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, explain how a lawyer can help, even in challenging financial circumstances, and explore your options when facing 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 the court system. 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 like 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 in a Texas court. This lawsuit outlines the amount owed, the basis for the debt, and seeks a judgment in their favor.
Getting Served with the Lawsuit:
Once the lawsuit is filed, you’ll be served 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 with the court within the designated time frame, typically 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: Even after a lawsuit is filed, you can still try to negotiate a settlement with the collector. 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. You’ll then be served with legal papers, which will detail the lawsuit and provide deadlines for responding.
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, which essentially allows the debt collector to legally collect the debt, 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: An experienced lawyer can meticulously examine the lawsuit filed against you. Texas law offers certain protections to debtors, and a lawyer can ensure the debt collector followed proper procedures. For example, the Texas Debt Collection Act outlines how debt collectors can communicate with you and the limitations on their actions [Texas Debt Collection Act, Texas Finance Code § 392.401 et seq.]. By reviewing the lawsuit, your lawyer can identify any potential errors or violations of the law. These errors could be grounds for dismissal of the lawsuit or a reduction in the amount you owe. By meticulously reviewing the lawsuit, your lawyer can identify any potential errors or violations of the law. These errors could be grounds for dismissal of the lawsuit or a reduction in the amount you owe. Some common errors to look for include:
- Improper Service of Process: As mentioned earlier, improper service of the lawsuit can be grounds for dismissal. A lawyer can verify that service was done correctly according to Texas Rules of Civil Procedure, Rule 106 [[invalid URL removed]]. This includes ensuring the process server followed the proper procedures and that you were indeed served the documents.
- Statute of Limitations: Texas has a statute of limitations for debt collection lawsuits, which varies depending on the type of debt. For example, the statute of limitations for written contracts (such as credit card agreements) is four years [Texas Civil Practice and Remedies Code § 16.004, [[invalid URL removed]]]. If the debt collector filed the lawsuit outside the statute of limitations, it could be dismissed. A lawyer can determine the applicable statute of limitations for your specific case and assess whether the lawsuit was filed within the allowed timeframe.
- Errors in the Amount Owed: The lawsuit may contain errors in the amount you allegedly owe. A lawyer can request verification of the debt from the debt collector and compare it with your own records. This includes analyzing any late fees, interest charges, or other penalties added to the original debt to ensure they comply with Texas law.
- 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: Depending on your financial situation, a lawyer can advise you on various debt relief options beyond simply negotiating with the debt collector. This could include:
- Debt Management Plan: This involves consolidating your debts into a single, lower monthly payment [National Foundation for Credit Counseling, https://www.nfcc.org/resources/debt-management-plans/].
- 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, https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics]. 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 agree that you owe the debt, the amount is correct, and that the company in question now owns the debt, you probably do need to pay them at least a portion of the amount to resolve the issue. However, when the amount is too high to pay, or the details are not what they should be, that is when you need an attorney to assist 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. 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 team boasts extensive experience in handling debt collection lawsuits in Texas. We understand the nuances of Texas law and the tactics employed by debt collectors. This deep understanding allows us to develop effective strategies tailored to your specific situation.
- Compassionate Representation: We recognize the emotional toll of debt collection lawsuits. Our attorneys approach each case with empathy and understanding. We’ll take the time to listen to your concerns and guide you through the legal process with patience and respect.
- Free Consultations: We offer free consultations to discuss your debt collection lawsuit. This allows you to get a clear understanding of your options and how we can help, without any upfront financial commitment.
- Understanding Your Situation: We believe in a personalized approach. Before formulating a strategy, we’ll take the time to thoroughly understand your financial circumstances, the details of the debt, and any communication you’ve had with the collector. This comprehensive approach ensures our representation is tailored to your unique needs.
- Skilled Negotiators: Our attorneys are adept negotiators. We’ll work tirelessly to reach a favorable settlement with the debt collector, potentially reducing the amount owed, establishing a manageable payment plan, or even achieving a complete debt waiver if the situation allows.
- Trial-Ready When Necessary: While negotiation is often the preferred course of action, we are not afraid to go to court if necessary. Our attorneys are experienced litigators who will fiercely advocate for your rights in court and ensure the debt collector adheres to the law.
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 and obtain 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
Being sued by a debt collector can be a scary experience, but you don’t have to face it alone. The good news is, there are options available, even if you’re facing financial hardship. A lawyer can be a valuable resource in navigating a debt collector lawsuit, protecting your rights, and exploring solutions to manage your debt.
At Warren & Migliaccio, we understand the complexities of debt collection lawsuits in Texas and are committed to helping our clients achieve the best possible outcome. We offer free consultations, so you can discuss your specific situation with an experienced attorney at no upfront cost.
Don’t hesitate to take control of your financial well-being. Call us today at (888) 584-9614 to schedule your free consultation and get the legal guidance you deserve. We look forward to partnering with you on your path to financial peace of mind.