Quick Answer
- File your Answer within 14 – 20 days of service
- Raise defenses like the 4‑year statute of limitations or lack of standing
- Request proof of ownership (chain of assignment, billing statements)
In Texas, consumers who answer credit‑card lawsuits within time limit and raise common defenses like the four‑year statute of limitations or lack of standing often win dismissal or settle for 40 – 60 percent less than claimed. Missing the 14‑ or 20‑day answer deadline usually leads to an automatic default judgment. About 14.5% of consumers are sued by credit card companies for non-payment.
Being served with a credit‑card lawsuit feels like a losing battle. The process can feel overwhelming, especially for those unfamiliar with the legal system. Lawsuits are often filed over unpaid credit card debt, but understanding what happens when a credit card company sues you can help you prepare and defend yourself. After 180 days of non-payment and exhausting collection efforts, creditors or debt buyers may take legal action to recover the debt. Yet, across Texas, consumers who show up and assert the right and affirmative defenses often walk away paying far less—or nothing at all. We help families statewide fight back.
Most often, the people sued are individuals overwhelmed by multiple debts or legal actions. After a charge-off, a collection agency or debt collection agency may purchase various type of debt and file a lawsuit to collect.
Why Credit‑Card Companies Sue — and How Often They Lose
📊 Credit Card Lawsuits in Texas – Fiscal Year 2023
What happens when people don’t respond to a debt lawsuit?
| Court Type | % of Cases Ending in Default Judgment |
|---|---|
| All Texas trial courts | ≈ 62% (about 6 in 10 cases) |
⚠️ What does “default judgment” mean?
It means the creditor automatically wins because the person being sued didn’t respond in time.
💡 Tip: Responding to the lawsuit forces the creditor to prove you owe the debt—which they often can’t.
In many cases, a creditor will file a lawsuit against consumers despite the costs. Why? Nearly 7 in 10 credit card lawsuits end in default, meaning the creditor automatically wins—simply because the defendant never files an Answer. But showing up changes everything. Once a response is filed, the burden shifts to the creditor, who must now prove every part of the claim—including that they actually own the debt.
It’s also essential to review your credit report to verify whether the debt being claimed is legitimate. Many of these lawsuits are brought by debt buyers, who often lack the documentation needed to back up their claims.
In court, the creditor must prove not only that the defendant owes the debt, but also that all legal procedures—such as proper service and accurate filing—have been followed. Often, creditors fall short. Cases are frequently dismissed due to insufficient evidence, missing records, or procedural mistakes like improper service or incomplete documentation.
By taking action and asserting your rights, you dramatically increase your chances of a favorable outcome.
Common Lawsuit Triggers
- Balance over $2,700
- Account “charged‑off” and sold to a debt buyer
- No payments for 6 months or longer
- Last payment near the four‑year limitations deadline
Related:
Personal Experience from Attorney Christopher Migliaccio
Recently, I met a young father in a Denton County Justice Court. He was being sued by a debt buyer for $8,943 on a credit card he hadn’t used for five years.
As we discussed his options, I noticed their lawyer only had a robo-signed affidavit and a spreadsheet. However, they lacked crucial documents—like the original credit agreement and a clear chain of assignment.
This gap highlighted why proving the chain of assignment is so critical. In debt collection lawsuits, collectors must present proper documentation to establish their legal standing in court. Without the original credit agreement, their case can quickly fall apart.
So, when the judge asked for full proof of ownership, we immediately objected. We firmly asserted his right to demand specific documentation that supports the claim against him.
What stood out most, though, was the look of relief on his face when the judge dismissed the case entirely.
Had the debt already been paid, that too would have been a strong defense. But in this case, the lack of evidence was enough.
After nearly 20 years of practicing law, I’ve seen time and again that showing up, filing a timely written response, and demanding the right evidence can shift the entire outcome.
Of course, every debt collection case has its own facts—but the core legal principles remain consistent. Knowing and asserting your rights is absolutely essential.
When families trust us with their debt defense, we take that responsibility seriously—because we know what’s at stake.
If you’re facing a similar situation, remember: there is always a way forward.
Four Proven Texas Defenses That Swing the Odds
| Defense | Quick Test | Evidence to Gather |
|---|---|---|
| 1. Statute of Limitations (4 years, Tex. Civ. Prac. & Rem. Code § 16.004) | Was your last payment > 4 years ago? | Old statements, bank records, billing statements |
| 2. Lack of Standing | Is there a complete chain of assignment? | Purchase agreements, affidavits, billing statements |
| 3. Incorrect Amount Claimed | Do fees/interest rate look inflated or is the credit card balance inaccurate? | Monthly statements, cardholder agreement, billing statements, credit card balances |
| 4. Debt Settled or Discharged | Was the debt settled or discharged? | Settlement letter, bankruptcy discharge, debt relief |
Procedural errors and violations of debt collection laws can serve as powerful legal defenses in a credit card lawsuit. Under state law and civil procedure, defenses such as lack of standing, expiration of the statute of limitations, and improper service are critical tools for challenging a creditor’s claim—whether in small claims court or higher courts.
