Quick Answer: What courts handle debt collection cases in Texas?
If you owe ≤ $20,000, file in Justice Court; for $20,001–$250,000, file in County Court at Law; over $250,000 or seeking injunctions, file in District Court.
- Justice Court (Tex. R. Civ. P. 502.5): debts ≤ $20,000.
- County Court at Law (Tex. Gov’t Code § 25.0003): debts $20,001–$250,000.
- District Court (Tex. Civ. Prac. & Rem. Code § 16.004): debts > $250,000 or injunctions.
Wondering what courts handle debt collection cases in Texas? You’re not alone. Many people aren’t sure where their case will be filed or which court will make the final decision—and that matters more than you might think.
In Texas, the court where a debt collection lawsuit is filed depends on the amount of the debt. For amounts up to $20,000, cases are typically filed in Justice Courts. These are the most common courts for credit card debt cases, and once you’re served, you usually have 14 days to respond. If the amount in dispute is between $20,001 and $250,000, the case may be filed in a County Court. For claims exceeding $250,000, the case goes to a District Court, which generally handles more complex or high-stakes financial matters.
Understanding which court is handling your case is crucial because each one follows specific procedures, deadlines, and requirements. Responding on time—and in the correct manner—can be the difference between a favorable outcome and a default judgment against you.
This article explains not only which courts handle different debt collection lawsuits in Texas but also how deadlines work and how the statute of limitations may affect your case. In some situations, if a creditor files too late, the case could be dismissed entirely.
Being served with a lawsuit from a debt collector can be stressful. But knowing what court you’re dealing with—and how to respond—can give you back a sense of control. We help North Texas families navigate these legal issues every day and offer free consultations to help you protect what matters most. Understanding where your case is being heard is the first step in building a strong legal defense.
Understanding the Texas Courts That Hear Debt Collection Cases
| Court Level | Dollar Limit | Key Features |
|---|---|---|
| Justice Court | Up to $20,000 | Informal rules, limited discovery, 14-day answer deadline—knowing the exact date you must respond is critical to avoid default |
| County Court at Law | $20,001 – $250,000 or appeals | Formal Tx. Rules of Civ. Proc., discovery opens, jury optional—be aware of the specific date for answer deadlines |
| District Court | Over $250,000 or complex relief | Full discovery, pre-trial motions, potential injunctions—track all important dates for filings and responses |
Practical Scenario:
For example, a $7,800 credit card lawsuit filed in JP 4-1, Dallas County, would fall under the jurisdiction of Justice Court. However, if you miss the 14-day deadline to respond, a default judgment could be entered. Hence, potentially leading to your bank account being frozen within weeks.
Additionally, it’s important to note that each court require specific forms for filing answers or motions. Therefore, using the correct forms and submitting them by the required deadline is essential to stay in compliance and protect your legal rights.
Jurisdiction Snapshot: Which Court Gets Your Case?
- Firstly, Justice Court – claims ≤ $20k
- Also, County Court at Law – appeals plus $20k-$250k
- Likewise, District Court – claims > $250k or suits seeking injunctions
The amount of unpaid debt involved in the case determine court’s jurisdiction. Both the original creditor and a collection agency have the legal right to file a lawsuit; however, the court must have proper jurisdiction over the debt amount in question.
If the creditor files the case in the wrong venue, you have the right to challenge it. You can file a motion under Texas Civil Practice & Remedies Code § 15.035.
Texas Justice Courts: The Front Line for Debt Claim Cases ≤ $20,000
- Firstly, filing Rules: Tex. R. Civ. P. 508(a) streamlines pleadings. You must use the correct form when filing your answer in Justice Court.
- Also, hearing Timeline: Trials typically set 60-90 days after your answer. Be sure to include your current mailing address on all court filings to ensure you receive official correspondence.
- More Help: See our detailed guide ➜ /justice-court-debt-lawsuit-defense
Filing Fees & Service Costs by County (2025)
| County | Filing Fee | Constable Service | Typical Total Cost |
|---|---|---|---|
| Dallas | $54 | $80 | $134 |
| Collin | Varies | Varies | Varies by Pct. |
| Denton | $54 | $75 | $129 |
Warning: These fees are considered court costs and are usually added to the judgment if the collector wins. Fees are subject to change and may vary between precincts.
