Why You Should Not Ignore a Debt Collection Lawsuit in Texas

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Ignoring a debt collection lawsuit in Texas can lead to serious financial consequences that may last for decades. When you fail to respond, the court is likely to issue a default judgment in favor of the creditor. This judgment doesn’t just include the original debt—it also includes attorney’s fees, court costs, and ongoing post-judgment interest. Over time, the total amount owed can grow significantly, turning a small debt into a substantial financial burden.

Consequences of Ignoring a Debt Collection Lawsuit

Default Judgment

If you fail to respond to a lawsuit, the court will issue a judgment in favor of the creditor, assuming the creditor’s claims are accurate.
A default judgment allows the creditor to take further actions to collect the debt, such as garnishing non-exempt funds, placing liens on property, or executing other collection remedies.

Judgment Includes Additional Costs

A judgment typically includes more than the original debt:

Attorney’s Fees:
- Creditors can recover reasonable attorney’s fees, which often amount to 25% or more of the total debt.
Court Costs:
- Filing fees, service of process fees, and other court expenses are added to the judgment.
Post-Judgment Interest:
- Interest accrues on the unpaid judgment balance at the current post-judgment interest rate (minimum 5% in Texas, up to 15%).

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How Post-Judgment Interest Works

Post-judgment interest is designed to compensate creditors for the time they must wait to collect the judgment. This interest compounds annually, meaning the total amount owed grows each year the judgment remains unpaid.

Example of Debt Growth Due to Post-Judgment Interest

Let’s assume:

Original Debt: $2,000
Attorney’s Fees: $500 (25% of the debt)
Court Costs: $300
Post-Judgment Interest Rate: 6% (average rate) (but can be much higher)
Total Initial Judgment: $2,800 ($2,000 + $500 + $300)

Yearly Interest Accrual:

Interest = Judgment Amount × Interest Rate

Year 1: $2,800 × 6% = $168 interest added
Year 2: $2,968 × 6% = $178 interest added
Year 3: $3,146 × 6% = $189 interest added

Over time, the debt grows exponentially.

Debt Growth Over 20 Years:

Using compound interest formulas, after 20 years at 6% annual interest, the total amount owed is approximately $9,010—more than 4.5 times the original judgment.

How Long a Judgment Lasts in Texas

Judgment Duration

In Texas, a judgment is valid for 10 years from the date it is signed by the court.
The creditor can renew the judgment by filing an abstract of judgment or similar paperwork before the 10-year period expires. This effectively extends the judgment for another 10 years, allowing creditors up to 20 years or more to collect.

Enforcement Remedies

During the life of the judgment, creditors can:

What to Do if You’re Sued

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- An attorney can help you navigate the lawsuit, assert defenses, and negotiate favorable terms. If you choose not to have an attorney defend you then you must file your answer and be prepared to go to Court.
File an Answer:
- Respond to the lawsuit within the deadline (usually 14 days after being served in Texas Justice Court cases).

Prepare for Trial:
- You must familiarize yourself with the Texas Rules of Civil Procedure and be prepared to defend yourself in Court. Most creditors will show up in Court and present the evidence against you to the judge. The myth that they do not show up is generally false.

What to Do if You’re Sued

Hire Weston Legal

We have defended tens of thousands of debt collection lawsuits. An attorney can help you navigate the lawsuit, assert defenses, and negotiate favorable terms. If you choose not to have an attorney defend you then you must file your answer and be prepared to go to Court.

File an Answer:

Respond to the lawsuit within the deadline (usually 14 days after being served in Texas Justice Court cases).

Prepare for Trial:

You must familiarize yourself with the Texas Rules of Civil Procedure and be prepared to defend yourself in Court. Most creditors will show up in Court and present the evidence against you to the judge. The myth that they do not show up is generally false. You can also attempt to work out a settlement but this should also be done through an attorney to ensure the settlement is enforceable.

Final Thoughts

Ignoring a debt collection lawsuit can lead to a default judgment, which includes not only the original debt but also attorney’s fees, court costs, and years of post-judgment interest. Over decades, a relatively small debt can balloon into a significant financial burden, as judgments in Texas can last for 20 years or more. If you are sued, it’s critical to respond promptly and seek legal advice to protect your rights and minimize the long-term impact of the debt.

Mike Weston, Esq.

Mike Weston is a seasoned debt lawsuit defense attorney and founder of Weston Legal. Since 2005, Mike has devoted his career to compassionately helping consumers struggling with issues involving their personal and business debts. Mike is grateful to have been able to help tens of thousands of clients become empowered with knowledge on the path to financial stability.