Are you currently facing a debt collection lawsuit in Texas? While facing a debt lawsuit may feel overwhelming and uncertain, you have legal options to resolve it. Also, taking the right legal action can make all the difference in the outcome. Depending on the circumstances specific to your case, you may be able to get the lawsuit dismissed. Below, our Texas debt collection defense attorneys discuss how to get a debt lawsuit dismissed.
Step 1: Schedule a Consultation With a Texas Debt Defense Attorney
Regardless of whether a credit card company or debt buyer is suing you, we recommend consulting with experienced attorneys. An attorney can help you in many ways, from providing essential legal guidance to helping you understand your legal options. Likewise, advising you on the best legal action to take, gathering evidence, and representing and defending you through case resolution.
At Warren & Migliaccio , we represent and defend individuals like you in debt collection lawsuits throughout Texas. We have extensive experience and a successful track record in assisting our clients in resolving debt lawsuits. In some cases, we are able to get a lawsuit against our client dismissed. A few ways we help our clients include, but are not limited to:
If a creditor or debt collector sues you, we encourage you to contact us. During a consultation, we can review the claims against you. We will provide legal help to determine your best options for putting the lawsuit behind you. Call us at (888) 584-9614 or contact us online to schedule your consultation today.
Step 2: Answer the Lawsuit
In Texas, you have a specific amount of time to file a formal response to the lawsuit, depending on the court handling your case. You have 20 days to respond in any Texas county or district court. In Texas justice courts, sometimes referred to as a small claims court, you have 14 days to respond to the court summons.
You should always answer the lawsuit within the allotted time frame and in a timely manner. You can use our guide about responding to a debt lawsuit to help you with your response and the court forms you will need. But, we recommend working with experienced debt resolution lawyers. They will protect your interests and ensure you do not make any mistakes that could hurt your case.
If you miss this deadline, the debt collector may win the court case and get a default judgment against you. A default judgment means you lose the case, and the debt collector wins, even if you do not recognize the debt and believe you do not owe it. A default judgment can result in serious consequences, including a court order to freeze your bank account and the loss of access to your money. In my years of helping folks with debt problems, a bank account garnishment is one of the most frustrating a difficult situations to deal with. So, if you face a debt lawsuit, ensure that you file your answer to the lawsuit.
Step 3: Collect Evidence to Support the Case Dismissal
Your first step in securing the case’s dismissal is to gather evidence that can challenge the debt collector’s claims. First, you should demand debt validation from the debt collector. Just because someone claims you owe them money does not mean they have the legal right to sue. It is common for debts to be bought and sold many times. The debt collector must prove that the debt is yours, that you owe it, and that it has the right to collect it .
You should look for any errors with the debt collector’s claim. Scrutinize the lawsuit for discrepancies, like wrong names, debt amounts, or any other legal terms that may be incorrect. For example, think about the following questions:
- Do you recognize the debt?
- Has the debt already been paid?
- Do you actually owe the debt, or is it someone else’s debt?
- Is the amount of debt correct?
- Does the collection agency have proof that it has the right to collect it?
You should also seek legal advice to assess other factors that may help get the case dismissed, such as:
- Statute of limitations. In Texas, creditors and debt collectors only have a certain amount of time to pursue a debt collection lawsuit. This time limit is called a statute of limitations. It is four years in Texas . You cannot be sued for the alleged unpaid debt if the time limit has passed. Therefore, if a creditor or debt collection agency sues you after this period, you can dismiss the lawsuit.
- Proper service. Were you properly served with the lawsuit? If you were not notified under Texas law, then the case might be invalid, and in some situations, it could be moved to federal court.
If you identify errors in the lawsuit against you, you may be able to have it dismissed.
Step 4: Decide on Your Defense Strategy on How to Get a Debt Lawsuit Dismissed
Based on the standings of the debt collector’s case, your attorney will decide on a defense strategy for your debt collection case.
For example, if you believe the lawsuit should not proceed, you can file a motion to dismiss the lawsuit. Meanwhile, you can take proactive steps in the legal process to protect your rights with the help of debt attorneys. Another way to avoid litigation is to negotiate a settlement outside of court . You may be able to negotiate a lower debt amount than the original claimed debt through a settlement agreement with debt collector. You may also have the option to negotiate paying the settlement amount over a period of time instead of in a single payment. For example, you could settle a $10,000.00 lawsuit for $6,000.00 and then set up a payment plan to pay the $6,000 settlement over 12 months. This would give allow you to pay $500.00 per month and that can help you with your monthly budget.
Understanding that even if you cannot secure a dismissal of the case, you may still have the potential to win the lawsuit through court hearings is also crucial. You may have a strong defense to challenge and fight the lawsuit in court. But in this situation, you will need to set and wait for a court date. This can take several months or longer, and can make the case drag on for a long time. But if you have a good defense, it will most likely be worth waiting for the court date. However, waiting on trial with a debt collector is similar to playing a game of chicken because both parties often delay resolution, hoping the other will back down, resulting in mounting stress and the uncertainty of the eventual outcome, all while each side tries to outlast the other in a high-stakes standoff.
Exploring Bankruptcy
Another potential option to explore is bankruptcy, especially if collection agencies are aggressively pursuing multiple debts. A bankruptcy attorney from our law firm can explore this option with you to determine whether you may qualify to discharge your debts through bankruptcy. This is a good option if you have debts other than the one alleged in the lawsuit. For instance, if you have thousands of dollars of credit card debt, then it may be in your best interest to file bankruptcy and address all of your debt with one bankruptcy filing versus battling each creditor individually. You may also want to consult a financial advisor to better understand how bankruptcy might impact your overall financial situation.
You may also consider counter-suing the debt collector, potentially seeking to recover attorney fees if the debt collector has violated your rights. For example, you might have grounds to counter-sue if the debt collector violated the Fair Debt Collection Practices Act (FDCPA).
Facing a debt lawsuit? Discover the steps to take, from responding promptly to exploring your legal options for dismissal.
Schedule a Consultation With Warren & Migliaccio Today
Facing a debt collection lawsuit in Texas is undoubtedly stressful but know that you have legal options to resolve it and put it behind you. At Warren & Migliaccio , we help individuals all over Texas facing debt collection lawsuits from creditors and debt collectors.
If you are currently facing a debt lawsuit, do not hesitate to contact us about your situation. We are happy to review the claims against you. We will discuss how to get a credit card lawsuit dismissed in Texas, and determine how we can help you.
“If we cannot dismiss your case, we can assist you in resolving it through alternative means. For example, you may have a solid defense to fight the case in court. You may be able to negotiate a settlement that is less than the original amount of debt claimed. The most important message to glean from this article is that when you face a debt lawsuit, you have options. Anyone that tells you that you can only settle the lawsuit, or you must go to court is not providing you all options.
Our experienced debt defense attorney is here to help you assess your options and take the next steps with confidence. Call us at (888) 584-9614 or contact us online, and we will be in touch with you soon to schedule a free consultation.
