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Dealing with a debt collection lawsuit

People in Texas may be deeply concerned about what to do if they receive a letter from a debt collector threatening a lawsuit. Their concerns may escalate if they learn that a case has been filed against them. This situation adds stress to the lives of people who are already struggling to pay their bills and facing calls from collection agencies. Over 70 million people across the country have dealt with collectors, and a full one-fourth of those felt threatened during their dealings.

As a result, people may be confused about what they can do to protect themselves and want to avoid the situation altogether. However, being aware of their rights under the law can help people to protect themselves. If people receive a summons and complaint over a debt, they should make sure to respond. Some people may feel like there is nothing they can do, but ignoring it can lead to a default judgment. People who are being sued can file an official answer by the specified deadline with the local court clerk.

Some people may want to challenge the collection agency’s right to sue at all. By the time a debt leads to a lawsuit, it has usually been sold at least once by the original creditor. A defendant can demand that the collection agency provide a signed credit agreement and documentation that it has a right to collect the debt. In addition, defendants can demand that the collector suing them substantiate the full amount of the debt, including any additional fees.

In some cases, the lawsuit may be one of a number of outstanding and insurmountable debts. People may wish to consider personal bankruptcy as an option for debt relief. An attorney can provide advice and guidance on how Chapter 13 bankruptcy could provide a path to a new financial future.


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