Bankruptcy Section
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What is a suit on sworn account?
In Texas, a suit on sworn account is considered a procedural device (Rule 185 of the Texas Rules) to pursue a breach of contract claim. If the plaintiff pleads under this rule, it has shown a prima facie right of recovery if the defendant fails to answer the suit with a verified denial. The underlying claims must be for goods or services provided by the plaintiff for the benefit of the defendant. Credit card lawsuits cannot be brought under a sworn account theory of recovery. A third party debt buyer also cannot bring a claim under Rule 185. However, if a credit card is issued by a supplier of goods or services and such is purchased using the credit card, suit can likely be brought in that circumstance.
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