To succeed, creditors must support their case with specific and accurate documentation, including billing statements and proof of the correct credit card balance. If the debt is disputed, you have the right to challenge both the amount owed and whether the creditor is legally entitled to collect.
It’s important to remember that credit card debt is classified as unsecured debt, meaning it’s not tied to any collateral. As such, it’s governed by specific state laws that often provide consumer protections.
In many cases, debt settlement offers a practical alternative to trial. It can provide a path to resolve the debt directly with the creditor or debt collector—potentially for less than the full amount claimed.
YES / NO Checklist
- ___ Was my last payment more than four years ago?
- ___ Has the plaintiff shown every sale from the original creditor?
- ___ Does the claim/counterclaim include fees not in my contract?
- ___ Do I have paperwork proving the debt was settled or discharged?
Checking Yes to any line may signal a winning defense.
Procedural Traps That Lead to Default Judgments
| Court Level | Time to File Answer | How the Clock Runs |
|---|---|---|
| Justice of the Peace | 14 days | Starts the day after service |
| County / District | 20 days + next Monday | Answer due first Monday after day 20 |
The court summons is the official notice that starts the answer deadline. Miss a deadline and the creditor wins automatically.
How to File an Answer
- Firstly, draft a short, written Answer denying the allegations and listing your defenses.
- Secondly, file it with the court clerk before the deadline (in person or e‑file).
- Also, serve a copy on the plaintiff’s lawyer.
- Likewise, request debt validation for credit card payments history and chain of assignment.
Related: Removing a Judgment Lien Before Closing on a Home.
Settlement vs. Trial — What Texas Families Actually Pay
Typical settlement range with solid defenses: 40 – 60 % of the amount claimed. A strong defense can often lead to a favorable settlement agreement or even a favorable outcome in court, reducing the amount owed or resulting in the dismissal of the case.
| Lump Sum Payment | Monthly Payment Plan | |
|---|---|---|
| Pros Larger discount; ends court case fast | Pros Easier on cash flow | |
| Cons Need cash up front | Cons Longer term; more interest; risk of default |
Debt settlement is another option to resolve debt, especially when negotiating with creditors or debt collectors. Hiring an attorney for a flat fee can help manage legal fees during settlement negotiations, providing cost certainty and professional guidance.
Leverage Boosters
- Debt buyer lacks records
- Balance under $5,000
- Possible Fair Debt Collection Practices Act (FDCPA) violations
FDCPA & Texas Debt Collection Act Violations Can Flip the Case
Top violations we uncover:
- Firstly, robo‑signed affidavits with the wrong balance
- Also, harassing calls after 9 p.m. or at work
- Likewise, false wage‑garnishment threats (illegal for consumer debt in Texas)
- Also, suing the wrong person (identity theft)
- Similarly, filing on time‑barred debt past the four‑year limit
- Also, illegal collection actions, including unauthorized wage garnishments
Third party debt collectors, collection agencies, and debt collection agencies are often the source of these violations, using aggressive tactics that may cross legal boundaries.
If proved, federal law awards up to $1,000 plus attorney fees. Texas law can add even more—turning you from defendant into plaintiff.
Texas Case‑Law Spotlight – Absolute Resolutions Invs., LLC v. Cureton, 497 S.W.3d 332 (Tex. App.—Dallas 2016)
“A debt buyer must produce competent evidence tracing each assignment from the original creditor to itself; otherwise it lacks standing to sue.” — Fifth Court of Appeals
In Cureton, a debt buyer filed suit over a $5,000 credit card balance but presented only generic billing records as evidence. The trial court dismissed the case, and the appellate court later affirmed the decision—emphasizing that every link in the chain of ownership must be properly authenticated. Courts consistently require specific documentation, including the original credit agreement, valid proof of assignment, and clear account statements, to establish standing and support a creditor’s claim.
When the statute of limitations is at issue, a more detailed file may be necessary to determine whether the debt is still legally enforceable. Unlike traditional contracts, credit card agreements often fall into a different legal category and require nuanced interpretation in court.
That’s why we regularly cite Cureton when debt buyers show up with spreadsheets instead of proper contracts. It’s a clear reminder that evidence—not assumptions—wins cases.
When Bankruptcy Provides a “Fresh Financial Start”
For North Texas families overwhelmed by multiple lawsuits, Chapter 7 bankruptcy may offer the cleanest path to relief. Consulting with a qualified bankruptcy attorney can help determine whether this option is appropriate for resolving debt. In some cases, individuals may be considered judgment proof—meaning they have no significant assets or income for creditors to collect—which can sometimes deter further legal action.
However, when collection pressure becomes too much, bankruptcy provides an automatic stay that immediately halts lawsuits, wage garnishments, and creditor harassment the moment we file. This powerful legal protection gives families much-needed breathing room.
Trusted organizations like the American Bar Association and the National Association of Consumer Advocates—along with many consumer-focused nonprofits—offer valuable resources for those struggling with debt.
If you’re unsure where to start, free consultations are available to help you explore your bankruptcy options and take the first step toward financial stability.
