When a debt collector sues you in Texas, ignoring the lawsuit is the worst thing you can do. A default judgment — entered because you never responded — lets the collector garnish your wages, freeze your bank account, and put a lien on your property. Texas Debt Defense fights debt collection lawsuits every day. We know exactly how these cases work, and we know how to win them.
Who Sues Texas Consumers for Old Debts
Most debt collection lawsuits are not filed by the original creditor. By the time you’re served, your account has typically been sold — often for pennies on the dollar — to a debt buyer. The three largest debt buyers filing suit in Texas right now are:
- LVNV Funding LLC — Managed by Resurgent Capital Services. One of the most aggressive filers in Texas courts. Often lacks the documentation required to prove ownership of the debt.
- Midland Credit Management (MCM) / Encore Capital Group — Files thousands of suits per year in Texas. Frequently relies on robo-signed affidavits and incomplete account records.
- Portfolio Recovery Associates (PRA Group) — A publicly traded debt buyer with a large Texas litigation operation. Aggressive collectors, but beatable when documentation is challenged.
- Cavalry SPV / Cavalry Portfolio Services — Purchases old credit card, auto, and medical debt. Chain-of-title documentation is often weak.
- Asset Acceptance / Unifin — Smaller collectors that still file regularly in Harris, Travis, and Dallas county courts.
Each of these companies must prove they own your debt, that the amount is correct, and that the lawsuit is filed within the applicable statute of limitations. Many cannot.
Your Defenses Against a Debt Collection Lawsuit
Debt buyers purchase portfolios of accounts in bulk. Documentation is often missing, incomplete, or inaccurate. Common defenses include:
Statute of Limitations
Texas imposes a 4-year statute of limitations on most credit card and open-account debt (Tex. Civ. Prac. & Rem. Code §16.004). If the collector waits too long to sue, the debt is legally time-barred — regardless of whether you owe it. Many debt buyers purchase old portfolios and file suit after the deadline has passed.
Lack of Standing / Failure to Prove Ownership
A debt buyer must show a clean chain of title from the original creditor to itself. This requires a bill of sale, account statements, and often a custodian affidavit. When documentation gaps exist, we challenge standing — and often win.
Inaccurate Amount
Interest, fees, and charges can be miscalculated. If the debt was discharged in bankruptcy, settled, or previously paid, the amount claimed is wrong. We demand itemized account histories and scrutinize every line.
Wrong Defendant
Identity confusion and similar names cause collectors to sue the wrong person. We expose mistaken identity immediately and move to dismiss.
FDCPA Violations by the Collector
If the collector violated the Fair Debt Collection Practices Act (FDCPA) during collection — threats, false statements, harassment — those violations can be used as counterclaims. You may be owed up to $1,000 in statutory damages plus actual damages and attorney fees.
What Happens If You Ignore a Debt Collection Lawsuit
You typically have 14 days from service to file an answer in a Texas Justice Court, or 20 days + the next Monday in a District or County Court. Miss that deadline and the collector gets a default judgment automatically. With a judgment, they can:
- Garnish up to 25% of your disposable wages (Texas has limited wage garnishment for private creditors, but federal courts can enforce garnishment for certain debts)
- Levy your bank accounts
- Place an abstract of judgment lien on your real property
- Collect for up to 10 years (renewable)
Do not let this happen. Call us the day you are served.
Your FDCPA Rights When Being Sued
The Fair Debt Collection Practices Act (15 U.S.C. §1692 et seq.) applies to third-party collectors — including debt buyers. When you are sued or contacted about a debt, collectors must:
- Send a written validation notice within 5 days of first contact
- Stop collection activity if you dispute the debt in writing within 30 days
- Provide verification of the debt upon written request
- Cease contact if you send a written cease-communication letter (with limited exceptions)
- Never make false, deceptive, or misleading statements about the debt or lawsuit
Violations of the FDCPA entitle you to actual damages, up to $1,000 in statutory damages per lawsuit, and recovery of your attorney fees.
Texas Debt Collection Act (TDCA) Protections
Texas Finance Code Chapter 392 provides additional protections beyond federal law. Texas debt collectors may not:
- Use threats, coercion, or violence to collect debt
- Misrepresent the character, extent, or amount of the debt
- Falsely claim the debt has been turned over to an innocent purchaser for value
- Use fraudulent, deceptive, or misleading representations
- File suit or threaten to file suit in a county where the debtor does not reside or where the contract was not made
- Attempt to collect fees, charges, or expenses not authorized by the original agreement or permitted by law
TDCA violations can result in injunctive relief, actual damages, and attorney fees. In some cases, individual debt collector employees can be held personally liable.
How We Defend Debt Collection Lawsuits
- Free Case Review — We review the petition, account records, and any documentation the collector has. Same day or next-day consultations available.
- File Your Answer — We respond before the deadline to prevent a default judgment. Every relevant defense is raised from day one.
