Debt Collection Lawsuit Texas

debt collection lawsuit texas

Debt Collection Lawsuit Texas

Debt collectors file lawsuits for one reason: they know it’s an effective method for collecting on a debt.

Their goal is get a default judgement because you failed to respond to the lawsuit. A default judgement enables them to access your bank accounts and make other aggressive collection efforts they otherwise would not have had access to. If you do respond, their goal remains to get a judgment.

The bottom line is if you are facing a debt collection lawsuit in Texas, the worst thing you can do is ignore it. It’s tempting to hope the problem goes away, especially if you think the debt is not legitimate. But ignoring the problem only makes it worse and can actually turn a debt you are not legally obligated to pay into one that reflects poorly on your credit.

What Should You Do If You’re Faced with a Debt Collection Lawsuit in Texas?

The first thing that will happen if you are being sued is the service of the summons. You’ll be presented with a summons that is the official notification of pending legal action against you.

If you receive a summons, read it, and determine what it says to do. Pay special attention to the deadline. In most cases, it will be about 20 to 30 days from the day you were served, but it can be a shorter period of time. You must act within this time or the debt collector can be granted a default judgment.

Your next step is to contact a lawyer. You’ll need to respond to the summons with an answer and a lawyer can do this for you. They can also explain all of your options and help you figure out what to do next.

Do I Need to Pay the Debt?

Many times, debt collection lawsuits can be settled for a significant discount by a debt relief law firm.

There are instances in which a person is pursued for a debt that is not theirs. Despite there being a mistake, they can be held responsible for the debt if they do not handle the situation correctly.

In other cases, a debt was originally theirs, but the statute of limitations has run out on collecting the debt, so despite owing the money, there is no legal standing for the collector to make you pay. However, it is possible for you to trigger a reset of the statute of limitations and the collector will have another four years or more to pursue you for the debt.

If the debt is legitimately yours and the statute of limitations has not run out, you can assume you’ll be held responsible for the debt. However, there are ways you can still avoid having to pay the full balance it if you are unable to do so. Bankruptcy is often the best solution for helping you deal with debts you can no longer afford to pay but before considering this a lawyer should be contacted to assist you with resolving your debts.

If you’d like to know more or you’ve been notified of a debt collection lawsuit against you, we can help. Contact 1.800.220.4318 for more information.

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