- Firstly, automatic stay: Stops lawsuits, collection actions, wage garnishments, and calls the moment we file.
- Secondly, Texas exemptions: Protect your homestead, one vehicle per driver, retirement accounts, and most personal property.
- Also, quick timeline: Typical discharge in ≈ 120 days.
We handle Chapter 7 cases exclusively in Dallas, Collin, Denton, Rockwall, and Tarrant Counties. Free bankruptcy consultation: (888) 584‑9614.
Common Mistakes We’ve Seen Texans Make
- Firstly, ignoring the citation → default judgment
- Also, admitting debt on a phone call → restarts limitations clock
- Likewise, making a $5 “good‑faith” payment without a written deal → revives old debt
- Similarly, skipping court after a mediation notice → same as missing trial
Call our law firm for the best legal aid before these traps cost you.
Frequently Asked Questions
What are the chances of winning a credit card lawsuit in Texas?
In Texas, defendants who file an Answer on time and raise defenses like statute of limitations or lack of standing win dismissal or settle for 40 – 60 % less in about half of contested cases. Nearly 70 % of credit‑card lawsuits end in default judgment when defendants don’t respond.
Firstly, file Answer within 14‑20 days
Also, raise time‑barred debt defense
Likewise, challenge chain of assignment
How do you win a credit card lawsuit in Texas?
To win, file an Answer denying claims and assert defenses like expired statute of limitations or insufficient proof of debt ownership. This shifts the burden to creditors who often lack required documentation. You can assert defenses in your answer, such as disputing the debt’s accuracy, claiming the debt is past the statute of limitations, or arguing that you’re not the responsible party.
Firstly, gather statements showing last payment
Also, request complete chain of assignment
Likewise, negotiate if defenses are weak
What happens if you ignore a credit card lawsuit in Texas?
Ignoring a credit‑card lawsuit results in automatic default judgment for the full amount plus court costs, allowing creditors to freeze bank accounts and place liens on property. Texas prohibits wage garnishment but permits other collection methods.
Default judgment requires no proof
Bank accounts can be frozen
Homestead remains protected
What evidence does a debt collector need to win?
Debt collectors must prove ownership through complete chain of assignment from original creditor, plus account statements, original contract, and exact balance with interest calculations. Missing any element often forces dismissal or settlement. Creditors often lack proper documentation to prove their claims in court, particularly if they are debt buyers.
Authenticated purchase agreements
Original cardholder agreement
Itemized statement of charges
Can you settle a credit card lawsuit after being served?
Yes, negotiate settlement at any point before judgment, typically for 40 – 60 % of the claimed amount with strong defenses. Contact plaintiff’s attorney after filing Answer and secure written agreement with dismissal “with prejudice.”
Start offers at 30‑40 %
Get credit reporting terms
Require written confirmation
How long do creditors have to sue for credit card debt in Texas?
Creditors have exactly four years from last payment or charge under Texas Civil Practice & Remedies Code § 16.004. After this statute of limitations expires, raise this defense in your Answer for immediate dismissal.
Track payment history carefully
Avoid restarting limitations clock
Include the defense in your Answer
Can wages be garnished for credit card debt in Texas?
No. Texas law prohibits wage garnishment for credit‑card debt and consumer debts. However, judgment creditors can freeze bank accounts, seize non‑exempt funds, and place liens on real property outside homestead protection.
Keep exempt funds separate
Social Security remains protected
File exemption claims promptly
What defenses help win a credit card debt lawsuit?
Strong defenses include four‑year statute of limitations, lack of standing without ownership proof, incorrect amount owed, and prior settlement or bankruptcy discharge. Any solid defense forces creditors to prove every element.
Firstly, statute of limitations (most powerful)
No chain of assignment
Lastly, inflated fees or interest
What happens if you miss the answer deadline in Texas?
Missing the 14‑day deadline in Justice Court or 20‑day deadline in County/District Court leads to automatic default judgment without creditor proving their case. File Answer immediately upon service to preserve defenses.
Firstly, calendar deadline immediately
Secondly, no extensions typically granted
Also, default difficult to reverse
Does bankruptcy stop a credit card lawsuit immediately?
Yes. Filing Chapter 7 bankruptcy triggers the automatic stay under 11 U.S.C. § 362 that instantly halts all collection lawsuits, garnishments, and creditor calls nationwide. Protection begins the moment the petition is filed. If you have filed for bankruptcy and included a debt in the bankruptcy case, it is illegal for collectors to pursue that debt post-discharge.
Firstly, immediate nationwide protection
Secondly, stops pending garnishments
Also, includes collection calls
Conclusion & Next Steps
Showing up, asserting defenses, and seeking counsel can drastically improve your chances of beating a credit‑card lawsuit. Since 2006, our Lead Counsel Verified team has been positively influencing Texas families by protecting what matters most. Responding to a debt collection lawsuit increases the chances of winning the case, compared to ignoring the lawsuit.
Schedule your free consultation today, call us at (888) 584‑9614 or contact us online. Our experienced Texas based debt lawsuit defense lawyers are ready to answer your questions and provide the best legal advice across Texas.
