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Debt Defense FAQ's

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We know you have a lot of questions about different types of debt, your debt resolution options, and your rights as a consumer. Explore the videos in our video library to find answers to our clients’ most common questions. For more personalized advice, reach out to us to schedule your free consultation.

Do not throw the lawsuit away — many people get so frustrated they trash it, and that is a costly mistake. Pay close attention to when your answer is due: in Texas it is typically the Monday following the 10th or 20th day after service of process. Contact a consumer defense attorney immediately, because even if you file an answer yourself, procedural mistakes can still result in a default or loss.
If you ignore the lawsuit, the creditor will wait a set period and then take a default judgment against you. Most debt collection lawsuits include requests for admissions — by failing to respond, you are also failing to answer those admissions, which can be deemed against you as a matter of law, eliminating any evidence you could present at trial. Years later you may discover your bank account is frozen or you cannot sell your home.
You can call the court, but courts are not authorized to give legal advice. A debt lawsuit does not end with the answer — creditors routinely include requests for admissions, interrogatories, and other instruments that require skilled responses. Mistakes answering these tools can forfeit valuable defenses, and handling it yourself will almost always cost you more in the end.
Do not panic and do not feel embarrassed — this situation affects many people. Keep all paperwork from the lawsuit and any related account documents. Find out exactly when your answer is due. Contact a consumer defense attorney who knows the specific creditor, the relevant court, and the local judges, because even a properly filed answer can still leave you exposed without professional representation.
Yes. In justice court, deadlines are much shorter, there is no court reporter, there is no official record, and judges may be less familiar with the rules of evidence. A good consumer lawyer will know the differences, be acquainted with the judge, and know how to defend you effectively in any court.
In Texas state court, what some people call a complaint is technically called a petition. You do not have to sign for it when served — the process server can leave it at the door or with someone over a certain age. Courts do not screen petitions for legal adequacy, so it takes a lawyer to file a special exception and attack a petition that does not properly state a claim for relief.
Do not ignore it. You need an experienced consumer defense attorney as soon as possible — someone who knows the legal system, knows the specific creditor or debt buyer, has a relationship with opposing counsel, and knows the court you are in. Acting quickly gives you the best options for having the judgment reduced, set aside, or challenged.
A default judgment occurs when you fail to respond to a lawsuit and the creditor takes a judgment against you by default. There is also a post-answer default judgment: even if you filed an answer, if you are unaware of the trial date and do not appear, the judge can enter judgment against you. Appearing at trial without a lawyer is as inadvisable as performing surgery on yourself.
It depends on timing. Within 30 days of the judgment, you can file a motion for new trial. After that window closes, there is still a vehicle called an equitable bill of review, which can be filed in Texas within four years of the judgment date. A consumer defense lawyer can also review whether the creditor followed all proper evidentiary rules — if they did not, that becomes leverage to reduce or eliminate the debt.
An equitable bill of review is a lawsuit in which the consumer becomes the plaintiff and sues the judgment creditor in an attempt to set aside the judgment. It can be used defensively to get a judgment reduced, or offensively — if the judgment was taken improperly — to eliminate the debt entirely. Experienced consumer defense attorneys evaluate equitable bills of review before approaching a creditor to negotiate, because a shaky judgment makes settlement much more favorable.
A judgment lien is a public record attached to your property after a court judgment against you. It can appear in a title search and block the sale or refinancing of your home or other non-exempt property. Even if a creditor cannot force the sale of your Texas homestead, the lien can remain and cause serious problems when you want to sell or refinance.
No. Texas law prohibits wage garnishment by creditors for consumer debts, even after a judgment is entered. A creditor cannot go to your employer and demand a percentage of your paycheck. This is one of the strongest debtor protections in Texas.
Yes — and this is a critical distinction. Once your paycheck is deposited into your bank account, it loses its legal characterization as a wage and becomes a general bank deposit. At that point, a creditor holding a judgment can garnish the funds in your account. This catches many people off guard who believe their money is permanently protected.
