Is There A Statute Of Limitations For A Bank Or Creditor Filing A Lawsuit Against Me?

There is a four-year statute of limitations in Texas from the date that the claim accrues. When that claim accrues or when the contract is breached, the clock starts ticking. In some cases, if you pay less than the minimum payment required under the contract, that’s a breach. If that continues, then that may start the clock ticking. If you then don’t make the payment, it also starts the clock on the statute of limitations. If you continue to use the card and make minimum payments, that will keep extending those four years.

I’ve Received A Notice Of Complaint From A Creditor Or A Bank. How Long Do I Have To Respond?

In Texas, it is called an original petition. Suppose an original petition has been served to you. In that case, it is crucial to understand that you have been formally served, meaning that someone physically handed you the original petition and citation, and you have been sued. You have 20 days starting on the next day to file an answer. If that date lands on the weekend, you have until the following Monday to file the response.

The answer is always due on a Monday morning. If a motion for alternate service is filed, you can be served by having the notice left at your door or mailed to you through the clerk’s office using certified mail. Any one of those means of service is valid, and it is essential to note the day it is due.

What Happens If I Don’t Respond To The Petition And Don’t Show Up To The Court? What Actions Can The Judge Impose In A Default Judgment Against Me?

If the plaintiff or the party filing the suit presents proper evidence and makes a proper showing, the judge can set the case for a default hearing. The judge can give them all the relief they are asking for, so the case would be over. You would have a judgment against you for the amount you were being sued for, probably including attorney’s fees and costs of court. Then, unless you file and prevail on a new trial motion, that judgment will stand, and they will try and collect on it.

What Evidence Would Help My Attorney In Preparing A Defense For My Case?

Usually, in a debtor or creditor situation, any documentation you have related to the account will be helpful. Most of the time, in consumer defense situations, we make it very clear to put the burden back on the creditor to prove their case. That’s the general rule with these cases. Suppose we are attempting to claim that there has been a violation of the Fair Debt Collection Practices Act or making a counterclaim. In that case, it’s going to be essential for us to get information related to the number of times you’ve been contacted. These claims are made after they have tried to contact you and collect this debt to prove that they’ve done something inappropriate. However, that is a situation where you are filing a counterclaim.

Any documentation related to the claim is important. Most of the time, though, our clients don’t have any of the paperwork. Sometimes, that’s part of the reason why they got behind in the first place.

Can My Attorney Work With A Creditor Or A Bank To Reduce The Amount I Owe?

Absolutely. As an estimate, between 80% and 90% settle without going to trial or without being disposed of by the court. They are disposed of by an agreement between the parties. So, as we prepare our case for trial, we are also keeping an eye out for settlement. We start contemplating and working on that almost from the minute we get the case in. In some cases, we’ll seek it sooner than in others, depending on the issues, but we can almost always resolve a case by agreement, especially with consumer debt cases.

For more information on Statute Of Limitations For Creditor Lawsuits, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (940) 440-5250 today.