Law offices of G A Flores

What Is Debt Defense In Texas?


Debt defense is an area of the law where clients are sued by debt collectors. Some of the lawsuits are filed by original creditors and consumer lenders, like American Express, Citibank, Discover and some of the other credit card companies. Others are lawsuits filed by debt buyers that claim to have purchased the debt from original creditors. Some of these, for example, are Nippon Funding, CACH and Asset Acceptance. There is a whole area of law where people simply buy the old debts and then try to collect from the original debtors.

These debts are bought for pennies on the dollar actually, and then the new creditor says, “Now you owe us the money.” The issue is that they have some very severe problems in proving that they’ve actually purchased the debt. As consumers, we need to remember that thousands of people are being sued at any one time, and many people are going through this situation. Second, once the lawsuit is filed, the collector has to prove their case by the greater weight of credible evidence. That’s called a preponderance of evidence, which is under the rules of civil procedure.

Just claiming a debt is owed is not enough: a collector has to prove it. The collector has the burden of proof, not you as a debtor, and this is why you should not automatically believe that you will lose or that your case is hopeless. Many times, the collector can’t or won’t meet the burden of proof, and that is why you should have a competent debt attorney to handle your case.

What Are The Different Types Of Debt That You And Your Firm Can Help People With?

There are original creditor lawsuits filed by banks, for example, American Express, Discover, Visa or any of the many original creditors out there. Those are called original creditor lawsuits; we also help people with the so-called debt buyer lawsuits, like Midland Funding LLC, Portfolio Recovery Associates, CACH, Asset Acceptance LLC and many others. Those are called debt buyers. They are the ones that get old debts from these original creditors, buy them for pennies on the dollar and become the creditors. They then represent to everyone that now they own the debt, and they need to be paid.

However, there are some fairly serious problems with proving that they actually own the debt, and that is what we help people out with: original creditor lawsuits and debt buyer lawsuits.

Is The Debt That You Handle Mostly Credit Card Debt Or Some Other Type?

A large portion of the debt includes credit card debt and loans from banks, which are deficiency amounts. For example, if you co-signed a car and turned it back in, the creditor has what’s called a deficiency loss where you owe them the difference. You agreed to pay it, but you didn’t pay, so now they are suing you. There’s medical debt too and all kinds of debt out there that people will sue you for. These debts are subject to the same rules of civil procedure and evidence in terms of debt defense, so all the creditors and collectors have to abide by these rules.

What Is A Judgment And A Default Judgment? When Are They Typically Imposed?

A judgment is an order of the court usually granting a creditor the right to pursue a debtor’s non-exempt property. Let’s say the creditor is owed $10,000. Now the judgment creditor can try to pursue the debtor’s non-exempt property, such as savings or checking accounts, and typically, a judgment is good for 10 years in Texas. It can be continually renewed where the creditor gets a court judgment ordering the debtor to pay a certain amount.

Getting a judgment, collecting it and actually receiving it are separate matters. In the civil justice system, a court order allows someone the right to collect that non-exempt property. A default judgment is granted if the debtor didn’t file, didn’t answer or didn’t abide by the rules, so the court automatically grants the creditor the right to collect it. So usually, if a debtor is not represented or not represented properly, a default judgment will be granted.

What Is Wage Garnishment? How Much Of Your Wages Do They Take?

A garnishment depends on the circumstances; for example, in Texas, your wages cannot be garnished except for certain purposes, such as child support, alimony, taxes and student loans. Wage garnishment is an order from the court or government agency. These issues vary by state; in Texas, wages cannot be garnished except for the aforementioned purposes. In other states, there are some limits on that, and it all depends on where you are because the state can sometimes vary what the federal government allows. Here, in Texas, garnishment is quite limited actually.

For more information on Debt Defense In Texas, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (210) 734-5725 today.

Guillermo A. Flores, Esq.

Get your questions answered - Call for a free consultation - (210) 734-5725

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