Breach of Contract
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When a creditor or debt collector files a collection lawsuit, the primary cause of action is Breach of Contract. The creditor is alleging that you breached your contract to pay a debt. A debt buyer claims that they are an assignor of the original creditor. In other words, they step into the shoes of the original creditor to collect the debt.
The statute of limitations to sue for debt on a breach of contract is 4 years in Texas. The statute of limitations varies by state.
To prevail on a breach of contract claim, the creditor must prove:
1) A valid contract existed
2) performance or tendered performance by the plaintiff
3) breach of the contract by the defendant
4) damages sustained by the plaintiff
Another claim that creditors use is “Account Stated“. If you have been sued by a creditor for a debt, contact us at Weston Legal.