What to do if you are sued for a debt

You open the door and someone hands you a stack of papers. It says you have been sued over a credit card, a medical bill, or a personal loan. The first instinct is either panic or to set it aside and hope it goes away. Neither helps.

This guide explains what a debt lawsuit is, what happens if you do nothing, and what options are worth discussing with a lawyer. I am describing general rules under Texas and federal law. Your own case depends on the papers you received and the history of the debt.

I was served with a debt lawsuit. What do I do first?

Look at two things before anything else: the date you were served and the deadline to answer. Write both down. Then read the petition to see who is suing you, how much they claim, and what account they say it comes from.

The party suing may be the original lender or a company that bought the debt later. That difference can matter. Gather any statements, payment records, letters from collectors, and settlement offers you have.

Do not ignore the papers. Ignoring them is the one choice that almost always makes things worse.

How long do I have to answer?

It depends on which court the case is in. Many debt cases are filed in justice court, which hears civil claims up to $20,000 and has its own rules for debt claim cases. The answer deadline there is short and is printed on the citation.

In a Texas county or district court, an answer is generally due by 10:00 a.m. on the Monday after 20 days from service (Rule 99(b)). In both courts, the clock runs from the date you were served.

An answer is a written response filed with the court. Once it is filed, the creditor has to prove its claim. That alone changes the dynamic of many debt cases.

Does filing an answer stop the case?

No, the case continues. What an answer does is stop the creditor from winning by default and give you the chance to raise defenses.

Common questions in a debt case include whether the amount is correct, whether the company suing actually owns the debt and can prove it, whether interest and fees were added properly, and whether the four-year limitations period for debt in Texas has already run (Civil Practice and Remedies Code § 16.004). Some of these are defenses that are lost if they are not raised in time.

An answer can also open a door to negotiation. Many debt cases end with a settlement or payment agreement rather than a trial.

Which court is it in, and what changes?

The court matters because deadlines and procedure differ. The table below gives a general picture. Your citation tells you which court you are in.

Court	Typical debt cases	Answer deadline	What to know
Justice court	Claims up to $20,000	Short; printed on the citation	Simpler procedure, but deadlines are strict and defaults are common
County court at law	Larger claims, within its limits	Monday after 20 days from service	Formal rules of procedure and evidence apply
District court	Larger claims	Monday after 20 days from service	Most formal procedure; discovery and motions are common

If you are not sure which court you are in, look for the court name and cause number at the top of the citation.

What if I do not answer?

If no answer is filed, the creditor can ask for a default judgment. A judgment is a court order that you owe the amount stated. After a judgment, the creditor can use collection tools such as a writ of execution or a bank account garnishment, and a judgment lien may attach to certain property.

Texas law protects some property. A homestead is generally protected, and the Property Code exempts certain personal property up to set limits. For most consumer debts, Texas does not allow wage garnishment. Exceptions include child support, certain taxes, and certain student loans. These protections are real, but they are technical, and a lawyer should look at your specific situation.

• Servicekey deadline

  You receive the citation and petition; the answer clock starts

• Answer deadlinekey deadline

  An answer has to be on file by the date on the citation

• If no answer

  The creditor can request a default judgment

• If you answer

  The creditor must prove its claim; settlement talks often begin

• Judgment

  After a judgment, collection steps become possible, subject to exemptions

I am overwhelmed. How do I find the right path?

Here is a fictional but realistic example. A woman was served with a lawsuit by a company she had never heard of, claiming she owed several thousand dollars on an old store card. She was sure she had paid it, or at least most of it. Her first thought was to call the company and argue.

A better first step was to note the service date, collect her old statements, and talk to a lawyer before the answer was due. The lawyer could check whether the company could show it owned the account, whether the amount matched her records, and how old the last payment was. With an answer on file, she had time to sort out the facts and decide whether to contest the claim or negotiate.

1. 1

   Note the datesDay one

   Write down the service date and the answer deadline

2. 2

   Gather your records

   Statements, payment proof, collector letters, and any prior agreements

3. 3

   Talk to a lawyerBefore the answer deadline

   Review the claim, the court, and possible defenses

4. 4

   File an answer

   Keeps defenses alive and requires the creditor to prove its case

5. 5

   Decide the next step

   Contest the claim, negotiate, or agree to a payment plan

When should a lawyer get involved?

As early as possible, and before the answer deadline. A lawyer can read the petition, check the court and the deadline, and identify defenses you might not know you have. If a default has already been entered, a lawyer can tell you whether any option to set it aside is still open.

If you received a letter from a collector before any lawsuit, the federal Fair Debt Collection Practices Act gives you the right to dispute the debt in writing within 30 days of the validation notice. For more on the kinds of letters that often come before a lawsuit, see the guide on demand letters. For deadlines in general, see statutes of limitations.

The short version

A debt lawsuit is a process with deadlines, and the answer deadline is the one that matters most at the start. Answering on time keeps your defenses and your options. Ignoring the papers usually leads to a default judgment. Note the date, gather your records, and get advice before the deadline passes.