Here’s the reality: Debt collectors sue thousands of Texans every year. In 2021 alone, nearly 374,000 debt collection cases were filed in Texas courts, and recent data suggests filings surged even higher in 2023 and 2024. Many were filed by debt buyers who purchased old debts for pennies on the dollar and are now demanding full payment plus interest, fees, and court costs.
But here’s what the lawsuit papers don’t tell you: filing a lawsuit and winning a lawsuit are two very different things.
Since 2018, Guardian Litigation Group has focused on defending Texans facing debt collection lawsuits. Many cases weaken once a defendant files an answer requiring the collector to prove ownership of the debt, the accuracy of the balance, and proper documentation. When plaintiffs cannot meet this burden, cases may be dismissed, reduced, or resolved through negotiation, depending on the facts of the case.
This guide explains exactly what happens when a debt collector sues you in Texas, what evidence debt collectors must prove, how Texas procedural rules work in your favor, and what Guardian Litigation does to defend clients against collection lawsuits and creditor harassment.
Understanding Debt Collection Lawsuits in Texas
Debt collectors have the legal right to file a lawsuit against you in Texas if you owe a debt and have not paid it. However, this doesn’t mean every debt collector will sue, nor does it mean they can do so without following proper procedures. Understanding when and how collectors can sue is crucial to protecting yourself.
The decision to sue typically depends on several factors, including the amount of debt, the age of the debt, and whether the collector believes they can successfully collect.
Most debt collectors would prefer to settle outside of court because lawsuits are expensive and time-consuming. However, if they believe legal action is their best option for recovery, they will pursue it.
The Statute of Limitations: Why Old Debts Become Legal Landmines
Texas law gives debt collectors four years to sue you for most common debts—credit cards, personal loans, medical bills. The clock starts from your last payment or, critically, your last acknowledgment that you owe the debt.
After four years pass, the debt becomes “time-barred.” You are still indebted, but collectors cannot sue you.
But here’s where most people get trapped:
Old debts can still create legal risk if handled incorrectly. In Texas and many other states, certain actions—such as acknowledging a debt or making a payment—may affect how the statute of limitations is calculated.
That’s why responding to a collector without understanding your rights can have unintended consequences. If you’re contacted about an old debt, it’s important to speak with a qualified attorney before discussing the account or agreeing to anything, so you can understand how the law applies to your specific situation.
This is why the first question you should ask when contacted about an old debt is: “When was my last payment?” Not to the collector—to an attorney who can calculate whether you’re protected by the statute before you say anything that could waive that protection.
What Happens When a Debt Collector Sues You
If a debt collector sues you in Texas, they must file a petition with the court and serve you with a citation. Service usually happens one of three ways: a process server hands you papers directly, someone over 18 at your home accepts them, or in some cases, they’re posted on your door and mailed according to Texas Rules of Civil Procedure.
The citation will state the amount they claim you owe, identify the creditor, and include a critical piece of information most people miss: your deadline to respond.
Texas Answer Deadlines (Know Which One Applies)
Texas answer deadlines depend on the type of court and how you were served, and they are set by the Texas Rules of Civil Procedure.
- County and District Courts (most debt lawsuits):
An answer is generally due by 10 a.m. on the first Monday after 20 days from the date of service. - Justice Courts (JP courts):
These cases follow a different rule. Defendants typically have 14 days from service to file an answer, and the deadline is not tied to a Monday calculation. - Out-of-state service or certain alternative service methods:
Some cases allow longer response periods, often 30 days, depending on how service was completed and which court has jurisdiction.
Because missing a deadline can limit your options, it’s important to identify which court your case is in and how you were served as early as possible. If you’re unsure which deadline applies, a Texas attorney can quickly review the paperwork and confirm the correct timeline for your situation.
Don’t wait until the last day. Court filing systems can experience technical issues, and the deadline is absolute. Contact Guardian Litigation now for a free case review. We’ll tell you exactly what your deadline is, what defenses you have, and how we can help you fight back.
What Happens If You Miss the Deadline
If no answer is filed, the collector may ask the court for a default judgment. A judge can rule based on the paperwork alone, without a trial or evidence being challenged. Once a judgment is entered, the creditor may gain additional collection options, which can include:
- Bank account levies, subject to exemptions
- Judgment liens against certain property you own
- Judgment renewal under Texas law if the debt remains unpaid
Important Limits Under Texas Law
Importantly, Texas law generally does not allow wage garnishment for consumer debts, including credit card balances, medical bills, and personal loans. Wage garnishment is typically limited to specific obligations such as child support, spousal maintenance, certain federal student loans, and federal tax debts.
Because judgment consequences vary based on the type of debt and the debtor’s assets, speaking with a Texas attorney can help clarify what a judgment could realistically mean in your situation.
This is why roughly 70% of debt collection cases end in default judgments, according to research by the Pew Charitable Trusts. Not because the collectors proved their case—because the debtor never showed up to fight.
What an Answer Actually Does
Your answer is a legal document that:
- Tells the court you’re contesting the lawsuit (preventing automatic default)
- Forces the collector to prove everything they claim (they must produce evidence, not just assertions)
- Raises your defenses (statute of limitations, lack of standing, improper documentation, payment history disputes)
- Starts the discovery process, where the plaintiff may be required to produce contracts, account statements, and assignment records under the Texas Rules of Civil Procedure.
