
How do I stop wage garnishment on a duplicate judgment?
Texas does not allow wage garnishment for most consumer debts. If you do face garnishment from a duplicate judgment, file a motion to overturn the judgment, arguing res judicata. If the garnishment is for child support, federal student loans, or taxes, talk to an attorney about your options.
Errors in the collection process can sometimes lead to a creditor obtaining two judgments against a debtor for the same debt, potentially resulting in default judgments if the debtor does not respond appropriately.
What happens if I ignore a second debt-collection lawsuit?
Ignoring any lawsuit can lead to a default judgment. That means the collector wins automatically, and they can try to freeze your bank account or put liens on your property. Always respond, even if you think the lawsuit is invalid.
How does a default judgment affect me in a debt collection case?
A default judgment happens if you don’t answer a lawsuit. It can have serious effects:
1. Firstly, the collector can seek your assets.
2. Secondly, your bank accounts can be frozen.
3. Thirdly, on-exempt property might have liens placed on it.
4. Fourthly, the judgment may appear on your credit report for up to 10 years.
5. Fifthly, interest can grow under Texas law.
Since default judgments are hard to reverse, it’s crucial to file an answer to any lawsuit.
FAQs Regarding: Credit Reporting & Payment
Why is the same debt showing up twice on my credit report?
This may occur if both the original creditor and a debt buyer report the same debt. This can break the Fair Credit Reporting Act. File disputes with all three credit bureaus, showing proof they are duplicates.
When facing lawsuits, it is crucial to compile documents related to the original debt. This helps in understanding your legal standing and can affect judgments.
Is paying an old debt the best way to improve my credit score?
Not always. Paying an old debt can, in some cases, affect the limitations period (although Texas changed its rules in 2019). It’s smart to check with a consumer rights attorney before paying an old debt, to see how it impacts both your legal standing and your credit score.
FAQs Regarding: Verifying Debt Legitimacy & Creditor Behavior
How do I verify the legitimacy of a debt collector before responding?
Ask for debt verification in writing within 30 days of their first contact. They must prove they own the debt and that the amount is correct. You can also check their registration with the Texas Secretary of State and look them up in the CFPB’s complaint database.
Can a new debt buyer sue me if the original creditor already lost a case or the debt was settled?
Usually, no. If the original creditor lost or the debt was dismissed with prejudice, or you formally settled it, a new debt buyer typically can’t sue. They’re bound by what happened in the first case because they’re in “privity” with that original creditor.
Still, some debt buyers sue anyway, hoping you don’t know your rights or the debt’s past. If this happens:
1. Get proof of how the first lawsuit ended.
2. File an answer that brings up res judicata.
3. Demand full records of the debt’s chain of ownership.
4. Consider filing a complaint with the Consumer Financial Protection Bureau.
Many lawsuits from debt buyers fail because they can’t show they really own the debt or have the right to collect.
FAQs Regarding: Consumer Rights & Legal Help
Where can I get free help if I’m sued again for the same debt?
Look into:
1. Texas RioGrande Legal Aid
2. Legal Aid of NorthWest Texas
3. Your county’s law library for self-help materials
4. The Texas State Law Library website (it has forms for answering lawsuits)
5. Guide on How To Choose the Right Attorney in Texas
Federal benefits are generally protected from court-ordered garnishment, providing essential information about the legal exemptions that apply to these benefits. While debt collectors can potentially garnish wages or bank accounts, many federal benefits are exempt unless for specific obligations like taxes or support payments.
Conclusion
Texas law gives you strong protection against duplicate debt lawsuits—but only if you respond in time. By knowing how debt collection works, using defenses like res judicata, and talking to a trained consumer rights attorney if needed, you can block improper suits, protect your bank account, and safeguard your financial future.
Over the years, I’ve seen too many Texans lose by default because they ignored unfair lawsuits. Don’t fall into that trap. Know your rights, ask for proof, and don’t let yourself be scared by aggressive collection tactics. With the right plan, you can successfully fight being sued twice for the same debt.
Protecting yourself from unfair debt lawsuits starts with knowing your rights—and having the right legal help. Our Texas debt lawsuit defense attorneys are ready to listen, answer your questions, and help you develop a plan tailored to your needs. Reach out to us via phone number (888) 584-9614 or contact us online today to get started.
Disclaimer
The information in this article is for education only and is not legal advice. Every case has its own facts. If you’re dealing with a debt collection lawsuit, talk with a licensed Texas attorney who can look at your specific situation.
