To be one of the best debt settlement companies for business debt in Dallas, a provider should have access to Texas-licensed counsel who know the Dallas County court your funder is suing you in and can act promptly to defend your suit, respond to turnover motions and bank garnishments, and negotiate a release, dismissal and satisfaction of judgment.
We can't rank Dallas providers on outcome data, so we list here the Dallas County courts and Texas law your provider needs to handle. For statewide law, including your homestead exemption and the 2025 ban on confessions of judgment in sales-based financing, see our guide to business debt settlement under Texas law.
What court in Dallas County will my MCA funder sue me in?
The funder will likely sue in one of the 13 civil district courts in Dallas County or the five County Courts at Law. Elsewhere in Texas, statutory county courts are limited to civil cases up to $250,000 under Government Code 25.0003, but Dallas County's courts at law have concurrent jurisdiction with the District Courts regardless of the amount in controversy under Government Code 25.0592. So even a $400,000 advance may be sued on in a County Court at Law.
If the amount is no more than $20,000 exclusive of interest, your funder may use a justice court under Government Code 27.031. Many merchant cash advance contracts require suit in New York, Utah, Virginia, Connecticut or another state.
Can my funder take my case to the new Texas Business Court in Dallas?
It's unlikely, since the amount in controversy is likely far less than the court's $5 million floor. The court's First Division covers the First Administrative Judicial Region, which includes Dallas County, and is already operational with two judges, the Hon. Andrea K. Bouressa and the Hon. Bill Whitehill. Its jurisdiction over contract and "qualified transaction" cases under Government Code 25A.004(d) originally required an amount in controversy over $10 million, and HB 40 (2025) lowered that to over $5 million.
What can my funder do in Dallas County with a judgment obtained in New York?
Your funder can file an authenticated copy of the New York judgment in any Dallas court of competent jurisdiction, and it will be subject to the same procedures and defenses as a judgment obtained in Texas to reopen, vacate, stay or enforce the judgment under Civil Practice and Remedies Code 35.003. You must be promptly mailed notice of the filing under 35.004. If an appeal is pending or the judgment has been stayed and you post security, 35.006 requires the Texas court to stay enforcement.
How can a Texas judgment reach your Dallas bank accounts and receivables?
The two main collection methods are to garnish your bank accounts or to get an order for you to "turn over" accounts or receivables. Under Civil Practice and Remedies Code 63.001, a judgment creditor who swears you lack enough Texas property subject to execution may garnish, and garnishment is also available before judgment. A writ binds your bank only if delivered to its registered agent address under Finance Code 59.008. To stop the bank from complying, you need your own restraining order or injunction.
A turnover order under Civil Practice and Remedies Code 31.002 can require you to hand over nonexempt property and records, or the court can appoint a receiver to take and sell it. It reaches "present or future rights to property," so card receivables and customer payments are targets. Plus, you will owe reasonable attorney's fees on top of the judgment, so it's cheaper to settle before a turnover motion than after one. Our Fort Worth guide covers receiverships in Tarrant County.
What should you demand from business debt settlement companies in Dallas?
Ask any provider to explain its plan stage by stage, because each stage has its own Dallas County procedure. Providers may advertise fees of 15, 20 or 25% of savings or enrolled debt, but what matters is how well they answer at each stage:
| Stage of the lawsuit | What to ask them |
|---|
| Before the funder files suit | Who negotiates with the funder? If you're sued, will a Texas-licensed attorney file your answer? |
| After you are served in Dallas County | Which court is the case in? Will your answer be filed by 10:00 a.m. on the Monday after 20 days from service, the deadline after which a default judgment can be taken under Rule 99(b) of the Texas Rules of Civil Procedure? |
| After the funder files a New York judgment in Dallas | How will they review the filing? Is a stay under 35.006 realistic? |
| After the funder garnishes your bank account | How fast will they get an order and negotiate a release? |
| After the funder files a turnover motion | How will they respond before a receiver is appointed and fees accrue? |
| When you settle and sign the settlement agreement | Does the release name you as guarantor as well as the LLC? Is there a written garnishment release, a dismissal, and a satisfaction of judgment filed with the clerk, with no agreed judgment tucked in? |
Consumer debt settlement programs won't help you respond to a lawsuit. They usually put consumers on 24 to 48 month plans with minimum monthly deposits. If the funder's registration under the new Texas sales-based financing law comes up in negotiation, our Austin guide explains how to check it.
Frequently Asked Questions
Can merchant cash advance companies file a confession of judgment in Texas?
Not for sales-based financing under the new Texas law. Texas Finance Code 398.055 says that any such contract with a confession of judgment is void and unenforceable, and it went into effect on September 1, 2025.
Can merchant cash advance companies garnish my bank account in Dallas before they win the lawsuit?
Yes, if they are suing you for a debt and swear that it is just, due and unpaid and that you don't have enough Texas property subject to execution to pay it. See Tex. Civ. Prac. & Rem. Code 63.001.
Can merchant cash advance companies take my LLC if they get a judgment against me?
If the judgment is against you as a personal guarantor, their exclusive remedy against your LLC interest is a charging order under Tex. Bus. Orgs. Code 101.112. But a judgment against the LLC, usually the merchant in the agreement, reaches the LLC's accounts and receivables.
How long do judgments last in Texas?
Judgments in Texas go dormant if no execution is issued on the judgment within ten years of the date the court rendered the judgment. See Tex. Civ. Prac. & Rem. Code 34.001. When you settle, make sure a satisfaction of judgment is filed so the court record shows you paid and were released.