Texas Debt Collection Laws & Statute of Limitations 2026
By Xavier C.H. · Editor and Researcher · May 27, 2026 · 14 min read
⚠️ Important: Xavier is not a licensed Texas attorney. This is educational content based on the Texas Civil Practice and Remedies Code, Texas Finance Code Chapter 392 (TDCA), and federal FDCPA. For your specific situation — especially if you have been sued — consult a licensed Texas debt defense attorney.
📌 The 30-second answer
Texas has the strongest debtor protections in the United States: 4-year SoL that does NOT restart from payments after expiration, total wage garnishment exemption for consumer debt, and an unlimited-value homestead exemption.
- Written and oral contracts: 4 years (TX CPRC § 16.004(a)(3))
- Credit cards, medical, auto, personal loans: 4 years
- Court judgments: 10 years, renewable (TX CPRC § 34.001)
- Clock restart by payment: NO after expiration (TX Fin. Code § 392.307(d))
- Wage garnishment for consumer debt: PROHIBITED (TX Const. Art. XVI § 28)
- Homestead exemption: Unlimited value (10/100/200 acres)
⚡ Are you being contacted about an old Texas debt?
Take our quiz to evaluate options including Statute of Limitations defense.
Take the 60-second quiz →Texas is widely considered the most debtor-friendly state in the United States. The combination of a 4-year Statute of Limitations, the unique rule that SoL does not restart from payments after expiration, a near-total prohibition on wage garnishment for consumer debt, and an unlimited-value homestead exemption makes Texas a uniquely protective jurisdiction for individuals dealing with old debt.
This guide covers the entire Texas debt collection framework: the Statute of Limitations under Texas Civil Practice and Remedies Code §§ 16.004 and 34.001, the Texas Debt Collection Act (Texas Finance Code Chapter 392), Texas's constitutional wage garnishment protection, and how all of this affects your strategy if you are dealing with old debt or being sued.
Statute of Limitations by debt type in Texas
| Debt type | Statute of Limitations | Legal source |
|---|---|---|
| Credit card debt | 4 years | TX CPRC § 16.004(a)(3) |
| Medical debt | 4 years | TX CPRC § 16.004(a)(3) |
| Personal loans | 4 years | TX CPRC § 16.004(a)(3) |
| Auto loans | 4 years | TX CPRC § 16.004(a)(3) |
| Private student loans | 4 years | TX CPRC § 16.004(a)(3) |
| Federal student loans | No SoL | Higher Education Technical Amendments 1991 |
| Oral debt agreements | 4 years | TX CPRC § 16.004(a)(3) |
| Open accounts | 4 years | TX CPRC § 16.004(a)(3) |
| Court judgments | 10 years, renewable | TX CPRC § 34.001 |
| Mortgage deficiency | 4 years from sale | TX CPRC § 16.004 |
| State taxes | 4 years from assessment | TX Tax Code § 111.201 |
| Federal taxes (IRS) | 10 years from assessment | 26 U.S.C. § 6502 |
Key note: Texas treats both written contracts AND oral contracts under the same 4-year period (unlike California where oral is 2 years). However, debt collectors strongly prefer written contracts because they are easier to prove in court. Credit card agreements signed at account opening qualify as written contracts.
Texas's unique no-restart protection
This is perhaps the single most important provision in Texas debt law and a major reason Texas attracts debt defense practice from other states.
🛡️ Texas Finance Code § 392.307(d):
"If an action to collect a consumer debt is barred under Subsection (c) [the SoL], the cause of action is NOT revived by a payment of the consumer debt, an oral or written reaffirmation of the consumer debt, or any other activity on the consumer debt."
Translation in plain English: once the 4-year SoL on your Texas consumer debt has expired, NOTHING you do can restart it — not making a small payment, not agreeing to a payment plan, not signing a settlement agreement, not even acknowledging in writing that you owe the debt. The cause of action is dead.
Compare this to California, where any payment — even one dollar — restarts the entire 4-year clock. The Texas rule is dramatically more protective.
Important nuance: Section 392.307 specifically applies to debt buyers (third parties who purchased the debt from the original creditor). The no-restart protection is most clearly established against debt buyers. For lawsuits filed by original creditors, traditional rules about acknowledgment and partial payment may still apply during the active SoL period. However, the §16.069 mandatory counterclaim period and general acknowledgment doctrine in Texas case law provide significant protection even against original creditors.
Practical implication: If a Texas debt collector contacts you about an old debt and you suspect the SoL has expired, you can verify the date of last payment and — if expired — even acknowledge the debt without restarting the SoL clock against debt buyers. Still, never make payments or sign agreements without first consulting a Texas debt defense attorney.
