Debt Collection Lawsuits in Texas — What to Do If You're Sued

If a debt collector files a lawsuit against you in Texas, you have 20 days to file an answer §TRCP Rule 99. If you do not respond, the court will enter a Default judgment against you — and the collector can then garnish your wages, levy your bank accounts, and place liens on your property.

• Expired statute of limitations — the SOL for the debt type has passed (4 years for written contracts §Tex. Civ. Prac. & Rem. Code § 16.004(a)(3), 4 years for open accounts §Tex. Civ. Prac. & Rem. Code § 16.004(c))
• Wrong defendant — the debt is not yours or you are a victim of identity theft
• Wrong amount — the balance includes unauthorized fees, incorrect interest, or payments not credited
• Lack of standing — the collector (especially a debt buyer) cannot prove they own the debt or have the right to collect it
• Improper service — you were not properly served with the lawsuit

Once a collector has a judgment, they can:

• Garnish wages — up to 0% for most consumer debts; wages are constitutionally exempt from garnishment except for court-ordered child support, spousal maintenance, student loans, and tax debts% of disposable earnings in Texas §Tex. Civ. Prac. & Rem. Code § 63.004
• Levy bank accounts — seize funds directly from your bank
• Place liens on property — attach a lien to your real estate

Judgments in Texas last 10 years (renewable for successive 10-year periods) and accrue interest at 5% per year or the contract rate, whichever is lower, for consumer debts; prime rate as published by the Federal Reserve on the date of computation for other judgments.