When you fall behind on paying your credit card debt, your creditor will attempt to collect the debt, but if they believe that you have no intention of paying it back, they are likely to close the line of credit and file a lawsuit in order to obtain a judgment against you. Being sued by a credit card company in Texas means that you may have received a summons to the court concerning the matter. In order to defend against a Texas credit card lawsuit, there are a few steps that are within your rights as a debtor.
Texas Credit Card Lawsuit Defense
Defend Against the Payment
Once you receive a summons to court, you’ll receive the time and date of the court hearing. This is your ability to ask for proof of the debt (usually the original contract) or to outright contest that you owe the debt. Failing this, the unsecured creditor will receive a judgment for the amount owed, which will strengthen the credit card company’s position in collecting the debt. While you have the ability to defend against a credit card lawsuit yourself, it is recommended that you consult an attorney to ensure your rights are upheld in court.
If the credit card company is missing documents, has incorrect information, or there are mistakes in their paperwork, the court may decide to dismiss the case or reschedule the hearing at a later time so the creditor can correct any mistakes. If the credit card company can’t present the necessary proof of the debt, then the lawsuit will be dismissed. On a very important note, in a civil debt lawsuit case, there are different types of dismissals, so working with an attorney will ensure you get the correct dismissal so that the credit card company can’t file another lawsuit with new information.
File for Texas Bankruptcy Protection
If your credit card company wins a judgment for the amount they can now continue collection attempts and take further legal action to levy your bank account, garnish your wages, or place a lien on your home. If this happens it’s still not too late to use bankruptcy to eliminate credit card debt. Once you file Chapter 7 or Chapter 13 bankruptcy in Texas, you will obtain an automatic stay which will immediately stop a lawsuit or any other type of collection attempt. The Judge from your civil lawsuit with the credit card company will place a hold on your case to find out the outcome of your bankruptcy. If you receive a discharge from your credit card debt, your credit card lawsuit will be dropped and end your legal obligation to pay the debt. While it is possible to also remove liens created by creditors for debt, this is a separate step in the legal process that requires an additional motion to accomplish.
Houston Bankruptcy Attorney
If you have received notice of a lawsuit against it’s important to contact a Houston bankruptcy attorney immediately to discover if you can eliminate the debt with a bankruptcy discharge. Bankruptcy can end your obligation to go to court, as well as, your obligation to pay the credit card debt. Additionally, a Houston bankruptcy lawyer will have the knowledge to advise you on how to proceed if the credit card company objects to your debt discharge.