Wage garnishment exemption: Texas's strongest protection
The Texas Constitution provides one of the strongest wage protections in the United States. Article XVI Section 28 states that "current wages for personal service" are NEVER subject to garnishment for consumer debts.
| Debt type | Can Texas creditor garnish wages? |
|---|---|
| Credit card debt | ❌ NO |
| Medical debt | ❌ NO |
| Personal loans | ❌ NO |
| Auto loans (deficiency) | ❌ NO |
| Private student loans | ❌ NO |
| Federal student loans | ✅ YES (federal supremacy) |
| Federal taxes (IRS) | ✅ YES (federal supremacy) |
| Child support / alimony | ✅ YES (court order) |
| Court-ordered restitution | ✅ YES |
Critical warning: While your wages cannot be garnished from your employer for consumer debt, your bank account CAN be levied after a creditor obtains a judgment. Once your paycheck is deposited and becomes "bank funds," it loses its constitutional protection. This creates a tactical issue for Texas debtors with bank levy risk — some choose to use prepaid cards or alternative banking arrangements to limit exposure to bank account seizures after a judgment.
The Texas homestead exemption
Texas's homestead exemption is among the strongest in the United States. Your primary residence is essentially untouchable by most consumer debt collection.
- Urban homestead: Unlimited value on up to 10 acres of land
- Rural homestead — single adult: Unlimited value on up to 100 acres
- Rural homestead — family: Unlimited value on up to 200 acres
- Personal property: Up to 50,000 dollars single adult / 100,000 dollars family
Exceptions where homestead is NOT protected: mortgage liens (purchase money), property tax liens, federal tax liens, mechanic's liens for work on the homestead, owelty of partition liens, refinance liens (with statutory requirements), and reverse mortgage liens.
This combination of wage and homestead protections is one reason debt settlement strategies often work well in Texas — creditors face significant collection obstacles even after winning judgments, making them more willing to settle for cents on the dollar.
Texas Debt Collection Act (TDCA)
The Texas Debt Collection Act, codified in Texas Finance Code Chapter 392, provides consumer protections that overlap with and in some areas exceed the federal Fair Debt Collection Practices Act (FDCPA).
| Protection | Federal FDCPA | Texas TDCA |
|---|---|---|
| Applies to original creditors | ❌ No | ✅ Yes |
| Applies to debt collectors | ✅ Yes | ✅ Yes |
| Time-barred debt restart prohibition | Limited | ✅ Strong (§ 392.307) |
| Required time-barred debt disclosure | Limited | ✅ Yes (mandatory written notice) |
| Prohibits harassment, threats | ✅ Yes | ✅ Yes |
| Statutory damages per violation | Up to $1,000 | $100 minimum (no cap) |
| Attorney fees | ✅ Yes | ✅ Yes (prevailing consumer) |
| Legal source | 15 U.S.C. § 1692 | TX Fin. Code Ch. 392 |
The TDCA has been actively enforced by both the Texas Attorney General's office and through private consumer lawsuits. Several Texas debt defense attorneys specialize specifically in TDCA litigation and take cases on contingency.
How to respond if sued in Texas (6 steps)
Texas courts will NOT automatically dismiss time-barred lawsuits. You must respond and affirmatively raise the Statute of Limitations defense or risk a default judgment.
📋 6-step response protocol
- Calendar the answer deadline immediately. When you are served with a Citation and Petition in Texas, you have until the Monday following 20 days after service to file your Answer. Missing this deadline = default judgment.
- Verify the debt is yours and the SoL status. Check the date of your last payment. If more than 4 years have passed, the debt is likely time-barred under TX CPRC § 16.004. Under TX Fin. Code § 392.307(d), the clock does NOT restart from any payments after expiration.
- File your Answer with the Statute of Limitations defense. Use the Texas Justice Court answer form (debts under 20,000 dollars) or District Court answer form for larger debts. Raise: "The plaintiff's claim is barred by the Statute of Limitations under TX CPRC § 16.004(a)(3)."
- Demand documentation through discovery. Texas Rule of Civil Procedure 194 allows you to demand: original signed credit agreement, complete itemized payment history, chain of title documents, and proof of last payment date. Many debt buyers cannot produce these documents, leading to case dismissal.
- Consider TDCA counterclaims. Under TX Fin. Code § 392.403, you may have counterclaims for TDCA violations: filing on time-barred debt, misrepresenting amount, contacting outside permitted hours, threatening unlawful actions. Each violation = at least 100 dollars statutory damages plus actual damages and attorney fees.
