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Texas Collections Questions & Answers
1 Answer | Asked in Civil Litigation and Collections for Texas on
Q: my HOA hired a collection firm for a miscommunication problem regarding my quarterly payments can they over charge me?

my HOA hired a collection firm for a miscommunication problem regarding my quarterly payments

the initial amount owed did not exceed the 1000 USD but the collection agency plans on charge me over 6K

even after I went and explain the situation to the board regarding the... View More

John Michael Frick
John Michael Frick
answered on Sep 30, 2024

The short answer is yes. An HOA is usually entitled to recover "reasonable and necessary" attorney fees to collect unpaid dues payments. The amount of attorney fees that is "reasonable and necessary" depends upon the amount of time involved. This amount often exceeds the... View More

1 Answer | Asked in Business Law and Collections for Texas on
Q: I'm being sued by Discover credit card after going through debt consolidation. do I need lawyer ?

Is debt consolidation legal? I have never missed a payment to debt consolidation. I have multiple sclerosis and am so sick most of the time, Im frustrated and scared to death . any helpful information on what to do would be so very appreciated. I didnt know debt consolidation could land me in this... View More

Joel Gary Selik
Joel Gary Selik
answered on Sep 7, 2024

The debt consolidation companies are not always clear on what they can or cannot due. The creditor must agree to the payment plan or the compromised payment. Without it they can sue. Find defenses to the defense and negotiate a settlement. If you still have many other debts, bankruptcy might be... View More

1 Answer | Asked in Banking and Collections for Texas on
Q: If your vehicle was repoed do they have the right to seize your bank account? I live in Garrison Texas I have an account

An account at cadence Bank in Garrison Texas they have froze my bank account because of this repoed car is that legal

John Michael Frick
John Michael Frick
answered on Jul 5, 2024

Generally speaking, a lender on a vehicle loan cannot freeze funds on deposit at a different bank or financial institution without filing a lawsuit and obtaining a pre-suit writ of garnishment.

Banks and financial institutions often ask their own customers to agree that, if the customer...
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1 Answer | Asked in Collections for Texas on
Q: What happens if I disregard a Post-Judgement Interrogatory on a 6 year old judgement?

A judgement was obtained by Discover Card on ~ $6100 in credit card debt on Sep. 12th 2018 but I was not even aware of this until now when I received this document that states I have 30 days to reply. I own my own home that is in poor condition, and a 1999 Chevy Truck that is not currently running.... View More

John Michael Frick
John Michael Frick
answered on Jul 1, 2024

If you disregard a post-judgment interrogatory, most likely the judgment creditor will file a motion to compel. A judge will most likely order you to answer the interrogatory and award the judgment creditor additional attorney fees.

If you disobey the judge's order, the judgment...
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1 Answer | Asked in Insurance Bad Faith and Collections for Texas on
Q: There was a garage fire that melted my HELLCAT back in Sept of 2023. He had dropped the coverage to liability 4 days bef

Before the fire. There was still several days left in the month where the premium was paid already. They refused to pay for my car to be repaired and everything . But they have sent the insurance premium to the collection agency and have stated that the policy wasn't cancelled till January.... View More

Tim Akpinar
Tim Akpinar
answered on Jun 19, 2024

A Texas attorney could advise best, but your question remains open for three weeks. Your question presents things that need to be sorted out for an attorney to advise meaningfully. Who is "he," the person who dropped your coverage? Why weren't you the one in dialogue with the carrier... View More

1 Answer | Asked in Bankruptcy and Collections for Texas on
Q: I have a default judgment and the bench hearing is tomorrow. Should I negotiate and pay before the hearing tomorrow?

I was on a payment plan with portfolio recovery but missed a payment or two because my debit card was hacked and forgot to update my account. The immediately sued me after.

James L. Arrasmith
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answered on Jun 9, 2024

It's understandable that you’re in a difficult situation right now. If you have a bench hearing tomorrow, it’s crucial to weigh your options carefully. Negotiating and paying the debt before the hearing could show good faith and potentially influence the court's decision positively.... View More

1 Answer | Asked in Banking and Collections for Texas on
Q: My friend said to sign a check with our names on it. She wants half despite owing me more.

