What Is a Credit Card Judgment in Texas?

Texas residents who have met with financial difficulty may wonder about the abilities of their credit card companies to collect the unpaid debts. Consumers in Texas can get sued by their card companies. If the card company wins, the court grants a judgment and makes it much easier for the company to collect the debt.

Debts

A credit card is usually a form of unsecured credit, meaning your card company doesn't require that you give it collateral or some form of secured interest in your property. If you don't pay back you credit card balances or miss your payments, the card company has to either convince you to pay back the debt or sue you to recover it. If it sues you, it then becomes a secured creditor.

Lawsuits

A credit card lawsuit usually happens when you fall behind on your payments and owe a significant amount of money, though a card company can sue you whenever you default on your loan regardless of how much you owe. The card company must, usually, file the lawsuit in the Texas county in which you live. It must also tell you that the lawsuit has been filed, either by sending it through certified mail or personally delivering it to you.

Judgment

A credit card judgment is a court decision in which a judge has ruled in favor of the credit card company that sued you for the unpaid debt. The judgment will state the amount of money you must pay, along with any interest or fees the court awards the plaintiff, meaning the company that sued you. If the company obtained a judgment without your going to court, it means the lawsuit was filed against you and you did not respond in time or failed to show up in court. This is known as a default judgment and is just as valid as if you had shown up and lost.

Collections

Once a creditor has sued you in Texas and received a judgment, the creditor has 10 years in which to collect upon the debt, known as the statute of limitations. The creditor can take a number of actions to collect upon the debt. While it may continue persuasive efforts, it can also try to garnish your bank account or seize some of your property and force its sale.