Credit card companies are increasingly suing debtors in justice courts as well as county and district courts in Texas.
If you have defaulted on a credit card payment or another debt, either due to negligence or inability to pay, creditors may choose to bring a lawsuit against you in justice court, county court or district court in Texas. The large creditors may have thousands of such lawsuits pending at the same time in various courts throughout Texas against debtors.
Unsecured v. Secured Debt
Debts can be generally classified as “secured” or “unsecured”. Secured debt is backed by collateral such as a home, or a car. If you default on a secured loan, the lender will move to take possession of the collateral (often by foreclosing on the home or taking possession of the car).
Most credit card debts are “unsecured” loans. Creditors generally do not have the right to foreclose on a home or other property in such cases. Creditors have to be careful in making such loans to avoid default and often balance the risk of default by charging high interest rates and fees.
Seek Legal Help to Defend Your Case
Creditors would sue debtors generally in the county of the debtor’s residence. It is important that you file an Answer with the Court to avoid a default judgement against you.
Retaining an attorney to defend your case may save you money in the end. Attorneys can often force a better settlement from the creditors. Also, you may have some valid legal defenses to the creditor’s claims, especially with regards to the high interest charges and other fees.
FT Law Firm Represents Debtors in Dallas and Surrounding Counties
FT Law Firm has experience representing debtors in courts in counties such as Collin County, Denton County, Dallas County, Tarrant County and the surrounding counties. If you have been sued by a creditor, please call us for an initial consultation at (214) 449-0007.