Statute of Limitations in Texas for Debt

Texas residents who are struggling with debt may not be happy about their situation, but they can be thankful they live in Texas.  Texas has some of the most consumer friendly protections in the country, and this applies to wage garnishments, judgments, and collection practices in general.   Often the biggest question people ask is this.  Can wages be garnished in Texas?  This article will discuss the statute of limitations in Texas, and some of the implications for consumers.  I’m a Houston bankruptcy attorney, but I serve clients all over the state. For the record, I talk most people out of filing for bankruptcy in view of a better alternative.

It is stressful to fall behind on paying your bills, and the reminders of accumulating debts against you arrive every day in the mail.  For this reason you may be curious to know what your rights are.  The logic provides that at some point creditors are prevented from enforcing the debt.  This is true but there are some caveats you’ll need to be aware of.

So what is the Statute of Limitations in Texas for Debt?

It varies by state but in general the limits are about three to six years from the date of your last payment.  In Texas, the time of limitation is calculated at four years from the date of the last payment.  For example, if your last payment was on January 1, 2010, then the limitation would expire on January 1, 2014.

The four years recommences if you slip up and make a payment of any size before the four years elapse.  This is one tactic of creditors.  They will encourage you to make even a small payment to give themselves more time under the statute.  This is just one example of why you need a trusted adviser on your side to help you steer clear of pitfalls and traps.

The good news for Texas residents is this.  For those who wish to pay their debts, but find themselves simply unable to do so, collection laws in Texas are extremely limited due to our state’s collection practices act.  Our act is even more consumer friendly than the national Fair Debt Collection Practices Act.  (FDCPA.)  It provides restrictive measures that treat the original debtor and the collector under the same light.  What’s the bottom line?  Texas is one of a few states that treat holders of debt, that is, those collecting their own debt, the same as a company that is hired to collect a debt.  This severely restricts the ability of creditors to collect their debts and garnish wages.  (For more details regarding that, please read this article:  Can wages be garnished in Texas?)

So what should a Texas consumer do when they find themselves within the four-year statute of limitation in Texas for debt?  While Texas has friendly consumer protection laws, there are some things you will definitely want to be aware of in the event that your creditor files suit & obtains a civil judgment against you.

3 Steps to Protect You and Your Family from Creditors:

1. Be aware of the cash value of assets in your name (including all bank accounts).

2. Calculate the value of your real property and note the names that are on title.

3. Speak with a knowledgeable expert who doesn’t have a vested interest in selling you bankruptcy for protection.

In all of my years of practice, I’ve been amazed at how many consumers rush to file bankruptcy in Texas without realizing consumer protections are already in place to shield them.  It’s not their fault, as most Texas bankruptcy attorneys don’t make money by educating the general public on their free options outside of Chapter 7 or Chapter 13.  That’s why my law practice is completely different.  Experience has provided me the knowledge of what creditors can and cannot do when it comes to collecting their debts and judgements in Texas against you.  Although I am a Houston bankruptcy attorney who helps consumers statewide, I rarely recommend filing for bankruptcy.  What do I offer instead?  I call it my alternative plan.

I don’t go into great detail on my website articles because the creditors I protect consumers from don’t need to know my secret weapons.  That said, I’m glad to spend time talking with you about your situation by phone free of charge so you can discover a clear strategy out of financial turmoil for you and your family.  If you are curious about the statute of limitations in Texas for debt, it’s plain that you need some helpful advice regarding your debt relief plan.  There is extra hope for you if you are living in Texas, but it still requires you to take action so please call me today.

Receive your free, confidential phone consultation today. 1-888-982-8609

by Jed Shaw

Help Others, Share!

    Tags: judgements in texas, Statute of Limitations in Texas for Debt