Hi there, and welcome to the Warren & Migliaccio blog! I’m Christopher Migliaccio, founding partner here at the firm. Today, we’re tackling a topic that can feel overwhelming: being sued by a debt collector. Let’s face it, debt happens, and sometimes, despite our best efforts, we fall behind. If you’ve received a lawsuit from a debt collector in Texas, you’re likely feeling stressed and unsure what steps to take. The good news? You don’t have to navigate this alone, and even if you’re facing financial hardship, a lawyer can still be a valuable resource.
Here at Warren & Migliaccio, we specialize in helping Texans navigate debt-related legal issues, including credit card lawsuits. In this blog, we’ll break down the situation and explain how a lawyer can help, even in challenging financial circumstances. We will also explore the options you have during a debt collector lawsuit in Texas.
What is a debt collector lawsuit? How does one get sued by a debt collector?
A debt collector lawsuit occurs when a company or individual attempts to collect a debt you owe through court. This typically happens after they’ve exhausted other means of collection, such as phone calls and letters. Here’s a breakdown of how it unfolds:
The Road to a Lawsuit:
- Debt Goes Unpaid: You accumulate a debt with a creditor (e.g., credit card company, medical provider, etc.).
- Debt Collection Begins: The creditor attempts to collect the debt themselves or sells it to a debt collection agency. The collector will then contact you to try and recover the funds.
- Debt Collection Efforts Continue: If initial attempts fail, the debt collector may resort to more aggressive tactics. These may include frequent phone calls or reporting the debt to credit bureaus.
- Lawsuit Filing: If the debt remains unpaid, and the collector believes they have a strong case, they may file a lawsuit against you. This lawsuit outlines the amount owed, the basis for the debt, and seeks a judgment in their favor.
Getting Served with the Lawsuit:
After the plaintiff files the lawsuit, they will serve you with legal papers. This process involves a process server officially delivering the documents to you, typically in person. The papers detail the lawsuit and provide deadlines for responding to the court.
What Happens After Being Served:
Ignoring the lawsuit is not an option. Doing so could lead to a default judgment, which essentially allows the debt collector to legally collect the debt, potentially through wage garnishment or bank levies.
Here are your options after being served:
- Respond to the Lawsuit: This involves filing a written response, typically within 20 days in Texas. In your response, you can dispute the debt, the amount owed, or the collector’s right to sue you.
- Negotiate with the Debt Collector: You can still try to negotiate a settlement with the collector, even after the plaintiff files the lawsuit. This is where a lawyer’s expertise can be invaluable. As, they can leverage negotiation tactics to secure a more favorable outcome.
It’s important to remember:
- You have rights under Texas law that protect you from unfair debt collection practices. A lawyer can help you understand these rights and ensure the debt collector is following the proper procedures.
- Seeking legal guidance is crucial, even if you have limited financial resources. Many lawyers offer free consultations, and some may even be willing to work out a payment plan.
First Things First: Understanding the Lawsuit
Before diving into legal strategies, let’s get a clear picture of what you’re facing. When a debt collector sues you in Texas, they’re initiating a legal process to collect a debt they believe you owe. They’ll file a lawsuit with the court, outlining the amount owed and the basis for their claim. The court will serve you with legal papers detailing the lawsuit and providing deadlines for your response.
It’s crucial to take these papers seriously. Ignoring them won’t make the problem disappear. In fact, it could lead to a default judgment potentially through wage garnishment or bank levies.
What Can a Lawyer Do to Help?
Now, let’s address the big question: how can a lawyer help if you’re facing a debt collector lawsuit and have limited financial resources? Here’s the good news! A lawyer can offer a variety of valuable services that go beyond simply representing you in court.
- Reviewing the Lawsuit: A lawyer can confirm that the service of the lawsuit followed the Texas Rules of Civil Procedure, Rule 106. An experienced attorney can thoroughly examine the lawsuit filed against you, ensuring that debt collectors adhered to legal protections outlined in the Texas Debt Collection Act (Texas Finance Code § 392.401 et seq.). By reviewing the lawsuit, your lawyer can identify errors or violations that may lead to dismissal or a reduction in the amount owed. Common errors to look for include:
- Improper Service of Process: A lawyer can verify that the service complied with Rule 106, ensuring the process server followed proper procedures.
- Statute of Limitations: Texas has a statute of limitations for debt collection lawsuits, typically four years for written contracts. If the lawsuit was filed beyond this period, it may be dismissed.
- Errors in the Amount Owed: A lawyer can request verification of the debt and compare it with your records, checking for compliance with Texas law regarding late fees, interest charges, and penalties.