Attorney Migliaccio on Winning in JP Court
A few months back, a Frisco teacher was sued in a Denton County JP court by a debt buyer over a $7,500 credit card account she didn’t recognize. After hiring, we quickly filed her answer. However, I knew that relying solely on the standard disclosures wouldn’t be enough to uncover the actual proof we needed. In Justice Court, it’s common that you must get the judge’s direct permission to request more specific evidence.
So, we took the next step and filed a motion asking for a court order—specifically demanding the bill of sale that would show the collector had legitimately purchased her account. Although their attorney objected, we countered by explaining that you can’t sue someone without proving you have the legal right to collect on the debt. Fortunately, the judge agreed with our position and ordered them to produce the required documents.
As it turned out, they couldn’t. The week of the trial, the debt collector voluntarily dismissed the case—what’s called a nonsuit. My client was relieved and thrilled. “That was our emergency fund,” she told me. “You made them prove it, and they just couldn’t.”
Ultimately, this case is a perfect example of how understanding and using procedural rules—even in small claims court—can protect a family’s financial security when it matters most.
County & District Courts: When Debt Lawsuits Get Bigger
Lost in Justice Court? You may file a de-novo appeal within 21 days; the case starts fresh in County Court (Tex. R. Civ. P. 506.3). County and District Courts allow:
- Firstly, jury demands (fee $50; Tex. Gov’t Code § 51.604)
- Secondly, full discovery—interrogatories, RFPs, depositions
- Also, complex motions (summary judgment, injunctive relief)
Thus, if the creditor wins the lawsuit, the court will issue a court judgment against the debtor. This court judgment allows the creditor to collect the debt by methods such as property seizure, wage garnishment, or other legal action/s.
How Debt Collectors Choose Where to Sue
Venue is governed by Tex. Civ. Prac. & Rem. Code § 15.035. Collectors may file: Texas debt collectors must comply with the Texas Debt Collection Act.
- Firstly, where you signed the contract
- Secondly, where you live now
- Also, where records are kept
Hence, both original creditors and a debt collection agency or collection agency can file lawsuits in Texas courts to recover unpaid debts. Likewise, the amount owed is also a key factor in determining the proper venue for a debt collection lawsuit.
Common Tactics
- Firstly, filing in distant counties to deter responses
- Also, timing suits around holidays when mail is ignored
- Similarly, splitting balances to stay under the $20k cap
- Also, suing days before the 4-year statute expires
- Likewise, harassing behavior can include continuous phone calls and contacting your family or employer to pressure payment.
External Resource: Texas Attorney General Consumer Protection Division
Responding to a Texas Debt Collection Lawsuit
Court | Answer Deadline |
Justice Court | 14 days from service |
County/District | 20 days + next Monday at 10 a.m. (Tex. R. Civ. P. 99) |
Step-by-Step Checklist For Responding To Debt Collection Lawsuit
- Start by marking the deadline on your calendar the very day you’re served. In most cases, you’ll have a short window to respond—typically by the Monday after 20 days.
- Next, draft your written answer. This is your opportunity to deny the allegations and assert any legal defenses you may have, such as the statute of limitations or mistaken identity.
- Once your answer is ready, file it properly. You can file it through the e-filing system, deliver it in person at the courthouse, or send it by certified mail with return receipt requested. Always keep your filing confirmation and receipts as proof.
- After filing, be sure to serve the plaintiff (or their attorney) with a copy of your answer. This is a required step—don’t skip it.
- From here, stay organized. Track all important dates and deadlines. If applicable, you may also want to initiate Rule 194 discovery early in the case to gather relevant information.
- Finally, respond promptly to every court notice or filing. Ignoring paperwork—even by accident—can lead to a default judgment against you, which is much harder to reverse.
Warning: Answer forms are available from the court or online legal resources.
