What Happens When You’re Sued for a Debt?
Being sued for a debt in Texas can feel overwhelming, especially when the plaintiff is a large debt collector or law firm. But don’t panic — you have rights, and more importantly, you may have valid legal defenses that can stop the lawsuit in its tracks or significantly reduce what you owe.
In this article, we explain the most common and effective defenses to a debt collection lawsuit in Texas, and how an experienced Texas debt defense lawyer can help.
When a creditor or third-party debt collector (like Midland Credit, Portfolio Recovery, or LVNV Funding) files a lawsuit, you will be served with a citation and petition. You typically have 14 days to file a written answer with the court in justice court, or 20 days + the following Monday in county or district court.
Failing to respond results in a default judgment, which allows the creditor to seek bank levies, liens, or wage garnishment (in some limited cases).
But filing a proper answer is your first opportunity to raise legal defenses.
Common Defenses to Debt Lawsuits in Texas
1. Statute of Limitations
Texas law gives creditors four years to sue for most debts (including credit cards). This period starts from the date of the last payment or account activity.
If the lawsuit is filed after four years, it’s time-barred, and you can file a motion to dismiss based on the statute of limitations.
2. Lack of Standing
Debt buyers (like Cavalry SPV or Velocity Investments) must prove they have the legal right to collect the debt. This requires:
- A valid chain of assignment from the original creditor
- Accurate and complete records
If they can’t prove they own the debt, they lack standing to sue, and the case can be dismissed.
3. Improper Service of Process
If you weren’t properly served with the lawsuit, the court may not have jurisdiction over you. That means any judgment entered against you could be voidable.
4. Mistaken Identity or Wrong Debtor
If the debt isn’t yours or you were added to the lawsuit by mistake, that is a full defense. This can happen with:
- Mixed credit files
- Identity theft
- Old account mix-ups
Always demand debt validation and carefully examine the account details.
5. Account Already Paid or Settled
If you paid the debt — or settled it with the original creditor — the collector may be suing you in error. You’ll need documentation (e.g., payment confirmations or settlement letters) to prove this defense.
6. Amount Sued For Is Incorrect
Debt collectors often sue for inflated amounts that include:
- Unauthorized fees
- Excessive interest
- Duplicate charges
Challenging the accuracy of the amount claimed is a legitimate defense under both Texas law and the Fair Debt Collection Practices Act (FDCPA).
7. Debt Discharged in Bankruptcy
If the debt was discharged in a Chapter 7 or Chapter 13 bankruptcy, it is no longer collectible, and any lawsuit filed after that may violate bankruptcy protections.
8. FDCPA or Texas Debt Collection Act Violations
If the collector violated your rights by:
- Harassing you
- Calling at unreasonable hours
- Threatening arrest or lawsuits they didn’t intend to file
…then you may be entitled to damages, and the lawsuit may be subject to dismissal or countersuit.
How a Texas Debt Defense Lawyer Can Help
At Texas Debt Law, we defend consumers across the state from debt lawsuits, including those filed by:
- Debt buyers
- Credit card companies
- Personal loan lenders
- Auto finance companies
- Payday loan collectors
We will:
- Review your case for all possible defenses
- File a timely and strategic response
- Challenge improper evidence
- Negotiate dismissals, settlements, or reduced judgments
- Appear in court on your behalf (often without you needing to attend)
Don’t Face a Lawsuit Alone
If you’ve been sued for a debt in Texas, time is critical. You may have strong legal defenses — but if you don’t act fast, you could lose by default.
Contact Texas Debt Law today for a free case evaluation. We’ll help you understand your options and fight back with confidence.
📞 Call now or request a consultation online — protect your future and take back control.
