Facing a debt collection lawsuit in Texas can feel overwhelming and intimidating. However, do not panic or resign yourself to losing the lawsuit. You have legal options, and you may be able to get the case dismissed or win it in court. Below, our Texas debt collection defense lawyers break down the question “How do I win a debt collection lawsuit in Texas?” in a step-by-step guide to help you win the case.
Are you being sued for debt collection in Texas? If so, we encourage you to discuss your situation with our Texas debt resolution lawyers. We are here to review the claims against you and your options for putting the lawsuit behind you.
Step 1: Do Not Ignore the Lawsuit
One of the worst mistakes you can make when faced with a debt collection lawsuit in Texas is to ignore it. The most common reason individuals lose debt collection lawsuits is that they do not acknowledge the lawsuit or show up in court.
In Texas, ignoring a lawsuit does not make it disappear. It usually results in a default judgment against you or essentially an automatic win for the creditor or debt collector. A default judgment can lead to bank garnishment, or freezing your bank accounts, liens on your property, or property seizure to collect the alleged debt. A default judgment can also result in additional awards to the debt collector, such as interest on the debt, court costs, and attorney’s fees.
Step 2: Respond to the Lawsuit
The most crucial step in winning a debt collection lawsuit is to respond. After being served with a debt collection lawsuit, you typically have 20 days to file a written response with the court, called an Answer. However, if the justice court handles your case, you have 14 days to respond. Missing your deadline will likely result in the court awarding a default judgment in favor of the debt collector.
Your response should admit or deny each of the debt collector’s claims. You can also include affirmative defenses to the lawsuit, which are defenses you can prove with evidence. You can see our guide to responding to a debt collection lawsuit here. Once you complete your Answer, you must file it with the court and serve a copy to the debt collector or its attorney.
Keep in mind that creditors and debt collectors count on consumers not responding to the lawsuits. By filing a response, you increase your chances of a favorable case outcome.
Step 3: Verify the Debt
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After acknowledging the lawsuit and responding within the specified time, the next crucial step is to verify the debt. In some cases, individuals are sued for a debt they do not owe, the amount claimed may be incorrect, or the debt may not be collectible.
It is important to understand that the burden of proof is on the creditor or debt collector. The party suing you must be able to prove that the debt is yours. It must also prove the amount of debt is correct, it owns the debt, and it has the right to collect the debt.
If your original creditor is suing you, you should be able to review your records to assess the validity of the lawsuit claims. Compare your account statements with the creditor’s claims against you. Is the amount of debt correct? Did you make the charges? Has the debt already been paid?
In many cases, however, the party suing you is a debt buyer, not the original creditor. If this is the case, you should demand debt validation from the debt collector. The debt collector should provide the name of your original creditor, proof that it purchased your account, and information about the alleged debt.
Step 4: Assess Your Potential Defenses
When faced with a debt collection lawsuit, several defenses could be available to you depending on the specifics of your situation. These defenses may enable you to challenge the debt collector’s claims and potentially result in the dismissal or winning of the lawsuit.
In order to assess your potential defenses, there are a few critical questions you want to answer, including:
- Is the debt mine? Confirm that the debt is actually yours. Mistaken identity or stolen identity are potential defenses in a debt collection lawsuit.
- Is the debt amount accurate? Check the original debt amount and the breakdown of any additional charges. Sometimes, debt collectors may have inaccurate information, inflate amounts, or add unauthorized fees.
- Has the debt been sold? If the alleged debt has been sold to a debt buyer, confirm that the new party owns the debt and has the right to collect.
- Has the statute of limitations expired? In Texas, the statute of limitations for debt collection is four years. If the time limit has passed, then the creditor or debt collector cannot sue you for debt collection.
We recommend working with an experienced Texas debt resolution lawyer to help you answer these questions and build a strong defense strategy. An attorney can help you determine the best defenses for your situation and fight for your best interests.
Step 5: Explore Your Legal Options
Your best legal options to resolve the debt collection lawsuit depend on multiple factors, such as the circumstances of the case and your financial situation. A Texas debt defense attorney from our firm can help you understand which options might be the most effective and represent and defend you.
Fighting the lawsuit is one of your options. Depending on the strength of your defenses, you may be able to win the case in court. Challenging the lawsuit may also leverage negotiating a favorable settlement with the debt collector. In many cases, debt collectors do not want to chance losing the case or spend their resources on prolonged litigation.
If the debt is valid, you may be able to settle with the creditor or debt collector. Often, debt collectors are willing to accept less than the total amount of debt to close the case, especially if they know you are ready to put up a fight in court.
Depending on your financial situation, you may also explore bankruptcy as an option for debt resolution. It is essential to consult with a bankruptcy attorney to understand whether you may qualify for bankruptcy and the implications of this step.
Step 6: Schedule a Consultation With a Texas Debt Collection Defense Attorney
At Warren & Migliaccio, our Texas debt collection defense lawyers assist individuals like you in resolving collection lawsuits in Texas. We have significant experience and success defending our clients against large creditors and debt collectors. We handle cases throughout the state and welcome you to reach out to us. Our team may be able to help you win a debt collection lawsuit in Texas.
During a consultation, we can answer your legal questions and review and discuss the claims against you. Our attorneys are happy to discuss your legal options for resolving the case and how we can help you. Call us at (888) 584-9614 or submit our online contact form to get started.