- Attend trial or negotiate settlement. The plaintiff bears burden of proving every element including timing. If they cannot prove last payment was within 4 years, you should prevail. Many cases settle pre-trial at 10-30 cents on the dollar.
Texas vs other major states
| Protection | Texas | California | Florida |
|---|---|---|---|
| SoL on credit card debt | 4 years | 4 years | 5 years (4 yr open account) |
| SoL restart from payment after expiry | ❌ No | ✅ Yes | ✅ Yes |
| Wage garnishment for consumer debt | ❌ Prohibited | ✅ Allowed (25%) | ✅ Allowed (head of household exempt) |
| Homestead exemption | Unlimited value | Limited (~$700K) | Unlimited (½ acre urban) |
| State debt collection law | TDCA (Ch 392) | Rosenthal Act | FCCPA |
| Applies to original creditors | ✅ Yes | ✅ Yes | ✅ Yes |
For full state-specific guidance, see our California debt collection laws guide or Florida debt collection laws guide.
Finding legal help in Texas
| Resource | Best for | Contact |
|---|---|---|
| TexasLawHelp.org | Free legal forms, instructions, online tools | texaslawhelp.org |
| State Bar of Texas LRS | Find consumer attorneys statewide | texasbar.com |
| Texas Legal Services Center | Low-income debtors statewide | tlsc.org |
| Lone Star Legal Aid | Texas low-income (East Texas, Houston area) | lonestarlegal.org |
| Legal Aid of NorthWest Texas | Low-income (Dallas, Fort Worth, West Texas) | lanwt.org |
| RPC Defender | Texas consumer debt defense | rpcdefender.com |
| NACA | FDCPA/TDCA litigation attorneys | consumeradvocates.org |
Many Texas consumer protection attorneys take debt defense cases on contingency or no-upfront-fee basis. They earn fees by winning TDCA/FDCPA damages against collectors or by saving you the judgment amount.
Frequently asked questions
What is the Statute of Limitations on debt in Texas?
In Texas, the Statute of Limitations on most consumer debt is 4 years for both written and oral contracts under Texas Civil Practice and Remedies Code Section 16.004(a)(3). This includes credit cards, medical debt, auto loans, and personal loans. The clock starts on the date of last payment or account default. Court judgments are valid for 10 years and can be renewed under Texas Civil Practice and Remedies Code Section 34.001.
Does the Texas Statute of Limitations restart if I make a payment?
NO. This is one of Texas's strongest debtor protections. Under Texas Finance Code Section 392.307(d), once the 4-year Statute of Limitations has expired, the cause of action is NOT revived by partial payment, oral reaffirmation, written reaffirmation, or any other activity on the debt. This makes Texas dramatically more debtor-friendly than states like California where any payment restarts the clock. Note: this protection applies to debt buyers under §392.307; for original creditors, traditional restart rules may apply during the active SoL period.
Can Texas creditors garnish my wages for credit card debt?
Generally NO. The Texas Constitution Article XVI Section 28 prohibits wage garnishment for most consumer debts including credit cards, medical bills, personal loans, and auto loans. This makes Texas one of only 4 states with this strong protection. Exceptions where wages CAN be garnished: child support, federal student loans, federal taxes (IRS), and court-ordered fines. Note: even though wages cannot be garnished, bank accounts CAN be levied after a judgment, so direct deposit creates risk.
Is my Texas home protected from debt collectors?
Yes, Texas has one of the strongest homestead exemptions in the United States. Your primary residence is fully exempt from forced sale for most consumer debt collection — unlimited dollar value for up to 10 acres in urban areas or 100 acres rural for an individual (200 acres for families). The homestead exemption does NOT protect against: mortgage liens, property tax liens, federal tax liens, mechanic's liens for home improvements, or owelty of partition liens. This protection is one reason debt settlement is often preferable to bankruptcy for Texas homeowners.
What is the Texas Debt Collection Act and how does it protect me?
The Texas Debt Collection Act (TDCA) under Texas Finance Code Chapter 392 provides consumer protections similar to and in some ways stronger than the federal FDCPA. Key differences: (1) TDCA applies to BOTH original creditors and third-party collectors, while FDCPA only covers third-party collectors; (2) Statutory damages of at least 100 dollars per violation; (3) Cannot call before 8 AM or after 9 PM Texas time; (4) Must provide validation of debt upon written request; (5) Cannot threaten violence, criminal prosecution, or use obscene language; (6) Cannot contact you at work if you've requested they stop. Violations are enforced by the Texas Attorney General and through private lawsuits.
