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How to Get a Debt Lawsuit Dismissed in Texas

Most debt lawsuits in Texas are filed in the Justice Courts so this information is an overview of those courts. If you're facing a debt lawsuit in Texas, there are a few things you can do to try to get the lawsuit dismissed.

1. File an Answer

Most people who are sued in a debt lawsuit do nothing. Collection attorneys are used to getting easy default judgments, so filing an Answer lets them know this will not be an easy case for them. You have 14 days to file an answer after you are served with the lawsuit. The answer is a legal document that asserts your defenses but more importantly if you don’t file an answer, you could quickly lose by default. That’s called a Default Judgment. Filing your answer also creates a requirement that the court notify you of all hearings and trial settings.

     2.   Assert Defenses

In your answer, you can assert any defenses that you have to the lawsuit. Some common defenses include:

• Payment: You have already paid the debt.
• Statute of limitations: The debt is too old to be collected.
• Lack of jurisdiction: The court does not have jurisdiction over the matter in the lawsuit.
• Lack of jurisdiction: The court does not have jurisdiction over you.
• Fraud: The creditor committed fraud in connection with the debt.
• Duress: You were forced to sign the debt agreement under duress.

Some of these defense examples require you to prove the defense so it’s important to get more information about what evidence will be required.

If you don’t have any specific defenses or need more time to look into your defenses, you can always file a simple answer with a general denial. A general denial is easy and looks like this:

Defendant denies each and every allegation, and demands strict proof thereof as required by the Texas Rules of Civil Procedure.

That is called a general denial and is adequate for an answer to a debt lawsuit.

It’s important to remember that personal circumstances like medical problems or job loss are not defenses to a breach of contract claim in a debt lawsuit. You may have very good reasons why you couldn’t pay, but the judge has to follow the law.

     3.   File a Motion to Dismiss

If you believe that you have a strong defense to the lawsuit, you can file a motion to dismiss. A motion to dismiss asks the court to dismiss the lawsuit without a trial. However, many courts would rather set the case for a short trial to hear the same information and review evidence.

Courts are more likely to hear a motion to dismiss when you assert the court lacks jurisdiction. The primary reason a court could lack jurisdiction over the matter is that it exceeds the jurisdictional limits of the courts. In Texas, Justice Courts are limited to a maximum amount of $20,000 at issue in the lawsuit. Lawsuits brought for more than $20,000 should be quickly dismissed.

Another reason a court should quickly dismiss the debt lawsuit is when the court does not have jurisdiction over you. Most debt lawsuits should be filed in the Justice Court precinct where the defendant resides or where the contract was signed, if there was a signed contract. If you don’t reside in the precinct where the lawsuit was filed then you may get the debt lawsuit dismissed quickly. Note that in many situations, the creditor can fix the issues then file a new lawsuit against you for the same debt.

     4.   Attend all Hearings and Trial

If the court does not grant your motion to dismiss, you may have to attend hearings and a trial. If you don’t show up for any hearing or trial the judge may grant a default judgment against you. If you show up and the collection attorney doesn’t, the judge may dismiss the plaintiff’s case.

     5.   Appeal the Decision

If the judge rules against you, you can appeal the decision. That sends the case to your County Court where it starts all over again. To appeal a Justice Court loss, you will be required to post a cash bond in an amount twice as much as the judgment, post a surety bond or file an affidavit of inability to pay the bond. If your appeal is accepted, the process starts all over again in the higher court.

By taking these actions, you may wear out the collection attorney or they may not show up at a hearing or trial. By hanging in there you increase your chances of getting a debt lawsuit dismissed, but it can be a complex and challenging process. A dismissal under any of the circumstances discussed isn’t always the best outcome. That’s because it may take a lot of time and money to get a dismissal that is without prejudice as to the plaintiff’s rights. That means the lawsuit may be over, but the creditor can still claim you owe the debt, report it to the credit bureaus and they can file another lawsuit for the same debt.

If you are facing a debt lawsuit, it is important to seek the advice of an attorney. An attorney can help you to assess your defenses and develop a strategy for getting the lawsuit dismissed.