Debt Defense – Texas Procedure

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    How Consumer Debt Cases Move Through the Texas Court System

    If you’re sued for a credit card, medical bill, personal loan, or private student loan in Texas, the case will follow a set legal process.

    Knowing what happens at each stage and your deadlines can help you defend yourself, negotiate a settlement, or avoid a default judgment.

    1. Texas Court Structure for Debt Cases

    Most consumer debt lawsuits in TX are filed in one of these trial courts:

    • Justice Court (Justice of the Peace Courts)

      • Handles claims up to $20,000 (including interest)

      • Informal; no attorney required (but recommended)

      • No formal discovery unless the judge allows it

      • Appeals go to County Court

    • County Court / County Court at Law

      • Handles claims above JP limits (or appeals from JP)

      • More formal; discovery and motions are common

    • District Court

      • Handles high-value civil cases

      • Formal rules of evidence and procedure apply

    2. How a Debt Lawsuit Starts in Texas

    A. Filing the Petition

    • The creditor (or debt buyer) files an Original Petition with the court.

    • The petition states:

      • The amount owed

      • The legal reason for the debt

      • Any contract or account information

    B. Service of Process

    • You must be served with:

      • The Citation (tells you the deadline to respond)

      • The Petition (outlines the allegations)

    • Service is usually by a constable, sheriff, or private process server.

    3. Time to Respond

    • You have 14–20 days to file a written Answer depending on the court:

      • Justice Court: Must file an answer by the Monday next following 14 days after you were served.

      • County/District Court: Similar deadline — by the Monday after 20 days from service.

    If you don’t respond:

    • The creditor can request a default judgment, which allows immediate collection.

    4. Pretrial Process

    • Justice Court:

      • Often set for a hearing or trial within a few months.

      • Discovery is limited but may be granted.

    • County/District Court:

      • Scheduling orders set deadlines for discovery, motions, and trial.

    5. Discovery (Evidence Exchange)

    • Justice Court: Limited unless judge orders more.

    • County/District Court: Full discovery allowed — interrogatories, requests for production, depositions.

    6. Motions

    Common motions include:

    • Motion to Dismiss — For legal insufficiency or jurisdictional issues.

    • Motion for Summary Judgment — Argues no factual dispute exists, so creditor should win without trial.

    • Motion to Compel — To force the other side to comply with discovery.

    7. Trial

    • Justice Court: Bench trial before a JP judge; informal but you must bring evidence and witnesses.

    • County/District Court: Bench or jury trial; formal Texas Rules of Evidence apply.

    The creditor must prove:

    1. They own the debt (especially important in debt buyer cases)

    2. You agreed to the terms (contract, cardholder agreement, or open account)

    3. The amount owed is accurate

    8. Judgment

    If the creditor wins, the judgment may include:

    • Principal balance

    • Pre- and post-judgment interest

    • Court costs

    • Attorney’s fees (if contract or statute allows)

    Judgments in Texas are valid for 10 years and can be renewed.

    9. Post-Judgment Collections in Texas

    Creditors can:

    • Garnish bank accounts (certain funds exempt: Social Security, VA benefits, retirement funds)

    • Place liens on non-homestead real property

    • Seize non-exempt personal property

    Wage garnishment for consumer debts is generally prohibited in Texas — except for child support, taxes, and federal student loans.

    10. Appeals

    • From Justice Court to County Court: You have 21 days from the judgment to file an appeal; case is heard “de novo” (new trial).

    • From County/District Court, appeals go to the Court of Appeals (strict procedural rules apply).

    11. Defenses and Common Violations

    • Statute of Limitations — Most credit card and written contract debts in TX have a 4-year limit from default or last payment.

    • Lack of Standing — Debt buyer cannot prove it owns your account.

    • Improper Service — Can invalidate a judgment.

    • FCRA / FDCPA Violations — False credit reporting or abusive collection tactics.

    Key Takeaways

    • Texas gives you short deadlines — missing them almost guarantees a loss.

    • Wages are generally safe from garnishment for consumer debts, but bank accounts are not.

    • Debt buyers frequently lack proof — demand proper evidence.

    • Early legal advice can lead to dismissals, settlements, or better payment terms.

    📞 Sued for a debt in Texas?
    We defend consumers statewide in Justice, County, and District Courts and fight to protect exempt property from improper collection. Call 855-978-6564!