Glossary
A
- Affidavit
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A written statement of facts voluntarily sworn to and signed before an authority with the power to witness an oath, usually a notary public.
- Affirmative Defense
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In a civil lawsuit, a fact or set of facts which, if proven by the defendant, provide a defense against the unlawful conduct alleged by the plaintiff.
- Answer
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What you must send in to respond to a notice that you have been sued (the defendant’s response to the plaintiff’s filing a lawsuit).
- Attorney General of Texas
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Chief legal and law enforcement officer of Texas that you can complain to about debt collectors that might be breaking the law.
C
- Co-Trustee
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When a trust has more than one trustee, a co-trustee refers to each person or financial institution acting as a trustee.
- Conflict of Interest
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A conflict of interest occurs when a decision puts what is best for one person ahead of what is best for the other person. A guardian of the estate must avoid conflicts of interest by managing the incapacitated person's estate in the way that is best for the incapaciated person regardless of what might be good for the guardian or others.
- Consumer Financial Protection Bureau (CFPB)
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Federal United States agency responsible for consumer protection in the financial sector.
- Creditor
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The person or place with whom the alleged debt started (i.e. the car dealer, credit card company, bank).
D
- Debt Collector
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The person or agency the creditor or debt buyer hires to collect a debt. Just because a debt collector believes you owe a debt, it does not mean that their information is correct. One of the top complaints from people is being contacted by debt collectors to collect debts that they believe they do not owe.
- Default judgment
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An automatic judgment against a debtor when a debtor does not Answer a lawsuit or appear in court to defend against a lawsuit.
- Discovery
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How parties in a lawsuit get information about one another and the case before a trial.
E
F
- Fair Debt Collection Practices Act
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Federal law ensuring consumers are treated fairly by debt collectors.
- Federal Trade Commission
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Federal agency whose primary mission is consumer protection and eliminating anticompetitive business practices.
G
- Garnishment
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A legal process to collect a monetary judgment on behalf of a plaintiff from a defendant. For example, if you lose a debt collection lawsuit, the creditor can use garnishment to collect the judgment amount as long as your assets and income are not exempt. Garnishment permits the plaintiff to take the money or property of the debtor from the person or institution that holds that property, for example taking money from a bank account owned by the defendant. A plaintiff may not garnish exempt property or income.
H
- Homestead
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A home and the land it sits on that is used by a person or a family as their primary residence. A person or family may have only one homestead.
J
- Judgment Creditor
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The party that is owed a debt and has proved that debt in a legal proceeding.
- Judgment Proof
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If all of your income and property is exempt and cannot be seized by creditors, then you are judgment proof. You are likely judgment proof if you do not own anything of great value aside from exempt property and your income is from a protected (exempt) source.
O
- Office of the Consumer Credit Commissioner
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State agency regulating financial services and products. Be sure to complain to them if you are harassed or being treated unfairly by a predatory lender or a debt collector of payday or auto title loan debt.
S
- Seizure
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The act of taking assets or property through a legal process.
- Served
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A person is served when a legal document is delived in the manner required by law.
- Statute of Limitations
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The timeperiod when a lawsuit must be filed, measured from the date of a particular incident. In the context of debt collection, it is often measured from the date of the last payment made on a debt.
T
- Texas Debt Collection Act
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State law similar to the Federal Fair Debt Collection Practices Act that prohibits harassing treatment by debt collectors. It is different from Federal law, in that it applies both to the original creditor (the person or company with whom you had the original credit contract) as well as anyone collecting a debt, including, but not limited to professional debt collectors and third party debt collectors (collecting the debt for a debt buyer who purchased delinquent credit from the original creditor or another debt buyer). Click here for more info on the Texas Debt Collection Act.
V
- Validation Notice
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Notice a debt collector is required to give consumers as proof of the debt. It must be sent within five days of initial contact and include the amount of the debt, the name of the creditor, and how to dispute the debt. You should refuse to discuss any debt until you have this notice!
The CFPB has sample letters you can use to get this information.
W
- Wage Garnishment
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Court orders that direct your employer to withhold a certain sum from your wages and pay it to the creditor. In Texas, most creditors cannot garnish your wages. Wages can be garnished in Texas for unpaid taxes, unpaid or court-ordered child support and alimony, and unpaid student loans that have been declared in default.