More detail ➜ /how-to-answer-debt-lawsuit-texas
Protecting Exempt Property & Avoiding Wage Garnishment
| Asset | Exempt? | Statute |
|---|---|---|
| Homestead (unlimited value) | ✓ | Const. Art. XVI, § 51; Prop. Code § 41.001 |
| Personal property ≤ $50k (single) / $100k (family) | ✓ | Prop. Code § 42.001 |
| Retirement accounts & life insurance cash value | ✓ | Prop. Code § 42.0021 |
| Current wages (most consumer debt) | ✓ | Const. Art. XVI, § 28 |
| Second home, investments, cash > caps | ✕ | — |
Texas bans wage garnishment for credit-card debt; however, creditors may still pursue non-exempt bank funds after a judgment is entered against you. In other words, while your paycheck might be safe, your bank account could still be at risk if it contains non-exempt funds.
Moreover, certain types of income—such as Social Security and retirement account payments—are generally protected from debt collection in Texas. These forms of income fall under what Texas and federal law refer to as exempt money or protected property.
Simply put, exempt money is shielded from collection efforts like garnishment, attachment, or seizure.
Common examples include:
- Firstly, federal benefits (e.g., Social Security, SSI)
- Also, unemployment benefits
- Likewise, certain types of retirement income
Importantly, this protected status doesn’t change based on whether or not a debt has been paid. Even if you owe money, these funds remain legally off-limits to most creditors.
Thus, if a creditor or debt collector tries to seize exempt money or protected property, you have legal rights under both Texas and federal law to fight back. Therefore, it’s essential to understand what funds are protected and take prompt legal action if your rights are violated.
Case Study: U.S. Bank, N.A. v. Ragland, No. 05-18-00833-CV (Tex. App.—Dallas 2019)
In one notable example, the Dallas Court of Appeals reversed a default judgment that had been entered against a consumer. So, what exactly happened? The court determined that the official lawsuit papers served on the defendant were legally defective. Specifically, they failed to include the mandatory warning language required by the Texas Rules of Civil Procedure. As a result of this procedural flaw, the court ruled that the service was improper—and therefore, the judgment was voided.
The key takeaway here is that procedural rules matter—a lot. In debt lawsuits, it’s not just about whether you owe the debt; it’s also about whether the creditor followed the legal process correctly at every step.
That’s why it’s so important to double-check whether you were properly served with the lawsuit. If the service was flawed or missing required legal language, you may have grounds to challenge the judgment. In fact, in some situations, this could even lead to getting your frozen bank account released or halting additional collection actions altogether.
Settle, Fight, or File Bankruptcy: Choosing Your Best Path
Option | Pros | Cons |
Settle | Ends case quickly; possible discount; no trial risk | Must pay something; may hurt credit; possible tax on forgiven debt; if you are unable to pay or unable to negotiate a settlement, the creditor may pursue further collection actions |
Fight | Force proof of ownership; raise 4-year statute defense (Tex. Civ. Prac. & Rem. Code § 16.004) | Time-consuming; potential fees; stress |
Bankruptcy (Ch. 7/13) | Automatic stay stops all suits; discharge eligible debt | Credit impact; means-test eligibility; if you are unable to pay your debts and owe money you cannot resolve, bankruptcy may be your only option |
Thus, if you owe money and are unable to resolve the debt through payment or negotiation, it is important to understand your options and the potential consequences of each path.
Frequently Asked Questions (FAQs): What Courts Handle Debt Collection Cases in Texas
How do I respond to a debt collection lawsuit in Texas?
File a written answer within 14 days for Justice Court (Tex. R. Civ. P. 502.5) or by 10 a.m. on the Monday after 20 days for County/District Court (Tex. R. Civ. P. 99). Deny incorrect claims and state defenses like statute of limitations. Steps:
1) Firstly, file with court clerk
2) Similarly, serve plaintiff’s attorney
3) Likewise, request debt validation. You can also send a dispute letter to the debt collector to formally challenge the debt and request verification—send it in writing, ideally by certified mail, and keep documentation
4) Also, keep receipts
Related guide ➜ /how-to-answer-debt-lawsuit-texas
Note: Answer forms and dispute letter templates are available from the court or online legal resources.
How long do I have to respond to a debt lawsuit in Texas?
You get 14 days to file an answer in Justice Court. In County or District Court, the deadline is 10 a.m. on the Monday after 20 days from service. Miss it and the creditor can seek a default judgment that freezes bank funds.
Warning: Be sure to mark the correct date on your calendar so you do not miss the answer deadline.
Can debt collectors garnish wages in Texas?
