What to Do if Sued by Unifund CCR LLC in Texas

Receiving a lawsuit notice from Unifund CCR, LLC can be confusing and overwhelming, especially because you have likely never heard of it. Unifund CCR LLC is not a bank, creditor, or loan company with which you took out credit. So, what exactly is it, why is it suing you, and what can you do about the lawsuit? In the article below, our Texas debt defense lawyers discuss what you should know about Unifund CCR LLC, why they sue people, and the steps you can take to protect your legal rights and resolve the lawsuit.

What Is Unifund CCR LLC?

Unifund CCR, LLC is a debt buyer and collector based in Cincinnati, Ohio. The company purchases charged-off debts from original creditors, such as banks, credit card companies, or other financial institutions, at a significant discount. Once Unifund CCR, LLC purchases these debts, they pursue the total outstanding amounts directly from consumers to make a profit.

Is Unifund Legitimate?

Yes, Unifund CCR, LLC is a legitimate company. It is also registered with the Texas Secretary of State as a bonded debt collector in Texas. Its file number is 20120060. However, that does not necessarily mean Unifund CCR, LLC has a valid lawsuit against you.

Why Is Unifund CCR, LLC Suing Me?

If Unifund CCR is suing you, it is likely because it is attempting to collect a debt purchased from an original creditor. For example, it may have bought your old debt from a credit card company for pennies on the dollar and is now trying to collect the total amount from you.

Before filing a lawsuit, debt buyers like Unifund CCR, LLC usually attempt to recover the debt through phone calls, letters, or other means. If these efforts fail, then Unifund may file a lawsuit in an attempt to collect the debt.

In many cases, Unifund hires law firms that specialize in debt collection to handle its collection efforts rather than handling it internally. In Texas, we often see lawsuits brought on behalf of Unifund by attorneys at Couch Lambert, LLC, formerly Couch, Conville & Blitt, LLC.

Do Not Ignore a Unifund Lawsuit

The biggest takeaway that our law firm tries to drive home is that you should never ignore a debt collection lawsuit. Even if you do not recognize the debt or believe you owe it, do not ignore it. Why? Because ignoring it can lead to serious consequences and more problems for you.

The court may automatically side with Unifund and issue a default judgment against you. This means that Unifund automatically wins the case without you contesting it or having any say in the matter.

With a default judgment, Unifund can take further legal action against you, such as freezing and seizing money from your bank accounts, placing liens against your property, or seizing your property to recover the debt. In Texas, a judgment lasts 10 years and can be renewed.

Filing an Answer or a lawsuit response is the only way to protect yourself from a default judgment. Our Texas debt defense lawyers will discuss this step more below.

 

How to Beat Unifund CCR, LLC in a Texas Debt Collection Lawsuit

If Unifund sues you, you have legal options to resolve the lawsuit. You may be able to get the case dismissed, win in court, or resolve it through settlement negotiations or bankruptcy. Our Texas debt defense attorneys recommend taking the following steps when facing a Unifund lawsuit:

1. Contact a Texas Debt Defense Lawyer

We recommend consulting with an experienced debt defense lawyer in Texas as soon as possible. At Warren & Migliaccio, we provide a free consultation. During this consultation, we will review the claims against you, take time to understand your unique situation, and help you determine your best options for moving forward. We will also discuss your next steps to protect your legal rights and avoid a default judgment.

If you decide to work with us on your case, we will handle the legal process for you. A few ways we help include:

 

• • Drafting and filing your response to the lawsuit

• • Demanding debt validation from Unifund CCR

• • Assessing the strengths and weaknesses of Unifund’s case

• • Challenging the debt if there are errors or weaknesses

• • Determining the best defense strategy for your situation

• • Helping you obtain the best possible results for your case

Our team has extensive experience and success in defending Texans against debt collection lawsuits. We aim to obtain the best possible results for our clients, starting with case dismissal. If we cannot get the case dismissed, we will help you resolve it through settlement negotiations, fighting it in court, or through alternative debt relief.

If Unifund already has a judgment against you, then do not lose hope. We can review your situation and help you determine the best course of action to move forward.

2. Respond to the Lawsuit

As we mentioned earlier in the article, the only way to protect yourself from a default judgment is to respond to the lawsuit. You respond by filing an Answer with the appropriate court by the applicable deadline and serving a copy of your response to Unifund and its attorney. If you have an attorney, they will handle this process for you.

You can use our guide about how to respond to a debt collection lawsuit as a resource. However, generally, your response should address every claim Unifund makes against you in its complaint. You can also raise any defenses you have in the Answer.

3. Demand Debt Validation From Unifund CCR, LLC

It is your right to request debt validation from Unifund CCR, LLC, and you should exercise this right. Unifund CCR, LLC carries the burden of proof to establish that the debt is valid and accurate and that you owe it. It must also prove that it has the legal right to collect the debt.

When debts are bought and sold, it is not uncommon for debt buyers to have problems proving their case. If there are significant weaknesses or errors in Unifund’s case, it could lead to the case being dropped by Unifund or dismissed by the court.

4. Evaluate Your Potential Defenses

Depending on your situation, you may have one or more solid defenses to challenge the lawsuit or fight it in court. For example, some common defenses to debt collection lawsuits include:

 

• • Mistaken or stolen identity. If you do not recognize the debt, it may be a result of identity theft or mistaken identity.

• • Incorrect debt amount. The amount claimed may be inaccurate or inflated.

• • Lack of assignment. Unifund CCR, LLC may not have proper documentation showing they have the right to collect the debt.

• • Expired statute of limitations. Debt collectors have a certain amount of time to pursue debt collection through litigation. In Texas, it is four years. If the statute of limitations has expired, then the debt is time-barred.

• • Debt already paid. If you have already paid the debt and have evidence to prove it, you can use this as a defense to get the case dropped.

• • Debt discharged in bankruptcy. If you have been through the bankruptcy process and the debt in question was discharged, then Unifund does not have the legal right to collect it.

5. Explore Your Legal Options

You have a few different options for dealing with a debt collection lawsuit in Texas. Your best course of action will depend on the unique circumstances surrounding the case and your financial situation. However, your options generally include:

 

• • Negotiating a settlement. You may consider negotiating a settlement if you recognize the debt and Unifund CCR, LLC has a strong case against you. You may be able to settle on a reduced amount of debt or set up a manageable payment plan.

• • Fighting the lawsuit. You can fight the lawsuit in court if you have a solid defense. If you challenge the lawsuit, it may get dismissed or go to trial. While a trial takes more resources and longer to resolve, it may be worthwhile, depending on your situation.

• • Seeking alternative debt relief. If your overall debt situation is too much to handle, seeking bankruptcy may be a viable option for you. Filing for bankruptcy will put an automatic stay on any collection efforts, including the Unifund CCR LLC lawsuit. It will also help you get back on financial track by discharging your unsecured debts or restructuring your debt through a manageable monthly payment.

Schedule a Free Consultation With Our Texas Debt Defense Attorneys

If you are facing a Unifund lawsuit, then do not hesitate to schedule a free consultation with our Texas debt defense lawyers. We are happy to review the claims against you, discuss your unique situation, and help you understand your best options for moving forward. Call us at (888) 584-9614 or contact us online today to schedule your consultation.