I Was Served With a Property Tax Lawsuit in Texas — Now What?
Receiving a citation that says you’ve been sued over unpaid property taxes can be alarming — but it’s important to understand what it actually means and what your options are. Being served with a lawsuit is a formal step in the delinquent tax collection process, not the final word on what happens to your property. In this guide, we’ll explain what the citation means, what typically happens next, and how property owners can respond. For expert advice and loan quotes related to property taxes, contact American Finance and Investment Co., Inc. (AFIC).
Why Was I Served With a Lawsuit?
When a property tax account remains delinquent for an extended period, the taxing unit (often through a contracted collection law firm) may file a lawsuit against the property owner to recover the amount owed. Being “served” simply means you’ve officially been notified of this lawsuit through a citation, which is typically delivered in person or by mail.
This step usually doesn’t come as a complete surprise — it generally follows months of accumulating penalties and interest after the original January 31st deadline, and often after the July 1st collection penalty has already been added to the balance.
What Does the Citation Mean?
The citation is a legal document informing you that a lawsuit has been filed and that you have a limited window of time — typically around 20 days — to file a written response (called an “answer”) with the court. The lawsuit itself is generally seeking a judgment confirming the amount owed, including taxes, penalties, interest, and attorney’s fees.
It’s important not to ignore the citation. If no response is filed, the court may enter a default judgment against the property owner.
What Happens If a Judgment Is Entered?
If the court enters a judgment in favor of the taxing unit, the judgment confirms the total amount owed and authorizes the next phase of the collection process — which can ultimately include an order for the property to be sold at a tax foreclosure sale if the debt remains unpaid.
However, a judgment is not the same as an immediate loss of the property. There are typically still steps — and time — between a judgment and an actual sale.
What Are My Options After Being Served?
Property owners who have been served with a property tax lawsuit generally have several paths forward:
- Pay the full amount owed, including taxes, penalties, interest, and any attorney’s fees, to resolve the lawsuit
- Contact the attorney handling the case to discuss the account and any available arrangements
- Consult an attorney for guidance on responding to the lawsuit itself
- Use a property tax loan to pay off the delinquent balance in full and replace it with a structured monthly payment, which can resolve the underlying debt that the lawsuit is based on
Manage Your Property Taxes with AFIC
Being served with a lawsuit can feel like a turning point — but it’s also a clear signal that resolving the underlying tax debt is the most direct way to address the situation. A property tax loan pays the taxing authority the full delinquent amount, which can resolve the debt at the center of the lawsuit and stop further penalties and legal action from accruing.
American Finance & Investment Co., Inc. (AFIC) has helped Texas property owners navigate situations like this for over 80 years. See if you qualify for a property tax loan.
Frequently Asked Questions
It means a taxing unit has filed a lawsuit against you for delinquent property taxes, and you’ve officially received a citation notifying you of the suit. You typically have a limited window — often around 20 days — to file a response with the court.
If no response is filed, the court may enter a default judgment against you for the amount owed, including taxes, penalties, interest, and attorney’s fees.
Not immediately. A lawsuit is a step toward a possible judgment, and a judgment is a step toward a possible foreclosure sale — but there are typically additional steps and time involved before a property is actually sold.
Yes. Paying the delinquent amount in full, including penalties, interest, and any attorney’s fees, can resolve the lawsuit at any stage before a final sale occurs.
A property tax loan pays the taxing authority the full delinquent balance, which addresses the debt the lawsuit is based on and can stop further penalties and legal action from accruing.
