Being Sued for Debt in Texas?

Attorney David Shuster | 888-365-0921 | Call Now For Answers

If you’re being sued for debt in Texas, you need to contact an attorney right away. You have a very limited amount of time to respond. With an attorney’s help, you can buy yourself more time. You can also explore ways to reduce the amount of debt you owe or create a payment plan.

David Shuster is a debt relief attorney with Shuster Law, PLLC in the Dallas—Fort Worth area. To learn more about your options what to do if you’re being sued for debt in Texas, contact David Shuster by calling 888-365-0921 or by submitting a contact form on this page.

What are debt collectors allowed and not allowed to do?

There are laws that say when debt collectors can call, as well as how many times they can call. If you have an attorney, then they can’t call you.

Are debt collectors only allowed to contact you during certain times of the day?

They are not allowed to call you after 8 pm. For many debtors, the problem isn’t that the calls are too numerous. There are ways to block the calls, or have them deferred to your attorney. The problem comes when you ignore them for too long and the debtor files a lawsuit against you.

What if you’re being sued for a debt you can’t afford to pay?

If it’s gotten to the point where a lawsuit is filed against you, then it’s probably time to talk to an attorney to discuss your options. Many attorneys have flexible payment arrangements to best assist someone who is in debt. You may be able to discharge the debt via bankruptcy, or you can settle it for a lesser amount.

The worst thing you can do is ignore the lawsuit. A judgment will not go away. It will accumulate interest, and it lasts until after you have passed away if you have not paid it.

How long can a debt collector call you, send you letters, etc. to collect debt?

After four years following the initial incurring of the debt, they cannot sue you for collection of the debt. However, they can still attempt to contact you to get the debt repaid for up to seven years. Attorney Shuster recommends against trying to get the debt settled at that point as the settlement can greatly increase. If they haven’t sued you within those four years, Shuster says you don’t need to do anything with it.

Do you need to pay taxes on settled debt?

It’s fairly rare, but you may get a 1099 form for the amount of debt that was forgiven. Generally this is not an issue during bankruptcy filings. It’s an injustice and a messed up law, Shuster says, but he does not see it happen very often.

What is the process like if you’re sued for debt?

It can seem scary at first if you’re sued for a debt. You may get a notice saying that you’re being sued, or you may be served your paperwork. You’ll either get something in your mailbox from an attorney as an advertisement, or you’ll get a knock at the door from someone delivering papers. It’s easy for them to get the judgment against you, but you can often settle for a lesser amount.

When should you contact an attorney?

Immediately. If you’ve been served with a lawsuit, you must respond within 14-21 days. If you don’t respond, your creditor can get a default judgment without notifying you. Shuster says he can offer free consultations over the phone if someone is dealing with a small amount of debt, like around $3,000. He says he can tell very quickly if someone just needs a simple answer.

Can an attorney help with debt-related deadlines?

Yes. Talk an attorney within those first 14-21 days, and they can help you file a response. This will give you substantially more breathing room, sometimes resulting in a court date nine months later. This gives you time to figure out your options. This may be bankruptcy, or it might just be figuring out a structured payment plan. An attorney can make sure that all the deadlines are met and everything proceeds smoothly.

To learn more about your options what to do if you’re being sued for debt in Texas, contact David Shuster by calling 888-365-0921 or by submitting a contact form on this page.

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