Can a Credit Card Company Sue You in Texas?
Yes. Credit card companies (or debt buyers) can and do sue for unpaid balances in Texas.
Legal Basis
- Contract law: Cardholder agreement = binding contract
- Statute of limitations: 4 years for written contracts (Tex. Civ. Prac. & Rem. Code § 16.004)
- FDCPA applies: Regulates collection practices, not right to sue
Where Suits Are Filed
| Court | Jurisdiction Limit | Typical Use |
|---|
| Justice of the Peace (JP) | ≤ $20,000 | Most credit card suits |
| County Court at Law | $20,000 – $250,000 | Larger balances |
| District Court | > $250,000 | Rare for credit cards |
Process
- Petition filed → citation served (personal, substituted, or posting)
- Answer due by 14 days (JP) or 20 days (County/District) after service
- Default judgment if no answer → wage garnishment (not in TX for consumer debt), bank levy, property lien
- Discovery, mediation, trial
Texas-Specific Protections
- No wage garnishment for consumer debt (Tex. Const. Art. 16 § 28)
- Homestead exemption protects primary residence
- Personal property exemptions ($50K/$100K)
- Debt collection statutes (Ch. 392) mirror FDCPA
Defenses
- Statute of limitations expired
- Lack of standing (debt buyer can't prove chain of title)
- Identity theft, billing errors, paid/settled
- Improper service
Action Required
Never ignore a lawsuit. File answer. Consult Texas Bar referral or legal aid. Settle if valid. Bankruptcy (Ch. 7/13) stops suit.
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