No. Consumer debts are civil matters, not criminal ones. Threatening arrest, debtor's prison, or criminal prosecution in connection with a consumer debt is a serious violation of the law. If a collector makes such threats, document it and contact a consumer defense attorney, as it may give rise to a claim against the collector.
Texas consumers are protected by both federal and state law. The FDCPA applies to debt collectors, but under federal law original creditors like banks are not technically defined as debt collectors. However, Texas state law — the Texas Debt Collection Act — defines original creditors as debt collectors too. This means Texas consumers have stronger protections than the federal law alone provides.
The Texas DTPA is bootstrapped together with the Texas Consumer Protection Act, providing significant remedies. If a debt collector knowingly and intentionally violates the act, a consumer can recover treble damages — three times their actual damages — plus attorneys fees. In Texas, an original creditor can also be considered a debt collector under this law.
You can send a cease and desist letter yourself, but that cuts off all communication. A better approach is to retain a consumer defense lawyer who can send the letter on your behalf. That way the creditor must deal with your attorney, and if they use inappropriate language or call at improper times, your lawyer will document it and enforce your rights.
Yes. An experienced attorney can determine whether you are actually getting a fair deal — they have seen hundreds of similar accounts and know what each creditor typically accepts. They can verify that the person you are negotiating with actually has authority to settle, and will get the settlement in writing with proper release language so no one can come back later to collect the same debt again.
The best deals tend to come either at a court-ordered mediation or just before trial. The most favorable settlements typically occur late in the process, not at the beginning. The case should always settle when the client is ready, but patience often produces better results.
Principal reductions are quite common in consumer protection defense. The amount reduced has a direct relationship to the experience and expertise of the lawyer — a more experienced attorney with established relationships with creditors and their counsel will typically achieve a better reduction than someone new to the field.
Interest can be reduced, and sometimes waived entirely. The outcome depends heavily on the skill and reputation of the attorney handling the negotiation. An experienced debt defense lawyer with a track record against specific creditors will be in a much stronger position to get interest eliminated.
Extending the term is not the primary goal. Simply extending how long you pay does not get you out of the debt — it often leaves you in the same financial position for even longer. The real goal is to reduce the principal, eliminate interest where possible, and get you back to financial health as quickly as possible.
The dollar amount being sought generally stays the same since it is still the same debt — just collected by a new party. However, debt buyers typically purchase debt portfolios for pennies on the dollar, which creates more room for negotiation and settlement. Debt buyers also often lack the complete documentation the original creditor had, which puts you in a stronger position to win in court or negotiate a settlement.
An answer is the formal document you file with the court responding to the lawsuit. At minimum, it contains a general denial — stating that you deny the allegations and demand that the creditor prove their case. However, a consumer defense attorney goes much further, including affirmative defenses and other matters that must be raised in the answer or they are waived at trial.
Affirmative defenses are specific legal defenses that must be explicitly stated in your answer — they go beyond a simple denial. Examples include statutes of limitations, failure to provide proper notice, and improper procedure. An experienced attorney knows which affirmative defenses apply to your situation and how to plead them properly so they are not lost before trial.
A statute of limitations is the period within which a lawsuit must be filed. If a creditor waits too long, their claim is time-barred. Most people do not know how to properly plead this defense or present it to a judge even if they know it applies. A consumer defense attorney can determine whether the lawsuit was timely filed and, if not, have it dismissed.
Requests for admissions are true or false questions the creditor sends as part of discovery, designed to get you to admit facts that prove their case. If you do not respond within the required timeframe, they are automatically deemed admitted against you as a matter of law — meaning you can be prevented from presenting evidence at trial at all. A consumer defense attorney knows how to respond properly and how to object to improper admissions.
Deemed admissions are requests for admissions that were not answered on time, which the law treats as if you admitted everything the creditor asked. This can effectively destroy your defense before trial. An experienced attorney can file a motion to undeem them, but this requires a hearing. It is far better to respond properly from the beginning.
