How to Stop a Texas Credit Card Judgment

A judgment is something that should be avoided if possible. Judgments entered against you will appear on your credit report and create a devastating blow to your credit score. By the time a creditor is pursuing legal action, your time is limited and you must act quickly to prevent the case from moving forward. Attempting to settle the debt or filing bankruptcy are two methods to stop the forward progression of the court action.

Instructions

Attempt to Settle the Credit Card Debt in Texas

1

Review your financial situation to see how much money you can put towards the credit card debt. Your creditor does not like to proceed to a lawsuit but will require some payment from you to halt the proceedings. If you have a lump sum, decide on the amount you can pay at one time. If this is not possible, decide on the amount of money you can put towards the debt each month. Do not agree to pay more than you know you can afford.

2

Contact the person threatening the lawsuit. If possible record the phone call. Texas law allows recording if you are one party on the call. You do not need to disclose the fact that you are recording to the other party. Tell the person you wish to attempt to come to a settlement agreement to avoid the judgment. Explain your situation and why you cannot pay the debt in full, and express that you have a desire to take care of the debt to the extent you are able to.

3

Explain the amount you are able to pay. Be clear that this is the most you can possibly afford. Do not argue with the representative. If he gets threatening or abusive, remain calm. If your representative says something that is against the Texas Debt Collection Practices, you may be entitled to sue him.

4

Make him understand that your offer is the best you can do. If you are borrowing the funds, tell him this. You need to convince him that you simply do not have the resources to pay more than you can afford.

5

Expect the representative to deny your offer and push for a higher payment amount to settle. The creditor does not want to go to court but he is trained to get the most money he can negotiate. He may tell you he is going to move forward with the judgment and garnish your wages. If he does get a judgment, he can do this, but this is usually used as a tactic to scare you and push you into paying more.

6

Never agree to give the representative your bank information. If you agree to a settlement, require he send you a letter stating the terms of the agreement. Make your payment via cashiers check or money order. If you cannot come to an agreement, wait a few days and make contact again. Settlement agreements often take several attempts.

Contact a Texas Bankruptcy Attorney

7

Contact a local Texas bankruptcy attorney. Most will offer a free consultation. Set an appointment for the soonest possible date.

8

Gather all of your financial information. List all of your debts and include household childcare auto, and any other expenses you have.

9

Meet with the attorney and give him all of your financial information. He will let you know your options and tell you if filing for bankruptcy in Texas is an option. If bankruptcy is possible and you wish to proceed, retain the attorney. This will stop the judgment from moving forward.

10

Contact the creditor and give him your attorney's contact information. Your attorney will handle all further communication with your creditors and ensure the judgment process is stopped and does not proceed in the Texas court of law.