What to Know if Facing a FAMSA, Inc. Lawsuit for Debt Collection in Texas

Are you being sued by FAMSA, Inc. for debt collection? If so, it is normal to feel confused, worried, and unsure about how to proceed. You may wonder why FAMSA is suing you and what to do now. Below, our Texas debt collection defense lawyers discuss what you should know about FAMSA and what you can do if facing a FAMSA, Inc. lawsuit.

What Is FAMSA, Inc.?

FAMSA, Inc. is a retailer that offers a range of household items, including furniture, mattresses, appliances, and electronics. In the United States, it operates in Texas and Illinois. It has many retail locations throughout Texas. However, the company is a subsidiary of GRUPO FAMSA, a company headquartered in Monterrey, Mexico.

Why Is FAMSA, Inc. Suing Me?

FAMSA, Inc. provides consumer financing called FAMSA Credit for household product purchases in its stores. This means consumers can apply for credit with FAMSA to buy furniture and other home goods and pay for them over time. If FAMSA, Inc. is suing you, it is likely because the company alleges you have defaulted on your payments.

But what if you have never bought furniture from a FAMSA store? In addition to home furnishings, FAMSA offers personal loans to consumers under the lending name FAMSA Financial. While it offers personal loans in its retail stores, it also has separate loan branch locations across Texas. Therefore, it may be suing you due to a defaulted personal loan.   

Filing debt collection lawsuits against consumers is a common step for retailers like FAMSA, Inc. to try to recover the money it believes you owe. Unlike other retailers, however, FAMSA, Inc. seems to bring lawsuits against consumers using in-house attorneys. Rather than hire third-party debt collectors or law firms to pursue its collection lawsuits, it handles them on its own.

What Are My Options When Being Sued for Debt Collection in Texas?

Our Texas debt collection defense lawyers understand that facing a debt collection lawsuit is unnerving. You may consider ignoring it out of fear, uncertainty, or lack of funds, but you should not. Ignoring it will not make FAMSA and the lawsuit go away. 

In many cases, you may have several legal avenues you can explore to resolve the case and put it behind you. However, first, you must respond to the lawsuit. This response is called an Answer, and you file it with the court handling the case and send a copy to FAMSA. 

You must file this response quickly because there is a deadline. You may have as little as 14 days to file it, depending on which court handles the case. Failure to meet the deadline may result in a default judgment. 

A default judgment would mean that FAMSA automatically wins the case against you. 

By avoiding a default judgment, you have time to weigh your legal options for dealing with the lawsuit. A few examples of your potential options include:

• Getting the case dismissed. You are legally entitled to demand proof of the debt, including the amount owed and evidence that it is your responsibility. Sometimes, the debt may not be yours, or the amount claimed might be incorrect. The lawsuit may be dismissed if FAMSA, Inc. cannot provide satisfactory evidence.
• Settling the debt out of court. It is often possible to negotiate with a creditor to settle for a reduced amount. Resolving the case out of court allows both parties to avoid potentially lengthy and costly litigation. It also allows both parties to avoid the uncertainty of a final court judgment. 
• Fighting the case in court. You may consider fighting the case in the courtroom if you have strong defenses against FAMSA, Inc.’s allegations.
• Bankruptcy. Bankruptcy may be a potential legal option for you, depending on your financial situation. You may be able to discharge your debts through bankruptcy. Consider consulting with an experienced bankruptcy lawyer from our firm about whether bankruptcy may be an option for you. 

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How Can a Debt Collection Defense Lawyer Help Me?

A debt collection defense lawyer can be invaluable when facing a FAMSA, Inc lawsuit. During a consultation, your attorney can help you understand the claims against you and the next steps to take to protect your rights. When you decide to work with an attorney for your case, they will help you throughout the legal process. For example, a few ways an experienced attorney can assist you include:

• Evaluating the lawsuit. An experienced debt defense lawyer can analyze the strengths and weaknesses of the case and your financial circumstances. Based on their investigation, your attorney can determine the most effective course of action for your situation.
• Handling your response. If you choose to answer the lawsuit, which we recommend, your lawyer can draft and file it on your behalf. Your attorney will ensure you avoid a default judgment.
• Negotiating on your behalf. If settling the debt is your best option, your lawyer will negotiate with FAMSA, Inc. on your behalf. Your attorney will work toward securing a favorable settlement that works for you.
• Representing you in court. If your case progresses to court, having an attorney on your side can make a significant difference. They can present your defense, challenge the claims made by FAMSA, Inc., and work toward a favorable case outcome.

Reach Out to Our Texas Debt Collection Defense Lawyers Today

Confronting a debt collection lawsuit can be daunting, but you do not have to face this challenge on your own. At Warren & Migliaccio, our Texas debt collection defense lawyers help individuals resolve these cases. We help our clients defend themselves and reach the best possible outcome based on their circumstances.

Whether you need help responding to FAMSA’s lawsuit or want to discuss your potential legal options, we can offer the guidance and representation you need. We welcome you to contact us today to schedule a consultation. You can contact us online or call one of our offices at 888-584-9614. We have offices conveniently located in Dallas and Richardson but handle cases throughout the state of Texas.