The most common mistake is not answering on time, which results in automatic deemed admissions. The second is not knowing that many requests are legally objectionable — for example, a request that asks you to admit a conclusion of law does not need to be answered. Many unrepresented people admit their entire case away when they did not have to.
Interrogatories are written questions from the creditor that must be answered under oath, accompanied by an affidavit. They are designed to gather facts to support the creditors case. Answers to interrogatories can be read into evidence at trial, so having an attorney craft responses that protect your defense is critically important.
Requests for production ask you to provide specific documents to the creditor as part of discovery. If handled improperly, you can end up giving the other side far more than legally required, effectively handing them your entire case. A consumer defense attorney knows which requests to object to, what must actually be produced, and how to respond without surrendering your defenses.
A motion for summary judgment is the creditors attempt to win the case without going to trial, by arguing there are no genuine disputed facts. This is often the most technically demanding phase of the case, requiring a response with detailed legal objections filed within seven days of the hearing. Even people who successfully navigate the rest of the case on their own often lose at this stage. If you receive a summary judgment motion, get an attorney immediately.
A sworn account is a Texas procedural mechanism used to prove certain types of debts, typically those involving a sale of goods with a systematic account record. Credit card cases and many other consumer debt cases cannot be proven using a sworn account claim. Whether this theory applies requires a technically experienced consumer defense attorney.
An affidavit is a written sworn statement. In a debt case, affidavits arise in several contexts: verifying the consumers answer, supporting motions for summary judgment, and most importantly as a custodian of records affidavit by which the creditor tries to admit billing records into evidence without a live witness. Debt buyers particularly often fail to authenticate their records properly in these affidavits, which an experienced attorney can challenge.
A custodian of records is the person the creditor designates to verify and authenticate their business records — usually done by sworn affidavit rather than live testimony. If the affidavit is properly challenged, the records may be stricken, which can prevent the creditor from proving their case. Without an attorney, most consumers cannot effectively challenge a custodian of records affidavit.
They must prove they have legal standing to sue on this specific account, there is a valid contract or agreement between you and them, the interest rate and fee amounts they claim are authorized by that agreement, and that you actually owe the amount they are claiming. An experienced consumer defense attorney knows how to challenge each of these elements.

Get Answers To Your Questions

We know you have a lot of questions about different types of debt, your debt resolution options, and your rights as a consumer. Explore the videos in our video library to find answers to our clients’ most common questions. For more personalized advice, reach out to us to schedule your free consultation.

For unsecured debts like credit cards, a judgment creditor cannot force the sale of your Texas homestead. However, a judgment lien can attach to the property, which can create problems when you try to sell or refinance. Your homestead is protected, but the lien will not go away on its own.
Yes, under the terms of most credit card agreements. Rates often include a variable component tied to the prime rate, and card agreements typically give the company broad discretion to raise your rate if they feel insecure for almost any reason, even if you have paid on time. The governing state law is often not Texas, since most credit card agreements contain a choice-of-law provision selecting another state.
The contract generally allows changes with an opt-out window, but a common problem is timing — you may mail a check days before the due date, but the company does not post it until after the deadline, then charges a late fee and possibly raises your interest rate. This is a well-documented tactic that a consumer defense attorney can help challenge.
First, call the credit card company yourself and dispute the late fee. If they refuse, contact a consumer defense attorney. This is a known tactic — they use the late payment to justify a fee and to trigger a rate increase. If one card raises your rate, other card companies may see it and raise their rates too, creating a cascading problem that is very difficult to recover from without legal help.
Balance transfer offers are one of the trickiest credit card tactics. A company offers a low promotional rate, but after three to six months, the rate reverts to a high rate. A consumer defense attorney can evaluate whether you were given proper notice of the terms and conditions, and whether the disclosures about what happens after the promotional period were legally adequate.
That depends entirely on your specific credit card agreement. Request a written copy of your operative agreement from the company and document the request. If the agreement language is hard to understand — which it usually is — a consumer defense attorney can review it and give you an opinion on what fees are and are not permitted.
