Have you noticed that more people are being taken to court over unpaid debts lately? You’re not imagining it. As rising interest rates continue to drive up the cost of borrowing, creditors across Texas are becoming far more aggressive in collecting overdue balances. According to recent financial reports, credit card delinquencies and collection actions have climbed to their highest level in nearly a decade. For many families already struggling to keep up, this trend has led to a growing number of debt collection lawsuits in Corpus Christi—often catching people off guard.
At the Law Office of Joel Gonzalez, we understand how stressful it can be when a creditor threatens legal action. Rising rates have made repayment harder, but that doesn’t mean you’re out of options.
In this blog, we’ll explain why these lawsuits are increasing, what legal defenses you may have, and how a debt settlement lawyer can help you regain control before things spiral further.
Why Higher Interest Rates Lead to More Debt Lawsuits
When interest rates rise, monthly payments on credit cards, personal loans, and car notes increase. What once felt manageable can quickly become unpayable. As more accounts fall behind, lenders move faster to protect their interests. This often means turning accounts over to third-party collectors or filing lawsuits to secure judgments.
In Texas, creditors are more likely to sue now because:
- High rates make defaulted accounts more expensive to maintain.
- Collection agencies purchase delinquent debts in bulk and aggressively pursue repayment.
- Some lenders hope that filing a lawsuit will pressure borrowers into quick settlements.
These lawsuits can lead to serious consequences—potential liens, property seizure, or even loss of a vehicle or home through repossession or foreclosure.
How a Debt Relief Lawyer Can Protect You
If you’ve been served with a debt collection lawsuit, acting quickly is vital. Ignoring it gives the creditor an automatic advantage. A debt relief attorney can:
- Challenge the lawsuit’s validity– Many creditors lack proper documentation or exceed Texas’s statute of limitations.
- Negotiate reduced settlements– A debt settlement lawyer can often arrange payment terms that fit your budget.
- Prevent asset loss– Skilled legal guidance can protect your property from being taken to satisfy debts.
- Pursue bankruptcy when appropriate– In some cases, filing under Chapter 7 or 13 may provide lasting relief and peace of mind.
Taking Control Before It’s Too Late
What if you could stop a lawsuit before it ever reaches the courtroom? That’s where the right debt relief service can make all the difference. By responding early and understanding your rights, you can avoid harsh judgments and start rebuilding your finances on solid ground.
If you’re facing a debt collection lawsuit in Corpus Christi, TX, contact the Law Office of Joel Gonzalez. As an experienced debt collection relief attorney in Texas, Joel works directly with clients to halt creditor actions, negotiate realistic repayment plans, and protect assets from foreclosure or repossession.
Reach out today to schedule a consultation and learn how we can help you move forward with confidence.
