What to Do if Jefferson Capital Systems Sues You in Texas

Has Jefferson Capital Systems sent you a summons or notice of a lawsuit for debt collection? You may wonder why a company you likely have never heard of is suing you when you never took out a line of credit from it. So, is the lawsuit a scam or legitimate, and what do you do, if anything? Our North Texas debt defense lawyers discuss steps to take if you get served a Jefferson Capital Systems lawsuit below.

What Is Jefferson Capital Systems, LLC?

Jefferson Capital Systems, LLC is a debt buyer and collector. It is a legitimate company headquartered in St. Cloud, Minnesota. According to its website, it has additional U.S. operations in Minneapolis, Minnesota, and Denver, Colorado.

Why Is Jefferson Capital Systems Suing Me?

Debt buyers purchase outstanding debt accounts from creditors for pennies on the dollar. Then, they pursue the total outstanding debt, which is how they make money. If Jefferson Capital Systems is suing you, it likely means your original creditor has sold your account to it.

Your original creditor may have charged off the debt as bad debt, meaning the creditor has exhausted its means to collect the debt. Rather than filing a lawsuit against you, it sold the debt to Jefferson Capital Systems to recover a percentage of its losses.

Who Represents Jefferson Capital Systems?

Debt buyers like Jefferson Capital Systems use many tactics and extensive resources to collect a debt, including filing lawsuits. Jefferson Capital Systems will likely retain a debt collection lawyer to pursue the lawsuit against you on its behalf. The law firms Scott & Associates, P.C., and Rausch Sturm LLP handle many of Jefferson Capital’s debt collection cases in Texas.

I Am Being Sued by Jefferson Capital Systems. What Do I Do?

Unfortunately, a Jefferson Capital Systems lawsuit is not a scam. If you are sued by Jefferson Capital Systems, do not ignore it. Debt collection companies rely on consumers not to fight back. When a consumer dismisses the lawsuit, the debt collection company can get an easy default judgment.

You should provide a written response to the lawsuit that addresses Jefferson Capital’s allegations and your defenses and demands proof of the debt. In Texas, you may have as little as 14 days to respond. We recommend having an experienced debt defense lawyer on your side to file this on your behalf and guide you through the legal process.

Consumers often have viable defenses available to them in debt collection cases. Depending on your unique situation, you may be able to get the debt dismissed, negotiate a settlement, or explore legal options such as bankruptcy to discharge the debt. But, if you ignore the lawsuit and do not appear in court, Jefferson Capital will likely get a default judgment. 

What Is a Default Judgment? 

A default judgment is a ruling granted by a judge in favor of the plaintiff (Jefferson Capital Systems, LLC) in the event that the defendant (you) fails to respond or show up in court. If you get a default judgment against you, Jefferson Capital Systems would be entitled to collect the amount it claims you owe. Even if you can defend yourself against the lawsuit, it would be entitled to collect the money from you.

What Happens in a Default Judgment?

If you get a default judgment against you, Jefferson Capital Systems is legally entitled to the money. Depending on the debt, it may be able to collect from you through:

• Bank garnishment. Bank garnishment orders your bank to freeze your accounts and seize funds to pay off the debt.

• Wage garnishment. Wage garnishment orders your employer to hold part of your wages to pay the debt.  This is a concern for out of state Default Judgements since Texas does not allow wage garnishment on Texas Default Judgments.  

• Property lien. A property lien is a claim on your property. If you do not pay the debt, then Jefferson Capital Systems could seize your property to pay toward your debt.

• Property seizure. Jefferson Capital Systems may be able to seize certain assets and personal property to pay your debt.

Discuss Your Legal Options With a Debt Defense Attorney

We recommend discussing your unique situation with our North Texas debt defense attorneys. We understand how stressful it can be to get sued by a company you may have never heard of before. However, you may have strong defenses available to you, and an experienced debt defense lawyer can help you find them. 

A few examples of defenses include, but are not limited to:

• • Inaccurate records. The records Jefferson Capital Systems has about the account may be false. The amount of debt may be wrong, and in some cases, the debt owner can be incorrect.
  • Statute of limitations. Under Texas law, a debt collector only has four years to file a claim to pursue recovery of a debt. Jefferson Capital Systems cannot sue you if the time limit has passed.

• Law violations. The Fair Debt Collection Practices Act (FDCPA) protects consumers from aggressive and unfair collection tactics. However, this law does not always stop collection companies from harassing or threatening consumers. If Jefferson Capital Systems breaks the law, you may be able to get the case dismissed and pursue damages.

Why Should I Hire a Debt Defense Lawyer for My Case?

At Warren & Migliaccio, we help our clients reach favorable outcomes in their cases, including possible debt dismissal and settlement negotiation. In some cases, we also help our clients pursue debt resolution options such as discharging debt through bankruptcy.

When you hire a law firm for your defense, your attorney will handle your case from start to end, giving your case a better chance of a favorable outcome. Our North Texas debt defense lawyers help our clients in the following ways:

• Answering your legal questions
• Determining and helping you understand your legal options
• Reviewing the claim against you
• Preparing and filing a response to the lawsuit on your behalf
• Investigating your case and gathering evidence to strengthen your defense
• Handling legal communication on your behalf
• Defending you in court
• Negotiating a favorable settlement if appropriate

If we find Jefferson Capital used illegal tactics to try to collect money from you, we can also help you pursue damages. 

Contact Our Debt Defense Attorneys About Your Situation

If Jefferson Capital Systems sent you a summons in Texas, do not ignore it. Protect yourself by contacting a lawyer about your situation as soon as possible. We welcome you to contact us about scheduling a consultation. Our North Texas debt collection defense lawyers can answer your legal questions and help you understand your best legal options. Get started defending yourself by filling out our contact form or calling our office.