If you have received a lawsuit from Midland Credit Management (MCM) in Texas, you are not alone. Midland Credit Management is one of the largest debt collectors in the country, and it frequently files lawsuits against consumers in an attempt to collect on debts. If you find yourself facing a Midland Credit Management lawsuit, you may be feeling overwhelmed and unsure of your next steps. However, understanding the legal process and your rights can help you navigate the situation and protect your interests.
In this blog post, I will walk you through what to do if you are facing a lawsuit from Midland Credit Management in Texas. As a bankruptcy attorney with years of experience representing clients in financial distress, I can tell you that there are options to help resolve your debt and protect your financial future. If you are facing a Midland Credit Management lawsuit or dealing with debt collection, we encourage you to call us at 888-584-9614 for a free consultation.
Understanding Midland Credit Management
Midland Credit Management, also known as MCM, is a debt collector that specializes in collecting on debts that it purchases from original creditors. These debts could include credit card debt, medical bills, personal loans, and other types of unsecured debt. When a debt goes unpaid for a long time, creditors may sell it to a company like MCM to recover some of the amount owed. In turn, MCM becomes the new owner of the debt and takes over the collection efforts.
If you have received a lawsuit from Midland Credit Management, it means they are trying to recover money they claim you owe them. While this may seem daunting, you have legal rights and options for responding. The most important thing is to avoid ignoring the lawsuit, as failing to respond could lead to a judgment against you.
Steps to Take if You Receive a Midland Credit Management Lawsuit in Texas
1. Read the Lawsuit Carefully
When you receive a lawsuit from Midland Credit Management, it will come with official legal documents. These documents typically include a summons and a complaint. The summons will explain that you are being sued, while the complaint will outline the details of the debt they are attempting to collect, including the amount owed, the origin of the debt, and any interest or fees. It is crucial that you read the lawsuit carefully and understand the claims they are making.
At this stage, you may feel overwhelmed, but remember that you do not need to handle this alone. Consulting an attorney can help you understand your legal options and develop a strategy for responding.
2. Check the Statute of Limitations
In Texas, there is a statute of limitations on how long a debt collector can sue you for unpaid debts. For most types of unsecured debt, including credit card debt, the statute of limitations is four years. This means that if the last payment you made or the last activity on the debt occurred more than four years ago, the debt may no longer be enforceable in court.
If you believe the debt is too old to be sued over, you may have a strong defense. However, it’s important to note that the statute of limitations does not automatically stop Midland Credit Management from suing you. If the statute of limitations has expired, you must raise this defense in court. An experienced attorney can help you with this process and ensure your rights are protected.
3. Verify the Debt
One of the most important steps in responding to a Midland Credit Management lawsuit is to verify the debt. Debt buyers like Midland Credit Management often purchase old debts from creditors, but they may not have all of the documentation to prove that the debt is valid. In many cases, they may not have the original agreement, transaction history, or other documentation to back up their claims.
Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request verification of the debt. You can ask Midland Credit Management to provide proof that you owe the debt and that they have the right to collect on it. If they are unable to provide this verification, they may be required to stop pursuing the debt.
If you have doubts about the validity of the debt, it is essential that you request this verification promptly. Failing to ask for verification could weaken your case if the debt is disputed in court.
4. Respond to the Lawsuit
Once you have reviewed the lawsuit and considered your options, it is crucial that you respond to the legal action in a timely manner. In Texas, you have 14 days to respond to the lawsuit after being served. If you fail to respond within this time frame, the court may enter a default judgment against you. This means Midland Credit Management would win the case by default, and they could take actions like garnishing your wages or placing liens on your property.
To respond to the lawsuit, you must file an answer with the court. An answer is a formal document where you admit or deny the allegations made in the complaint and present any defenses you may have. If you are unsure how to respond or what defenses to raise, it is highly recommended that you consult with an experienced bankruptcy or debt defense attorney.
5. Consider Negotiating a Settlement
In some cases, Midland Credit Management may be open to negotiating a settlement. If you owe the debt but cannot afford to pay the full amount, negotiating a settlement could be a viable option. Debt collectors like Midland Credit Management are often willing to accept less than the full amount owed if it means they will recover something.
A settlement could involve a lump sum payment for less than the total debt or a payment plan that allows you to pay over time. Before entering into any settlement agreement, make sure you understand the terms and that the agreement is in writing. Additionally, it’s a good idea to work with an attorney to ensure the settlement is fair and legally binding.
6. Consider Filing for Bankruptcy
If you are overwhelmed by debt and facing multiple lawsuits, filing for bankruptcy might be an option to consider. Bankruptcy can eliminate or reorganize your debts, including those owed to Midland Credit Management. Filing for Chapter 7 or Chapter 13 bankruptcy can stop debt collection efforts, including lawsuits and garnishments, and provide you with a fresh financial start.
If you are considering bankruptcy, it’s crucial to speak with an experienced bankruptcy attorney. They can help you understand the process, determine whether bankruptcy is the right option, and guide you through the filing process.
How We Can Help You
Dealing with a Midland Credit Management lawsuit in Texas can be stressful, but you don’t have to face it alone. At Warren & Migliaccio, L.L.P., we specialize in helping clients navigate debt collection lawsuits, including those filed by Midland Credit Management. Our experienced attorneys can help you review the lawsuit, verify the debt, negotiate with creditors, and even file for bankruptcy if necessary.
Final Thoughts
A Midland Credit Management lawsuit does not have to lead to a default judgment or financial disaster. By understanding your rights, responding appropriately, and seeking legal assistance, you can handle the situation effectively. Whether you choose to dispute the debt, negotiate a settlement, or explore bankruptcy, there are paths forward to protect your financial future.
If you are facing a Midland Credit Management lawsuit in Texas, don’t wait—contact us today for a free consultation and let us help you find the best solution for your situation.