I informed her of the check when I got it from my school loans and it had her name on it. We filed taxes together and it was held for my school loans. she said sign her name. I did. I deposited into my account. She owes me significantly more than "her half" of the check. She is now... View More

John Michael Frick
John Michael Frick
answered on May 28, 2024

More information is required. People typically cannot "file taxes together" unless they are married. Checks for school loans are almost always made payable to the borrower to whom the loan was made, not to two "friends." They typically aren't even made payable to both a... View More

2 Answers | Asked in Personal Injury, Tax Law and Collections for Texas on
Q: I'm wondering if my creditors could get their hands on money i received from injury settlement?

I received injury settlement can my creditors take from my account from these monies?

Also do I have to pay tax on the settlement?

James L. Arrasmith
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answered on Apr 27, 2024

The answer to your questions depends on the specific circumstances of your case and the laws of your jurisdiction. However, here are some general considerations:

1. Creditor claims on settlement funds:

In many cases, settlement funds from a personal injury claim are protected from...
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2 Answers | Asked in Personal Injury, Tax Law and Collections for Texas on
Q: I'm wondering if my creditors could get their hands on money i received from injury settlement?

I received injury settlement can my creditors take from my account from these monies?

Also do I have to pay tax on the settlement?

Tim Akpinar
Tim Akpinar
answered on May 2, 2024

It could depend on who the creditors represent. In terms of taxes, pain and suffering are generally not taxed. The other damages could be treated differently. This is something your attorney, or a tax attorney should advise on after seeing the breakdown of the types of damages your case involves.... View More

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1 Answer | Asked in Civil Litigation, Collections and Small Claims for Texas on
Q: Should I file a motion to deny the continuance request filed by the Debt collector suing me due to false information?

Court is set for May 10 at the Justice of Peace precinct in my county. The copy of the continuance request I received states it is due to them not receiving an answer to the summons and wanting to prepare paperwork for a default judgement instead. They requested it be set back 60 days but I did... View More

John Michael Frick
John Michael Frick
answered on Apr 24, 2024

You should file a Response to the Motion for Continuance stating that you did properly file your answer with the justice of the peace court and attach a file-marked copy of your answer as an exhibit to your Response. Unless there are other factors at play, I would state that you are ready to... View More

3 Answers | Asked in Real Estate Law, Tax Law, Collections and Landlord - Tenant for Texas on
Q: Can a judgement be filed against an heir that doesn’t reimburse their share of property taxes to the paying heir?

Texas; Want to pay taxes before county seizes the property. Heir who is refusing to pay is squatting in the house. (There’s a court order for back rent, etc. that hasn’t been paid either. House has no offers because of disrepair/won’t appraise.

James L. Arrasmith
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answered on Apr 11, 2024

In Texas, if one heir is paying the property taxes on a jointly owned property while another heir is not contributing their share, the paying heir may have legal options to recover the unpaid amounts. Here are a few potential avenues:

1. Partition lawsuit: The paying heir can file a...
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2 Answers | Asked in Contracts, Business Law, Civil Litigation and Collections for Texas on
Q: I just got served in a civil action lawsuit against a company I'm an independent contractor for, and have no ownership

The Civil Action Lawsuite is against Fresh Central Trading LLC., it names its President and Owner A.G., and also then names me. When I read the documents it states that I'm an owner and officer of the company and I'm just an independent contractor from Canada who is here on a TN Visa... View More

John Michael Frick
John Michael Frick
answered on Mar 19, 2024

If you are named as a party in the lawsuit, you have less than three weeks from when you were served to hire an attorney to file an answer on your behalf to the lawsuit. (In Texas state court, your answer must be filed no later than the first Monday following the expiration of twenty days from the... View More

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1 Answer | Asked in Business Law, Collections and Construction Law for Texas on
Q: Is a Texas City entity required to act as surety for sub-contractors on projects under $50,000 with no Bond in place?

City of Princeton, TX awarded a contract for $49,720 (no bond required) to their vendor. The vendor hired my company to do the whole wireless project for $45,500. We completed the project and provided all the hardware. The city paid the vendor, the vendor has refused to pay us. The city claims they... View More

John Michael Frick
John Michael Frick
answered on Mar 14, 2024

No, a city is not required to act as surety for subcontractors. You have a valid cause of action for breach of contract against the person or entity you contracted with.