How do I respond if I am sued for old debt in Texas?
Critical: Texas courts will NOT automatically dismiss time-barred lawsuits. You must respond and affirmatively raise the Statute of Limitations defense. You typically have until the Monday following 20 days after being served to file an Answer with the court. Use the Texas Justice Court answer form for cases under 20,000 dollars. Specifically state: 'The plaintiff's claim is barred by the Statute of Limitations under Texas Civil Practice and Remedies Code Section 16.004(a)(3).' Also demand the collector produce: signed credit agreement, full payment history, chain of title proving they own the debt. Many Texas debt defense attorneys offer free consultations.
Can debt collectors sue me in Texas after the Statute of Limitations expires?
Under Texas Finance Code Section 392.307, debt buyers are specifically prohibited from filing lawsuits on time-barred debt. They must also include a specific written disclosure in their first communication if the SoL has expired. The federal Fair Debt Collection Practices Act also prohibits time-barred lawsuits. However, some collectors still file lawsuits hoping debtors will not respond. If you do not respond within the answer deadline, the court will issue a default judgment against you regardless of how old the debt is — this is the single biggest mistake Texas debtors make.
What is the Statute of Limitations on judgments in Texas?
Court judgments in Texas are valid for 10 years under Texas Civil Practice and Remedies Code Section 34.001. They can be renewed for an additional 10 years if the creditor files a renewal action before the original expiration. During the 10 years, the creditor can attempt to collect through bank account levies, property liens (excluding homestead), and other post-judgment remedies. Judgments accrue post-judgment interest at the rate of 5 percentage points above the prime rate, with a minimum of 5 percent and maximum of 15 percent annually.
Are federal student loans subject to the Texas Statute of Limitations?
No. Federal student loans (Direct Loans, FFEL Program loans, Perkins Loans) have NO statute of limitations under federal law per the Higher Education Technical Amendments of 1991. They can be collected indefinitely through wage garnishment (one of the few exceptions to Texas's wage garnishment protection), tax refund offsets, and Social Security garnishment. Private student loans are subject to Texas's 4-year SoL like other written contracts. Federal student loan rehabilitation or consolidation can resolve default status.
What can debt collectors NOT do in Texas?
Under the Texas Debt Collection Act and federal FDCPA, debt collectors in Texas cannot: (1) Use threats of violence or criminal action; (2) Use obscene or profane language; (3) Misrepresent the amount, character, or legal status of the debt; (4) Threaten to take action they cannot legally take (like garnishing your wages for credit card debt); (5) Call before 8 AM or after 9 PM Texas time; (6) Call you at work after you've told them to stop; (7) Falsely claim to be attorneys or law enforcement; (8) Communicate with third parties about your debt except for specific narrow purposes. Violations can result in statutory damages of at least 100 dollars per violation plus actual damages and attorney fees.
Should I hire a Texas debt defense attorney if sued?
Strongly recommended for any debt over 5,000-10,000 dollars, especially if SoL, FDCPA, or TDCA defenses may apply. Many Texas consumer attorneys take debt defense cases on contingency or with no upfront fees — they collect from TDCA/FDCPA violations or from saving you the judgment amount. Resources: State Bar of Texas Lawyer Referral Service (texasbar.com), Texas Legal Services Center for low-income debtors, RPC Defender (Texas debt defense organization), Texas Civil Rights Project, and the National Association of Consumer Advocates (consumeradvocates.org). For Justice Court cases (under 20,000 dollars), you can also self-represent using TexasLawHelp.org free forms.
Related guides
- New York Debt Collection Laws & SoL 2026
- Pennsylvania Debt Collection Laws & SoL 2026
- Illinois Debt Collection Laws & SoL 2026
- Free Quiz: Should you settle, consolidate, or file bankruptcy?
- California Debt Collection Laws & SoL 2026
- Florida Debt Collection Laws & SoL 2026
- Form 982 Insolvency Worksheet
- The 1099-C Tax Bomb After Settlement
- Settlement vs Consolidation vs Bankruptcy
Disclaimer: This article is educational content based on the Texas Civil Practice and Remedies Code, Texas Finance Code Chapter 392 (Texas Debt Collection Act), federal FDCPA (15 U.S.C. § 1692), and Texas court decisions. It is not legal advice. The author is not a licensed Texas attorney. Texas debt law has nuances depending on the specific facts of your case, the type of debt, the originator of the debt, and the timing of events. For your specific situation — especially if you have been sued — consult a licensed Texas debt defense attorney before taking action.