Some agreements allow inactivity fees, annual membership fees, or similar charges. You need to read your specific card agreement. A consumer defense attorney can help you understand whether any fees being charged are permitted under your actual agreement and whether improper fees give rise to any claim against the company.
Contact a consumer defense attorney before you are sued. The attorney can approach your creditors directly and try to work out a payment arrangement or restructure your obligations before litigation begins. Getting help early — before a lawsuit or judgment — gives you far more options and typically results in a better outcome.
Texas requires written notice before repossession. The specific requirements can depend on your loan agreement, but generally the notice does not need to be sent by certified mail — regular mail can suffice. Keep close track of your mail so you do not miss it.
Seek a consumer defense attorney immediately. The attorney can determine whether the repossession was done properly, attempt to restructure the loan so you can keep the vehicle, and begin building your defense for the deficiency lawsuit that typically follows a repossession. Acting quickly gives you the most options.
The repossession company is simply an agent of the lender. After repossession, the lender typically sells the vehicle. To get the car back, you generally must pay the full remaining balance on the loan. An attorney can review whether the repossession was lawful and whether there are grounds to challenge the amount claimed or restructure the debt.
They can sue you for the difference — this is called a deficiency judgment. Texas law requires the sale to be conducted in a commercially reasonable manner. A consumer defense attorney can challenge whether the sale was commercially reasonable — for example, if the car sold for far less than its blue book value — and potentially eliminate or significantly reduce the deficiency.
A deficiency judgment occurs when a creditor repossesses collateral such as a car or boat, sells it, and the sale proceeds are less than the remaining loan balance. The creditor then sues you for the difference. Deficiency judgments are particularly common with vehicles and boats because of rapid depreciation.
The UCC governs the mechanics and requirements of vehicle repossessions in Texas. It sets rules for notice requirements before the repossession and requires that the subsequent sale be conducted in a commercially reasonable manner. Consumer defense attorneys use the UCC to challenge deficiency judgments when the collateral was sold for less than it was worth or when proper procedures were not followed.
First, contact a consumer defense attorney to try to renegotiate your payment terms with the lender. If that fails, return the vehicle — do not keep holding collateral you are not paying for. Continuing to hold a vehicle without making payments can escalate the situation and may result in the creditor seeking a writ of sequestration to force return of the car through court action.
Yes. An experienced attorney will review how the loan was originated, check for Truth in Lending violations, verify whether the paperwork was proper, and — if the car was repossessed — examine whether the repossession and subsequent sale were done correctly. These legal angles give the attorney leverage to negotiate a lower payoff.
Consult a consumer defense attorney to try to work out a refinancing arrangement with the lender. If the lender will not cooperate, return the boat rather than holding onto it without paying — keeping collateral you cannot pay for can turn a civil matter into a more serious situation, and the creditor may seek a writ of sequestration to force return of the boat through court.
Contact a consumer defense attorney. They can assess whether the repossession was proper, attempt to restructure the loan, explore settlement options, or begin building your defense for the deficiency lawsuit that is likely to follow the sale of the boat.
Yes. A lawyer will apply your specific loan facts to the law, identify any procedural problems with how the loan was handled or how the repossession occurred, and use those findings as leverage when approaching the lender. The outcome depends on the specific facts of your situation.
Medical debt is common and hospitals are generally more willing to work with an experienced attorney who has an established relationship with them. A lawyer can set up a payment plan or negotiate a reduction. If you truly cannot afford to pay, the attorney can defend you in the lawsuit that would follow. Keeping communication open with the hospital — ideally through a lawyer — is usually enough to avoid litigation.
A lawyer who works regularly with medical creditors knows how to frame your financial situation in the most favorable way and who to contact at the hospital or collection agency. They may have personal relationships with the relevant attorneys and can negotiate more effectively than you could on your own.