- Negotiating with the Debt Collector: Lawyers are skilled negotiators. They can work with the debt collector to try and reach a settlement agreement that’s more manageable for you. This could involve a reduced amount, a payment plan, or even a complete waiver of the debt.
- Exploring Debt Relief Options: A lawyer can advise on debt relief options beyond negotiating with the collector, based on your financial situation. This could include:
- Debt Management Plan: This involves consolidating your debts into a single, lower monthly payment [National Foundation for Credit Counseling].
- Chapter 7 Bankruptcy: This is a legal process that allows you to discharge most of your unsecured debts, such as credit cards and medical bills [US Courts]. It’s important to understand the long-term implications of bankruptcy. And a lawyer can advise you on its suitability for your situation.
Validate the debt and all of its details
When you speak to a debt collector of any kind, you must first get the company to validate the debt and its details. If you acknowledge the debt, confirm the amount, and verify the company owns it, you likely need to pay part of it. If the amount is too high or the details are incorrect, you need an attorney to help you. Furthermore, if the debt collection company is harassing you, an attorney can help you to stop the harassment.
Can You Afford a Lawyer? Let’s Talk Options
We understand that legal fees can be a concern, especially when you’re already facing financial hardship. So, here are some options to consider:
- Free Consultations: Many law firms, including Warren & Migliaccio, offer free consultations for discussing your debt collection lawsuit. This allows you to get initial legal guidance and explore your options without any upfront fees.
- Payment Plans: Some law firms may be willing to work out a payment plan with you.
- Legal Aid: Depending on your income level, you may qualify for free legal assistance from a legal aid organization. The Texas Legal Services Commission offers a directory of legal aid providers across the state [Texas Legal Services Commission, https://www.trla.org/].
Our firm, Warren & Migliaccio, L.L.P. will always work with you to find a payment structure that will work for you so we can help you to eliminate your debt and get your life back on track.
List of Debt Collectors That Often Sue People
The following is a list of companies that are well known to our law firm that have a reputation for frequently suing debtors.
- LVNV Funding LLC
- Cavalry SPV I LLC (Cavalry Portfolio Services LLC)
- Velocity Investments
- Midland Funding LLC
- Revco Solutions
- Aldous & Associates
- Central Portfolio Control
- Penn Credit
- Wakefield and Associates
- Unifin
- Pressler, Felt & Warshaw LLP
This is just a small sample of the many debt collectors out there who are known to sue individuals, but regardless of whether or not one of the companies above is suing you, our law firm can help you to solve the problem.
What Makes Warren & Migliaccio unique?
Being sued by a debt collector can be a stressful and overwhelming experience. At Warren & Migliaccio, we understand the complexities of debt collection lawsuits and the financial strain they can cause. Here’s why we can be the right partner in navigating this challenge:
- Decades of Experience: Our extensive knowledge of Texas law and debt collection tactics allows us to create effective, tailored strategies.
- Compassionate Representation: We understand the emotional impact of debt lawsuits and provide empathetic guidance throughout the legal process.
- Free Consultations: Get clarity on your options with our no-cost consultations—no financial commitment required.
- Personalized Approach: We take time to understand your unique financial situation and communication with collectors to ensure tailored representation.
- Skilled Negotiators: Our attorneys work diligently to negotiate favorable settlements, potentially reducing debt or establishing manageable payment plans.
- Trial-Ready: Finally, if negotiations fail, our experienced litigators are prepared to advocate for your rights in court.
We understand that debt collection lawsuits can feel like a David vs. Goliath situation. At Warren & Migliaccio, we’ll be your champion in this fight. We’ll leverage our experience, negotiation skills, and courtroom presence to protect your rights. We promise the best possible outcome for your case.
In the next section, we’ll delve deeper into exploring debt relief options a lawyer can advise you on, even if you don’t have the funds to pay off the debt in full.
Get Help With Your Debt Collection Lawsuit Now
Facing a lawsuit from a debt collector can be overwhelming, but you don’t have to go through it alone. Tough financial times don’t have to mean empty pockets; there are still opportunities out there. A skilled attorney can be your strongest ally in debt management. Think of them as a coach guiding you through the fray, preventing costly missteps and helping you recover from financial turbulence.
At Warren & Migliaccio, our experienced attorneys are well-versed in Texas debt collection lawsuits and are here to support you. Take the first step towards clarity by scheduling a consultation with us. We’ll work together to understand your challenges, address your concerns, and uncover the best solutions. Hence, when you join forces with us, you can breathe easy knowing our experienced team will be right there with you.
Take the first step toward regaining control of your financial future. Call us at (888) 584-9614 or contact us online to schedule your consultation today. With a trusted guide, the unknown becomes manageable – let’s move ahead with confidence.
