Can a Debt Lawsuit be Reopened with a Debt Attorney in Texas?

Did you think your debt lawsuit was complete, only to have it resurface again, years down the line? Or perhaps, have you wondered if you’re able to challenge a past judgment? While debt lawsuits can be difficult to navigate in Texas, understanding whether they can be reopened and the immense value of a dependable, strategic attorney, you can set yourself up for success.

When it comes to reopening a debt lawsuit in Texas, it can certainly be done, but under specific circumstances and implications that require professional insight. At Heston Law, we strive to empower our clients to feel in control of their case and be confident in putting their best foot forward. When you understand your options, you can protect your rights and your assets successfully.

Understanding The Complex Ins and Outs of Debt Lawsuits

At its core, a debt lawsuit is what happens when a creditor opts for legal action in order to collect any unpaid debts. Two primary types of debt can be recollected in a lawsuit, they are:

Original debt: This type of debt is developed when a creditor, such as a bank or a credit card company, lends money to a borrower. In some cases, it also means when a creditor extends credit directly to the borrower. When it comes to collection, the lender can collect the debt themselves, hire a collection agency, or sell the debt to a debt buyer.
Purchased debt: Purchased debt happens when a debt buyer purchases debts, such as delinquent or charged-off debts, from the creditor. Typically, these are purchases for a mere fraction of the original amount owed. This means the debt purchases becomes the owner of the debt and is now responsible for its collection – either by collecting it themself or hiring an agency.

Possible Debt Lawsuit Outcomes and Key Players

During a debt lawsuit, the key players are a creditor, a debt collector, and a debtor. Primarily, the goal is to devise a legal judgment that outlines collection methods. The most important decisions made in terms of outcomes for a debt lawsuit are:

Wage garnishment: This means that a court orders the debtor’s employer to withhold funds from their salary or wages to pay off the debt to the lender. Most often, this is decided in instances when a person owes money to a creditor for things like child support, student loans, or unpaid taxes. Because of the Consumer Credit Protection Act, there a limits on how much of a person’s income can be taken.
Bank levies: This is also known as an account garnishment. It allows a creditor to seize the money directly from a debtor’s bank accounts in order to pay their debt. Typically, this is started by the lender sending a notice to your bank, allowing the bank to freeze the amount you owe in your account. If the situation is not resolved, the frozen funds will be released to settle the debts.
Property liens: Another outcome for a debt lawsuit is a property lien. This is a claim against your property, giving the creditor the right to seize and sell the property to satisfy the unpaid debt. It can be voluntary, such as a mortgage, or involuntary, like a tax lien or a judgment lien.

Finding a credible, expert debt lawsuit attorney in Texas is vital for initially securing the best outcome for your debt trial.

Reasons for Case Dismissal

In some cases, your debt lawsuit may not conclude with a judgment. It may result in a dismissal, meaning that the case is terminated and the creditor is blocked from pursuing legal action within the same court. One reason for a case dismissal is the creditor not properly serving the debtor with the initial lawsuit; along with this, the statute of limitations can also prevent a case from happening if the time limit has expired. Other factors can include things like a lack of documentation or proof, voluntary dismissal, or out-of-court settlement agreements.

Re-Opening a Debt Lawsuit: Demystifying the Process

In many cases, a dismissal isn’t a final word. There are several complex instances when a case can be reopened and a new decision can be made. The conditions that must be met include things like a motion to vacate judgment or order. A motion to vacate the judgment is a request made by the creditor to cancel or make null the previous judgment or order. Essentially, this creates a fresh slate for a new ruling. The motion is most commonly made when a debtor discovers a new, valid reason why the previous judgment was incorrect.

Common Conditions for Re-Opening a Debt Case

Aside from a motion to vacate, there are a myriad of conditions that must be met before a debt lawsuit can be revisited by a judge in Texas. The common grounds include:

Mistakes or excusable neglect: This includes things like a calendar error or a clerical filing mistake, found by either the creditor or the debtor.
Newly discovered evidence: Any evidence that could not have been found with reasonable diligence before the initial case can be a reason for re-visiting your case.
Fraud or other misconduct: It’s not uncommon for creditors to inaccurately present facts to sway a case’s outcome. The discovery of this can lead to a case reopening.
Void judgment: This means the original judgment was invalid, perhaps due to an incorrect jurisdiction or an improper service.
Default judgments: A debtor can request their case be reopened if they initially didn’t respond, resulting in a default judgment.
Improper judgment: If a debtor believes they weren’t properly served, they can argue that the initial decision was void due to inaccuracy.
Fraud: A case could also be reopened if the creditor commits any sort of fraud, often in the debtor’s favor.

Within these common grounds for reopening your debt case, there is a vast variety of deadlines, motions, and rules that make working with a debt attorney crucial. At Heston Law, we specialize in debt law and are confident in our ability to help you navigate your reopened case, regardless of the previous verdict.

Understanding Your Options: Debt Relief Options

Aside from your case’s outcome, there are many debt relief programs that your debt lawsuit attorney can help you navigate. These include things like debt settlement, which means a creditor can negotiate with a debtor to pay a lump sum equal to less than the full amount owed. Additionally, you can enroll in debt management plans to work with a counseling agency that can aid in consolidating your payment plans and helping reduce interest rates.

In some cases, reopening a debt lawsuit could cause panic. However, when you have a strong team on your side, you don’t have to worry. Our team at Heston Law wants all of our clients to be confident in our ability to secure the most positive outcome for all cases.

Achieving Financial Freedom With a Debt Lawsuit Attorney

Navigating a debt lawsuit in Texas can be extremely overwhelming – by reaching out to a trusted law team, like Heston Law, you can have a better understanding of how to proceed during your case’s retrial. Our team constantly strives to empower our clients while fighting for the best solutions for their unique concerns.