No, Texas law blocks wage garnishment for consumer debts like credit cards or medical bills. Instead, wage garnishments occur on specific obligations such as unpaid taxes, including federal taxes, child support, or defaulted student loans. As a result, collectors typically pursue bank levies or liens, but only after obtaining a court order. [Texas Constitution Art. XVI, § 28]
Texas Small Claims Court Limit (2025)
In 2025, Justice Court handles cases up to $20,000, including attorney fees and costs. However, for cases above that cap, parties must file in County Court at Law for amounts between $20,001 and $250,000, or in District Court for claims exceeding $250,000. Notably, the small claims limit applies to the original debt amount only, as defined under the Fair Debt Collection Practices Act (FDCPA).
Which Texas court handles debt over $20,000?
Debts of $20,001–$250,000 are handled in County Court at Law. For example, County Court or District Court hear your case if you have a large personal loan exceeding $20,000, depending on the total amount. On the other hand, claims over $250,000 — or those seeking injunctions or other non-monetary relief — must be filed in District Court. Meanwhile, Justice Courts only hear cases involving amounts up to $20,000. [Texas Government Code § 25.0003]
What happens if I don’t respond to a debt collection lawsuit in Texas?
Ignoring service doesn’t make you judgment-proof. In fact, the court can enter a default judgment, which allows the creditor to levy non-exempt bank accounts, record property liens, and even add attorney fees. In Justice Court, this can happen as quickly as 14 days after service. Therefore, if you fail to file an answer — or file it too late — the creditor automatically wins by default. Without a timely response, the court may assume you owe the debt and proceed to enter a default judgment against you.
Can creditors take my home in Texas?
No, Texas homestead laws protect your primary residence from creditors, regardless of its value. This protection applies to most consumer debts, including credit cards, medical bills, and general judgments. However, there are exceptions — only mortgage lenders, tax authorities, and home equity lenders have the legal right to force a sale of your home. [Texas Property Code § 41.001]
How long do collectors have to sue me for credit-card debt in Texas?
Collectors have four years from your last payment or written promise to pay. After that, the claim is time-barred debt and you can raise the statute-of-limitations defense if sued. The time period for the statute of limitations usually starts when you miss a payment on a debt. [Texans Civil Practice & Remedies Code § 16.004]
How do I appeal a Justice Court debt judgment in Texas?
After a default judgment is entered, you have two main options. First, you can file a motion for new trial within 14 days. Alternatively, you may submit a de novo appeal within 21 days. To move forward with the appeal, you must also post an appeal bond, make a cash deposit, or file a fee-waiver statement. Once the appeal is accepted, the case begins again from scratch in County Court. [Texas Rules of Civil Procedure 506.1]
Can I move the lawsuit to my home county?
Yes, you can. If a debt collector files a lawsuit in the wrong precinct or county, you have the right to file a sworn motion to transfer venue — but you must do so within 21 days of filing your answer. Under Texas law, proper venue is generally where you signed the contract, where you currently live, or where the defendant’s records are maintained. [Texas Civil Practice & Remedies Code § 15.035]
Take Action Before Deadlines Pass
Most Texas debt suits start in Justice Court, but the stakes rise quickly. Whether you’re facing a small Whether you’re dealing with a small claims case or a more complex district court matter, taking responsibility starts with understanding your rights and acting within critical deadlines. At our firm, we’re committed to putting families first by offering clear, practical legal guidance every step of the way.
Don’t let confusion about court procedures jeopardize your financial future. Every court operates under specific rules and timelines—and missing even one deadline can seriously impact your case. By understanding the legal process and responding on time, you can take meaningful steps to defend yourself against debt collectors or collection agencies.
We proudly serve clients across the entire state of Texas in debt defense matters, guiding you from the moment you’re served through to the final resolution.
Call our law firm at (888) 584-9614 or contact us online to schedule a same-day strategy session. We’ll review your specific situation, explain your options, provide you legal aid and help you develop a defense strategy that protects what matters most—your family’s financial security.
Disclaimer: This article provides general legal information about debt collection procedures in Texas courts and should not be considered legal advice. However, each case is unique, and outcomes depend on specific facts and circumstances. Consult a debt defense lawsuit attorney for advice about your particular situation.
