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Can a Bank File a Lawsuit in Small Claims Court

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  • 10-25-2015, 07:48 PM
    loanproblems
    Can a Bank File a Lawsuit in Small Claims Court
    My question involves collection proceedings in the State of: Texas.

    Can a bank sue you in small claims court? I read online that they cannot. Is this true?
  • 10-25-2015, 10:09 PM
    Taxing Matters
    Re: Can a Bank File in Small Claims Court
    Texas no longer has “small claims courts.” The legislature eliminated those as of the end of 2013. Small claims cases are now only brought in justice court. Banks and other entities whose primary business is lending or collecting debts cannot bring cases in justice court. See the Texas Bar guide How to Sue in Justice Court for more information on how those courts work. You will see there the discussion of who may sue in justice court.
  • 10-26-2015, 06:07 AM
    loanproblems
    Re: Can a Bank File in Small Claims Court
    So, becuase of this, would it be much more expensive to be sued rather than if it was in another state? If a change of venue was requested, since there are no small claims courts, the case couldn't be transferred. Could it?
  • 10-26-2015, 07:12 AM
    Mr. Knowitall
    Re: Can a Bank File in Small Claims Court
    What are you trying to ask? You can't "change venue" between states. To the extent that a court has subject matter jurisdiction, a change of venue simply changes the forum.
  • 10-26-2015, 08:59 AM
    loanproblems
    Re: Can a Bank File a Lawsuit in Small Claims Court
    If the court case is in the wrong state, in small claims court?

    If the case is filed in incorrect state, in small claims, what would I do to get it moved to texas, becuase small claims doesn't exist in texas?....is it more expensive to file a lawsuit in tx

    Does that make sense? Let's Say the lawsuit was filed in Phoenix, AZ. Which in fact does hear small claim cases from banks. However, I moved to Austin, TX...which does not have small claims and will not allow small claim filings from any bank. Since the case was filed in the incorrect couet, becuase I no longer live there, what would I file? What would the court cost be for the creditor?
  • 10-26-2015, 09:09 AM
    adjusterjack
    Re: Can a Bank File a Lawsuit in Small Claims Court
    Quote:

    Quoting loanproblems
    View Post
    If the court case is in the wrong state, in small claims court?

    If the case is filed in incorrect state, in small claims, what would I do to get it moved to texas, becuase small claims doesn't exist in texas?....is it more expensive to file a lawsuit in tx

    Does that make sense? Let's Say the lawsuit was filed in Phoenix, AZ. Which in fact does hear small claim cases from banks. However, I moved to Austin, TX...which does not have small claims and will not allow small claim filings from any bank. Since the case was filed in the incorrect couet, becuase I no longer live there, what would I file? What would the court cost be for the creditor?

    The first thing that you have to understand is that the creditor isn't going to be concerned with the additional cost so it won't make any difference in the outcome to you. If you have to know, the creditor would be paying its lawyer but it's probably paying its lawyer anyway even though lawyers are not permitted in AZ small claims court.

    The only advantage to you, living in Texas now, is that your wages can't be garnished (Texas Constitution, Article 16, Section 28).

    What you would have to do for the Phoenix case is move for a dismissal base you not living there anymore. If you do nothing, a default judgment could be entered that can be domesticated (transferred) to a Texas court and enforced in Texas.
  • 10-26-2015, 09:13 AM
    loanproblems
    Re: Can a Bank File a Lawsuit in Small Claims Court
    For a $1000 dollar debt, is it likely for them to first initially file the case, then after dismissal, file it again, and then take me to court? If the case is transferred to Texas...Does the Texas wage garnishment law still apply?

    - - - Updated - - -

    When you ask for dismissal does new living location have to be told?
  • 10-26-2015, 09:16 AM
    Mr. Knowitall
    Re: Can a Bank File a Lawsuit in Small Claims Court
    Are we actually talking about an Arizona lawsuit? The fact that you move does not necessarily mean that you cannot be sued at you former address. The rest depends on the facts, and the laws and court rules of the actual state where the lawsuit was filed.
  • 10-26-2015, 09:19 AM
    loanproblems
    Re: Can a Bank File a Lawsuit in Small Claims Court
    Suit in Arizona. Live in Texas. Can't be summoned if I don't live there...
  • 10-26-2015, 09:33 AM
    Mr. Knowitall
    Re: Can a Bank File a Lawsuit in Small Claims Court
    Quote:

    Quoting Ryan Pianesi
    View Post
    Can't be summoned if I don't live there...

    Why do you imagine that to be the case?
  • 10-26-2015, 09:44 AM
    loanproblems
    Re: Can a Bank File a Lawsuit in Small Claims Court
    I'm asking.

    What should be done? Is it likely to be sued for 1000

    If the a lawsuit was filed in Arizona, wouldn't they have to move it to my local court since state laws are different?
  • 10-26-2015, 10:47 AM
    adjusterjack
    Re: Can a Bank File a Lawsuit in Small Claims Court
    Quote:

    Quoting loanproblems
    View Post
    For a $1000 dollar debt, is it likely for them to first initially file the case, then after dismissal, file it again, and then take me to court?

    Yes, quite likely. What you are missing here is that this is a bank suing you for either a loan or a credit card default and the contract almost certainly has an attorney fee provision that would require you to pay the bank's attorney fees if you lose. Those fees get added to the judgment and your $1000 debt could easily end up $2000 to $5000 depending on how much work you make their attorney do.

    Quote:

    Quoting loanproblems
    View Post
    If the case is transferred to Texas...Does the Texas wage garnishment law still apply?

    Yes.

    Quote:

    Quoting loanproblems
    View Post

    When you ask for dismissal does new living location have to be told?

    Yes.

    Quote:

    Quoting loanproblems
    View Post
    Suit in Arizona. Live in Texas. Can't be summoned if I don't live there...

    If you were sued and served in Arizona then you have already been "summoned" no matter where you live now and there's a good chance that the Arizona court would allow the case to proceed there.

    Quote:

    Quoting loanproblems
    View Post

    What should be done? Is it likely to be sued for 1000.

    If the a lawsuit was filed in Arizona, wouldn't they have to move it to my local court since state laws are different?

    Both questions have already been asked and answered.
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