A constable or process server just handed your registered agent, your office manager or you a citation and petition. A supplier, lender, landlord or financing company is suing the business, and you may be named personally as well. This page is a practical checklist for the next two to three weeks: what to do first, who has to respond, what to gather and what to avoid. For an overview of the types of commercial claims and the defenses to them, see our main Texas business debt defense page.

Free Case Evaluation(214) 945-2990

The First Few Days: Deadlines, Defendants and Service

Step 1: Find the answer deadline for each defendant

Look at the top of the citation for the name of the court. That tells you which deadline applies.

Justice court (a "Justice of the Peace" court, for claims up to $20,000): the Answer is due by the end of the 14th day after service. If that day is a weekend or legal holiday, it moves to the next business day (Rule 502.5).
County court at law or district court: the Answer is due by 10:00 a.m. on the Monday after 20 days have passed since service (Rule 99(b)).

If the company and an owner were both sued, each one has a separate deadline that runs from the day that defendant was served. The owner may be served a week after the company, or the other way around. Write down each date of service and run each one through our answer deadline calculator. Do not wait for the last day.

Step 2: Confirm who has to answer and how

The petition's first pages list every defendant. Each named defendant must file its own Answer, or be included in an Answer filed by a lawyer for several defendants.

An LLC or corporation generally must appear through a licensed attorney in county or district court. An owner's personal letter to the court on the company's behalf is not a safe substitute. In justice court, Rule 500.3(b) allows the entity to be represented by a non-attorney employee, owner, officer or partner.
An owner or guarantor named individually must answer for himself or herself. The company's Answer does not protect a guarantor who was separately served.
A sole proprietor is personally the defendant, even if the petition uses the business's assumed name.
A general partnership and its partners may be sued together; partners in a general partnership can be personally responsible for partnership debts.

Step 3: Check how the business was served

Texas law lets a plaintiff serve an entity through its registered agent (Business Organizations Code § 5.201), and also treats certain people as agents for service as a matter of law, such as a corporation's president and vice presidents and an LLC's managers or, for a member-managed LLC, its members (§ 5.255). If the registered agent cannot be found at the registered office with reasonable diligence, the plaintiff may serve the Texas Secretary of State instead (§ 5.251).

That last route is a common way businesses miss a lawsuit: the Secretary of State forwards the papers by mail, and if the address on record is out of date, no one at the company sees them. If you learned about the case from a bank freeze, a letter from the plaintiff's lawyer or a search of court records, check the court's docket now to see whether a default judgment has already been signed. In county and district court a motion for new trial is due within 30 days after the judgment is signed (Rule 329b); in justice court a motion to set aside a default is due within 14 days (Rule 505.3). Our guide on how to reopen a default judgment explains the later options.

Step 4: Understand Your Personal Exposure as a Guarantor

Read the caption of the petition carefully. If you are listed by your own name, not just as "registered agent" or "president" of the company, the plaintiff is seeking a judgment against you personally. That usually means it is relying on a personal guarantee, and a judgment against you could be enforced against your non-exempt personal assets.

Owning an LLC does not by itself make you liable for its debts (Business Organizations Code § 101.114; see am I personally liable for my business's debts?). Texas also protects a homestead and certain personal property of individuals under Property Code chapters 41 and 42, and a judgment lien does not attach to a homestead (Property Code § 52.001). Those protections belong to people, not to the company, which is why the company's bank accounts and receivables are usually the plaintiff's first target after a judgment.

If you dispute that you signed the guarantee, or that you are liable in the capacity in which you were sued, tell your lawyer immediately. Under Rule 93, those denials generally have to be verified by affidavit, and they need to be in place early.

Step 5: Gather These Documents

The citation and the complete petition, with every exhibit and affidavit attached.
The date, time and manner of service on each defendant, and who received the papers.
The contract the suit is based on: credit application, loan or financing agreement, lease, MCA agreement, purchase orders or terms and conditions.
Every personal guarantee, and any amendment, renewal or modification.
Invoices, statements and the account history, including payments, credits, returns and disputed charges.
Emails, texts and letters with the creditor about quality problems, disputes, payment arrangements or default.
For equipment or collateral: repossession notices, sale notices and any accounting of the sale.
For a lease: the date you vacated, key turnover records and anything showing whether the space was re-let.
The entity's Secretary of State and franchise tax status, and who its officers, managers and registered agent are.

