What Happens If You Ignore a Lawsuit in Texas?
Some defendants assume that ignoring a lawsuit will cause the problem to disappear. In Texas courts, the opposite usually happens. If the defendant is a corporation or limited liability company, the business must generally appear through licensed counsel in Texas courts. A more detailed explanation of that rule can be found in our article “Can an LLC or Corporation Represent Itself in Court in Texas?”
When a defendant fails to respond to a lawsuit, the plaintiff may obtain a default judgment.
Default Judgments Under Texas Law
If a defendant is properly served with a citation and petition but fails to file an answer, the plaintiff may request a default judgment under Texas Rule of Civil Procedure 239.
A default judgment allows the plaintiff to obtain relief without the defendant presenting a defense.
Depending on the claims asserted, this may include:
monetary damages
attorney’s fees
court costs
injunctive relief
How Default Judgments Occur
Once the answer deadline passes, the plaintiff may move forward with a default judgment.
In some cases, the court may require evidence or hold a hearing to determine damages. However, because the defendant did not respond, the court generally accepts the allegations in the petition as admitted.
Overturning a Default Judgment
I regularly receive calls from people who have discovered that a default judgment was entered against them.
In some situations it may be possible to challenge or overturn a default judgment, but these situations are highly fact-specific and time-sensitive.
Texas courts apply the standard established by the Texas Supreme Court in Craddock v. Sunshine Bus Lines, Inc., 134 Tex. 388 (1939). Under the Craddock rule, a defendant may obtain a new trial if:
The failure to answer was not intentional or the result of conscious indifference.
The failure resulted from accident or mistake.
The defendant has a meritorious defense and granting a new trial will not unduly prejudice the plaintiff.
Even when these elements can be satisfied, strict deadlines apply. Motions for new trial and other remedies must generally be filed quickly after the judgment is signed.
Because of these deadlines, anyone who learns that a default judgment has been entered should seek legal advice immediately.
Why Acting Early Matters
Once a default judgment is entered, defending the case becomes significantly more difficult.
Responding promptly to a lawsuit allows the defendant to investigate the claims, gather evidence, and present defenses before judgment is entered.
Collecting a Judgment Is Often the Hardest Part
Winning a lawsuit is only part of the process. Collecting the judgment can be far more difficult.
In my practice, I regularly handle post-judgment collection and enforcement. Once a judgment is entered, Texas law allows a creditor to pursue a number of remedies, including writs of garnishment, writs of execution, and post-judgment discovery.
Post-judgment discovery can require the debtor to disclose assets, bank accounts, business interests, and other financial information. When appropriate, those assets can then be reached through garnishment or execution.
The practical challenge, however, is that some defendants simply do not have collectible assets. If a debtor has no bank accounts, real property, or non-exempt property, collection can be difficult regardless of how strong the underlying judgment may be.
That is why evaluating a defendant’s financial situation early in a dispute can sometimes be just as important as evaluating the legal merits of the case.
Final Thoughts
Ignoring a lawsuit rarely makes the problem disappear. Instead, it often leads to a judgment being entered without the defendant’s side of the story being heard.
If you receive a citation and petition in Texas, it is important to act before the answer deadline passes.
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