There are numerous things that could be in that subcontract to protect you from that person being paid by the City and...
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2 Answers | Asked in Banking and Collections for Texas on
Q: A bank is holding my car title as collateral for a separate car loan that they charged off 5 years ago.

Right after the rep processed my final car payment over the phone, she told me they wouldn’t be giving me my title until I paid the charged off $6k for a separate vehicle loan I had through them. Can they legally hold the title on my paid off vehicle until I pay off a separate vehicle loan for a... View More

John Michael Frick
John Michael Frick
answered on Feb 29, 2024

Likely yes. This is called cross-collateralization. In many secured loans, the collateral is pledged not only for the purchase money loan to buy the collateral (in your case, a car) but also for any other loan made by the lender.

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2 Answers | Asked in Banking and Collections for Texas on
Q: A bank is holding my car title as collateral for a separate car loan that they charged off 5 years ago.

Right after the rep processed my final car payment over the phone, she told me they wouldn’t be giving me my title until I paid the charged off $6k for a separate vehicle loan I had through them. Can they legally hold the title on my paid off vehicle until I pay off a separate vehicle loan for a... View More

James L. Arrasmith
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answered on Mar 2, 2024

It's understandable that you're concerned about your situation. However, it's important to know that a bank cannot typically hold your car title as collateral for a separate loan unless it's explicitly outlined in the terms of the loan agreement you signed. In most cases,... View More

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1 Answer | Asked in Divorce, Family Law, Business Law and Collections for Texas on
Q: Per decree indemnity clause am I entitled to be reimbursed legal & receivers fees paid to collect judgement ($200K)?

I was awarded 70% of marital estate. Ex sold the asset (our business) while under standing orders for purported zero dollars even though I was awarded value of $2m. I have paid over $200k to attorneys and receiver to try to collect. Ex has been sent to jail twice for contempt. One receiver even... View More

John Michael Frick
John Michael Frick
answered on Jan 26, 2024

Attorney fees are typically recoverable in a suit to enforce an indemnity obligation just as they are in any other suit on a written or oral contractor.

A receiver's fee is typically paid from the money recovered by the receiver "off the top." Whatever proceeds remain and...
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2 Answers | Asked in Collections and International Law for Texas on
Q: I owe money to someone in a foreign country, can they enforce the judgement in the US?

My business partners back in my home country started suing me for money just after I left to the USA, my dad hired an attorney but lost 2 cases and now they want me to pay over 150k USD, can they uphold the judgement of that foreign country in the Middle East and come after me here in the US? I am... View More

James L. Arrasmith
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answered on Jan 26, 2024

In your situation, the enforceability of a foreign judgment in the United States, and particularly in Texas, depends on several factors. Generally, U.S. courts may recognize and enforce foreign judgments under certain conditions, but this process is not automatic.

Texas, like many states,...
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3 Answers | Asked in Banking and Collections for Texas on
Q: where can I lookup default judgements on myself?

money went missing from my bank account and credit score dropped. indication of a creditor lawsuit likely. where may I lookup default judgements?

James L. Arrasmith
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answered on Feb 25, 2024

If you suspect that a default judgment may have been entered against you, there are several steps you can take to look it up. Start by checking the public records in the county where you live or where the creditor may have filed the lawsuit. Many court systems offer online access to their records,... View More

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1 Answer | Asked in Small Claims and Collections for Texas on
Q: How do I answer a suit against me by a CC co. when the debt is mine but I don't have income? Do I lose automatically?

I want to know how to write an appropriate answer for the petition for which I was summoned and I would like to know what possibilities to expect. I read online that not having income to pay your debt is not a defense but it is the only true explanation I have. All the online advice is about... View More

John Michael Frick
John Michael Frick
answered on Jan 22, 2024

You can file a general denial. Lots of things can happen to derail a lawsuit even in such a case. For example, the plaintiff may not be able to prove that you owe the money or how much. Debt collection cases by credit card companies in small claims courts are frequently handled by young,... View More

1 Answer | Asked in Collections and Banking for Texas on
Q: I’m not sure what type of lawyer I need. Shell federal credit union is suing me for debt collection.
James L. Arrasmith
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answered on Jan 14, 2024

In your situation, seeking the assistance of a consumer protection attorney or a debt collection defense attorney would be advisable. These attorneys are experienced in handling cases involving credit unions and debt collection matters.

They can provide guidance on how to respond to the...
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