An answer doesn’t mean you’re claiming you never owed the money. It means you’re requiring them to prove they have the right to collect it, that the amount is accurate, and that they’ve followed all legal procedures—exactly as the Consumer Financial Protection Bureau advises.
In our practice, we’ve seen cases where collectors drop the lawsuit entirely after an answer is filed, because they realize they can’t actually prove what they claimed in their petition.
What Evidence Debt Collectors Must Prove in Texas Court
One of the most important things to understand is that debt collectors cannot simply claim you owe money without first proving it.
Under Texas Rules of Civil Procedure, collectors must present specific evidence to win their case. This is where many collection lawsuits fall apart, and where you can mount a strong defense.
First, collectors must show a valid contract or agreement between you and the original creditor. This means producing a copy of the original credit card agreement, loan contract, or promissory note that proves you agreed to the debt.
Without this foundational document, collectors cannot establish that you’re legally obligated to pay.
Proving Ownership: The Chain of Assignment
Most debt collection lawsuits today are filed by debt buyers—companies that purchase old debts for pennies on the dollar. These companies must prove they actually own your debt and have the legal right to collect it. Texas procedural rules require the petition to include the date of assignment, names of all prior holders, and identification of the original creditor.
A debt buyer must produce documents showing the complete chain of title from the original creditor to themselves. This chain of assignment requirement is one of the most common reasons debt collection cases are dismissed. If there’s a gap in the chain or missing documentation, the collector may lack legal standing to sue you at all.
Who We Are (And Why It Matters That We’re Attorneys)
Guardian Litigation Group has defended Texans and clients across 48 states against debt collectors and creditors. Our firm was founded by attorneys John T. Greenway and Jonathan Yong with a specific focus: representing people when debt becomes a legal fight.
We’re not a debt relief company. We’re not a call center that negotiates on your behalf. We are a law firm with dozens of attorneys who file court documents, raise legal defenses, and when collectors violate the law, sue them back.Comprehensive Debt Settlement Services
Guardian Litigation focuses on helping Texans resolve debt disputes through strategic legal advocacy. Our attorneys work directly with creditors and collection agencies to pursue resolutions that align with each client’s financial circumstances and legal position.
In many cases, debt resolution efforts focus on reaching settlements for less than the amount originally claimed, particularly where legal defenses, documentation issues, or procedural weaknesses affect the collector’s leverage. Outcomes depend on the facts of each case and the creditor involved.
Our approach emphasizes practical solutions, informed negotiation, and legal protections designed to help clients resolve outstanding debts while minimizing long-term financial impact.
Why Choose Guardian Litigation Group
With dozens of attorneys focused primarily on debt resolution and consumer protection, Guardian Litigation Group offers deep expertise. Our specialization allows us to spot weaknesses in collection cases and negotiate more effectively than general practice firms.
Nationally endorsed by The Ramsey Show, we are committed to consumer protection and financial empowerment. While Dave Ramsey teaches money management, we protect your rights when debt becomes legal action, helping families regain control and secure their financial future.
Frequently Asked Questions
What federal laws protect me from debt collectors?
The Fair Debt Collection Practices Act (FDCPA) limits when and how debt collectors may contact you and prohibits harassment, false statements, and unfair practices. The law is enforced by the Federal Trade Commission and the Consumer Financial Protection Bureau.
Can a debt collector contact me after I hire an attorney?
The Fair Debt Collection Practices Act (FDCPA) generally limits direct contact by debt collectors once they know a consumer is represented by an attorney regarding the debt, with certain exceptions depending on the circumstances.
What happens if a debt collector violates the FDCPA?
The Fair Debt Collection Practices Act provides remedies when its provisions are violated, which may include statutory damages, actual damages, and attorney’s fees in appropriate cases. The availability of these remedies depends on the specific facts and sections of the law involved.
Can I be sued for a debt that is past the statute of limitations?
A debt collector may still file suit, but courts can dismiss cases involving time-barred debt if the statute of limitations has expired. The deadline varies by state and debt type, and certain actions may restart the limitation period.
Can a debt collector garnish my wages without going to court?
In most cases, no. A collector generally must obtain a court judgment before garnishing wages, and federal law limits how much can be taken under the Consumer Credit Protection Act. Additional protections may apply under state law.
What debts are not covered by the FDCPA?
The FDCPA typically applies to third-party debt collectors, not original creditors collecting their own debts. However, as explained by the FTC and CFPB, other federal or state laws may still regulate their conduct.
Can I dispute a debt after a lawsuit has been filed?
Yes. Consumers may dispute the debt by filing an answer and requiring the collector to prove ownership, balance accuracy, and legal standing, as outlined by the CFPB’s guidance on debt collection lawsuits.
Are debt collectors allowed to threaten arrest or jail?
The FDCPA generally prohibits debt collectors from using false, deceptive, or misleading statements, which can include threats of arrest, jail, or criminal prosecution for consumer debt. If you receive this type of threat, speaking with an attorney can help you understand your rights and whether the conduct violates federal law.