HIPAA is a federal privacy law that controls access to your medical records. In a debt collection lawsuit for medical bills, the creditor must prove not only that the bill exists, but that the charges were reasonable and necessary. If the creditor — especially a debt buyer — cannot gain proper access to those records under HIPAA, they may be unable to prove their case. An experienced consumer defense attorney can use HIPAA strategically as a shield.
A consumer defense attorney is the best option. Unlike debt consolidation companies — which often operate out of state, are not lawyers, hold your money in accounts you cannot access, and frequently go out of business — a licensed Texas attorney is regulated by the State Bar, can be visited in person, does not hold your money for you, and can actually represent you in court.
Most debt consolidation companies are not local and do not have lawyers involved. They collect monthly payments from you and hold the money — sometimes for years — in an attempt to accumulate enough to negotiate. These companies frequently disappear with the money, and because they are not lawyers, they cannot represent you in court or properly evaluate the legal risk of your case.
A consumer defense attorney can do everything a debt relief agency does, but the reverse is not true. An attorney can defend you in court, evaluate every aspect of your case under the law, account for the specific court and judge involved, and properly value any settlement. Debt relief agencies cannot represent you in court and are far less equipped to assess the real legal risk of your situation.
You cannot afford not to have one. Creditors will continue to add 30% interest and pursue the full balance, making your debt grow until it becomes unmanageable. A good consumer defense attorney works out payment plans designed for clients in exactly this situation, and because they handle a high volume of similar cases efficiently, their rates are often lower than a general practice attorney.
Visit the attorneys office — most offer free consultations. Make sure they will handle the case personally at every stage: from initial settlement negotiations through trial, and even through any appeal if needed. You want someone who will not just refer you elsewhere, but who will be with you throughout the entire process.
Bring any lawsuit documents you have received, account statements from the creditor, the credit card or loan agreement, any promotional or marketing materials you received about the account, and all letters from the creditor, any collection agency, or their attorneys. The attorney may also send you a form to complete in advance listing specifically what to gather.
Yes. A good Texas consumer defense firm practices statewide. The creditors and their attorneys know established firms throughout the state, and that recognition is itself a form of leverage. Travel time for court appearances is typically not billed to the client.
The timeline varies based on the complexity of the case and the attorneys experience. Sometimes it makes sense to move quickly — if you need to close on a home, for example. Other times, extending the case allows you time to accumulate funds for a lump-sum settlement. A good attorney will tailor the pacing to what is actually in your best interest.
An experienced consumer defense attorney who handles a high volume of these cases can charge more affordable rates than a general practice attorney, because they have efficient systems in place and are not billing exploratory time learning an unfamiliar area. Payment plans are common and are specifically structured for clients who are already in financial difficulty.
Yes. A court judgment in your favor establishes that the debt was not owed, which can positively affect your credit report. In a settlement, an experienced attorney can sometimes negotiate a trade line deletion — meaning the creditor removes the negative entry from your credit report entirely. Even a negotiated payoff on a debt in default generally improves your score compared to leaving it unresolved.
If you are solely responsible for the debt under the divorce decree, try to show good faith to creditors. If you genuinely cannot maintain payments, contact a debt defense attorney to develop a plan — either to restructure the debt or negotiate a reduction in your monthly obligation. Acting proactively before a lawsuit is filed gives you far more options.
There are several options beyond bankruptcy. The best first step is to consult a consumer defense attorney who can evaluate your entire debt situation and design the most cost-effective plan — which might include negotiating settlements, defending lawsuits, or restructuring debt, all without filing for bankruptcy.
Yes. Creditors routinely file suits regardless of the amount owed. In practice, accounts are handed to collection law firms in batches, and those firms often sue across the board without carefully evaluating each individual balance. Do not assume a small debt means they will not come after you.
After a judgment, a lawyer has several tools: filing a motion for new trial within 30 days, filing an equitable bill of review within four years, checking whether the judgment was properly obtained, and using any procedural defects as leverage to negotiate a reduction. The presence of an attorney also signals to the creditor that pursuing further collection will be difficult and expensive, often resulting in a settlement at a fraction of the judgment amount.

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