- Discovery — We demand the complete account file: original credit agreement, chain-of-title documentation, payment history, and the collector’s affidavit. Most debt buyers cannot produce everything we ask for.
- Challenge Standing — If the chain of title is broken, we move to dismiss. If the statute of limitations has expired, we move for summary judgment.
- Negotiate or Win — Many cases settle for significantly less than the claimed amount, or are dismissed outright. If the collector won’t deal fairly, we go to trial.
- Counterclaim for Violations — If the collector broke the law during the collection process, we file counterclaims. This often shifts the leverage entirely in your favor.
We Also Sue Debt Collectors Who Break the Law
If a debt buyer or collection agency violated the FDCPA or TDCA, you may have a claim against them — independent of any debt you owe. Texas Debt Defense pursues collection agency lawsuits on a contingency basis in many cases. You pay nothing unless we recover for you.
Recoverable damages include:
- Actual damages (financial loss, emotional distress)
- Statutory damages up to $1,000 under the FDCPA
- Attorney fees and court costs
- Injunctive relief to stop the conduct
Who We Defend Against in Texas
Texas Debt Defense has defended clients against suits filed by:
- LVNV Funding LLC / Resurgent Capital Services
- Midland Credit Management / Encore Capital Group
- Portfolio Recovery Associates
- Cavalry SPV I, LLC
- Asset Acceptance LLC
- Unifin Inc.
- Collect America Ltd.
- Collection attorneys filing on behalf of the above
Serving Texas Consumers Statewide
Our attorneys represent clients in debt collection lawsuits throughout Texas, with offices in Houston, Austin, and Dallas. We practice in Justice Courts, County Courts at Law, and District Courts across the state. Whether you were served in Harris County, Travis County, Bexar County, or anywhere else in Texas, we can help.
- Houston / Harris County — Houston, Sugar Land, The Woodlands, Pasadena, Pearland
- Dallas / Fort Worth — Dallas, Fort Worth, Plano, Arlington, McKinney, Garland
- Austin / Central Texas — Austin, Round Rock, Cedar Park, San Marcos, Waco
- San Antonio / South Texas — San Antonio, New Braunfels, Laredo
About Our Attorneys
Texas Debt Defense is led by Finis Cowan, Board Certified in Civil Trial Law by the Texas Board of Legal Specialization, with an LL.M., CPA credentials, and 30+ years of consumer debt defense experience. AV Preeminent rated 5.0 (Martindale-Hubbell). Our firm focuses exclusively on debt defense — we do not handle criminal, family, or personal injury cases. Debt defense is all we do.
Frequently Asked Questions
Do not ignore it. You have a strict deadline to file a written answer — typically 14 days in Justice Court or 20 days + the next Monday in County or District Court. Call us immediately. We review the petition same day, explain your defenses, and can file your answer before the deadline. Missing the deadline means an automatic default judgment against you.
Not always. Debt buyers purchase portfolios in bulk and frequently lack complete documentation: the original credit agreement, a full payment history, and a clean chain-of-title from the original creditor to themselves. We demand all of this in discovery. When gaps exist, we move to dismiss or for summary judgment. Many cases are won on exactly this basis.
Texas imposes a 4-year statute of limitations on most credit card and open-account debt under Tex. Civ. Prac. & Rem. Code §16.004. The clock starts from the date of your last payment or the date the account was charged off, depending on the type of debt. If the debt is time-barred, the lawsuit must be dismissed — regardless of whether the underlying debt exists.
Texas has some of the strongest wage garnishment protections in the country. Private creditors generally cannot garnish wages for consumer debts under Texas law — but federal courts can enforce garnishment for student loans, back taxes, and child support. If a debt buyer gets a judgment against you, they can levy your bank account. Protecting your accounts requires acting before a judgment is entered, not after.
Yes. Even if you owe the underlying debt, that does not mean the collector is entitled to everything they’re claiming. The amount may be wrong, the statute of limitations may have expired, or procedural defenses may exist. An attorney can often negotiate a substantially reduced settlement — sometimes 25-50 cents on the dollar or less — or identify defenses that eliminate the debt entirely. Representing yourself against professional collection attorneys is a significant disadvantage.
Yes, if the collector violated the FDCPA or Texas Debt Collection Act. Common violations include threatening you with arrest, misrepresenting the amount owed, filing suit after the statute of limitations expired, or using deceptive collection tactics. We assess your FDCPA counterclaim at no charge during your initial case review.
We offer a free initial consultation. Our fee structures vary by case type: flat fees for answer-and-defense representation, and contingency arrangements for FDCPA counterclaims where you owe nothing unless we recover. We discuss all fees upfront before you commit to anything.
Yes. We represent clients in debt collection lawsuits throughout Texas, including Dallas, Fort Worth, Austin, San Antonio, and smaller counties across the state. Most of our consultations are conducted by phone or video, and many matters can be handled without you appearing in court at all.
Get a Free Case Review — Call 832-501-0966
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