If you've been served with a debt collection lawsuit in Texas, it's important to take action quickly. Failing to respond to the lawsuit could result in a default judgment, which could lead to the debt collector taking steps like garnishing your wages or seizing your assets.
Here's a step-by-step guide on how to answer a debt collection lawsuit in Texas:
1. Understand the Lawsuit
Read the Complaint Carefully
The complaint will outline the debt collector's claim against you, including:
- The amount of the debt: This is the amount the debt collector claims you owe.
- The basis of the debt: This is the reason the debt collector claims you owe the money (e.g., credit card debt, medical bills, etc.).
- The date the debt was incurred: This is the date the debt was originally incurred.
- The date the debt became delinquent: This is the date the debt became past due.
Check the Deadline for Responding
The lawsuit will also include a deadline for you to file a response. This deadline is usually 20 days after you are served with the lawsuit.
Consider Seeking Legal Advice
It's highly recommended to consult with a lawyer to discuss your options and understand the legal process. A lawyer can help you navigate the complexities of the law and advise you on the best way to respond to the lawsuit.
2. File an Answer
Choose One of the Following Options:
- General Denial: This is a simple denial of all the allegations in the complaint.
- Specific Denial: This is a more detailed denial, where you address each allegation in the complaint and state whether you agree or disagree with it.
- Affirmative Defenses: These are reasons why the debt collector shouldn't be able to collect the debt, even if you owe it. Examples include the statute of limitations, fraud, or a lack of proper documentation.
Include Relevant Information
Your answer should include information about:
- Your personal information: Your name, address, phone number, and email address.
- Your understanding of the lawsuit: Your understanding of the allegations and your response to them.
- Any affirmative defenses you have: This is where you can provide reasons why you believe the debt collector shouldn't be able to collect the debt.
- Your request for relief: This is where you can ask the court to dismiss the lawsuit, reduce the amount of the debt, or order other relief.
File Your Answer with the Court
Once you've prepared your answer, you must file it with the court by the deadline. You can typically file your answer electronically or in person at the courthouse.
3. Prepare for Court
Discover the Debt Collector's Evidence
Once you file your answer, you may be able to request documents and information from the debt collector to help you defend yourself. This is known as "discovery".
Be Ready for Trial
If the case does not settle, you will need to be prepared for trial. This means you will need to gather your own evidence, such as proof of payment or documentation of the debt.
4. Consider Your Options
Settle the Debt
You may be able to settle the debt with the debt collector for a lower amount. It's important to note that if you settle, you agree to pay the agreed-upon amount, and you may not be able to contest the debt in the future.
Dispute the Debt
If you believe you don't owe the debt, or you owe less than what the debt collector claims, you can dispute the debt. This can involve providing evidence to support your claim.
File for Bankruptcy
If you are unable to pay your debts, you may be able to file for bankruptcy. This can stop debt collection lawsuits and allow you to discharge your debts.
Conclusion
Answering a debt collection lawsuit in Texas can be a complex process. It's important to take action quickly and seek legal advice to protect your rights. By understanding the steps involved and taking the necessary steps, you can increase your chances of a favorable outcome.