Step 6: Preserve Defenses Before They Are Lost

Check for a sworn account. If the petition is a Rule 185 "suit on account" with an affidavit attached, contesting the balance generally requires a written denial under oath. See what is a verified (sworn) denial?
Plead affirmative defenses. Limitations, payment, offset and similar defenses must be raised in the Answer (which defenses have to be stated).
Think about counterclaims early. A counterclaim that arises from the same transaction can be filed even if it would otherwise be time-barred, but only if it is filed within 30 days after the Answer is due (Civil Practice and Remedies Code § 16.069).
Keep your records. Do not delete emails, accounting files or texts about the account. They are often the clearest evidence of credits and disputes.
Watch for a summary judgment motion. In county and district court, a response is due 21 days after the motion is filed for motions filed on or after March 1, 2026 (the new Rule 166a deadline).

Step 7: Approach the Plaintiff the Right Way

Once a suit is filed, the plaintiff is usually represented by a law firm, and communication should go through that firm. A few rules of thumb:

A phone call does not extend the deadline. An extension is reliable only if it is in writing, signed and filed with the court, or made in open court (Rule 11).
Do not admit the balance, promise a payment you cannot make or sign an agreed judgment without review. Statements in emails can become evidence.
Do not move money or assets out of the company to avoid the claim. Transfers made to defeat a creditor can create new liability for the people who receive them.
If settlement makes sense, it is usually negotiated after the Answer is on file, when the plaintiff knows the case will not end in a quick default.

What We Need From You to Evaluate the Case

When you contact us, have these answers ready: the court and cause number; who was served and when; whether the business is still operating; whether you or anyone else signed a guarantee; whether you dispute the debt, the amount, or only the timing of payment; and what outcome matters most to you, such as protecting personal assets, keeping the business running or ending the case quickly. Send photos or scans of the papers and we will confirm the deadlines in writing.

What It Costs

The case evaluation is free. Business cases have their own phased fee schedule, set by the amount the petition demands and paid one phase at a time; see business debt defense for how phases, trust deposits and refunds work.

Phase of the case	Up to $75,000	$75,001 – $150,000	$150,001 – $250,000
1. Answer through pre-discovery	$5,000	$7,500	$10,000
2. Written discovery	$3,500	$5,000	$10,000
3. Depositions and mediation	$5,000	$7,500	$15,000
4. Summary judgment and pretrial motions	$5,000	$8,500	$15,000
5. Trial (one day)	$10,000	$14,000	$25,000
Total through trial	$28,500	$42,500	$75,000
Each additional trial day	$3,500	$4,500	$7,500

By the amount in controversy: everything the petition demands (principal, interest, late charges and attorney's fees), excluding court costs. Over $250,000: quoted by an attorney.

Questions Business Owners Ask in the First Week

Can I file the company's Answer myself?

Only in justice court, where Rule 500.3(b) allows an owner, officer or employee to represent the entity. In county or district court, an LLC or corporation generally needs a licensed attorney.

The company has no money. Should we just let it default?

Not without advice. A default judgment against the company may still matter to guarantors, to future bank accounts and receivables, and to any claims against officers, such as liability for debts incurred while the entity's right to do business was forfeited for franchise tax reasons (Tax Code §§ 171.255, 171.2515).

Can I negotiate before the Answer is due?

Yes, but protect the deadline first. Negotiations frequently run past the answer date, and a default can be taken while the parties are still talking (can my business be sued for a debt?).

Do debt collection laws give my business any protection here?

Generally no. The FDCPA and the Texas Debt Collection Act apply to consumer debts, not debts incurred for a business purpose. Your protections come from the contract, the rules of civil procedure and Texas law on guarantees, leases and secured transactions.

Call Before the Deadline

Call or text (214) 945-2990, or submit the papers for a case evaluation. Read more in our debt lawsuit questions, or see the business debt defense overview for the kinds of claims we defend. If a judgment has already been signed, our post-judgment settlement page explains the next steps.

Sources

Attorney Advertising. This page provides general information, not legal advice. The outcome of any matter depends on its specific facts.

General information, not legal advice for your case.