How it works Services About Your Rights Cost Calculator FAQ Resources Client results Free consultation
State Guide · Texas

Texas debt collection laws & statute of limitations

In Texas, collectors generally have 4 years to sue on most debts, including credit cards (Tex. Civ. Prac. & Rem. Code § 16.004). After that, a lawsuit can be defeated if you raise the defense. Texas does not allow wage garnishment for consumer debt — a constitutional protection — though bank accounts can be levied after a judgment. Federal FDCPA protections apply on top.

By the Providence Financial Solutions Consumer Rights Team

Texas is one of the most debtor-protective states in the country — shorter deadlines to sue, a constitutional ban on wage garnishment for consumer debt, and a state collection law that reaches even your original creditor. Collectors count on Texans not knowing these rules. This guide lays them out, with the statutes cited so you can verify every claim.

Statute of limitations by debt type in Texas

Texas gives collectors 4 years to sue on most consumer debts. Texas Civil Practice & Remedies Code § 16.004 covers suits on a debt, and the residual 4-year rule in § 16.051 catches most contract claims that don't fit elsewhere — so written contracts, credit cards, oral agreements, and open accounts all land at 4 years.

Debt typeTime limitTexas statute
Written contract4 yearsTex. Civ. Prac. & Rem. Code § 16.004 / § 16.051
Credit card debt4 yearsTex. Civ. Prac. & Rem. Code § 16.004
Oral agreement4 yearsTex. Civ. Prac. & Rem. Code § 16.004 / § 16.051
Open account / store account4 yearsTex. Civ. Prac. & Rem. Code § 16.004(a)(3)
Promissory note4 years (6 for some negotiable notes)§ 16.004; Tex. Bus. & Com. Code § 3.118

The clock generally starts at default — usually the first missed payment that was never caught up. After 4 years the debt is "time-barred": collectors can still ask you to pay, but they cannot win a lawsuit if you show up and raise the statute of limitations. It is an affirmative defense, which means the court will not apply it for you. If you ignore the suit, the collector can take a default judgment even on a time-barred debt.

Texas also added a rule specifically for debt buyers — companies that purchase charged-off debt. Under Texas Finance Code § 392.307 (added in 2019), a debt buyer may not file suit or start arbitration on a time-barred debt at all, and neither a partial payment nor any other activity revives the limitations period on debt-buyer accounts. If a debt buyer sues you on an old account, that lawsuit itself may violate Texas law — and an attorney can challenge it.

Can a collector garnish wages in Texas?

No — not for consumer debt. Article 16, Section 28 of the Texas Constitution prohibits garnishment of current wages except for court-ordered child support and spousal maintenance. Federal law carves out a few additional exceptions (unpaid taxes, federal student loans), but a credit card company, personal-loan lender, medical provider, or debt buyer cannot take your paycheck in Texas — even with a judgment.

That protection has limits worth understanding:

Because so much is exempt, many Texans with judgments against them are effectively "judgment proof." Collectors know this too — which is why some rely on pressure and misinformation instead of legal remedies. That's where your rights come in.

The trap: don't restart the clock

Be careful what you sign — and what you pay. Under Tex. Civ. Prac. & Rem. Code § 16.065, a written acknowledgment of an old debt, signed by you, can revive an expired limitations period and give the collector a fresh window to sue.

Texas is more protective than most states on payments: once the period has run, a partial payment alone generally does not restart the clock, and for debt-buyer accounts, Finance Code § 392.307 says payments never revive a time-barred debt. But a payment made before the deadline can affect when default is measured, and signing a new agreement or "payment plan" letter can restart everything.

Before paying anything — or signing anything — on an account that's been sitting for years, get the dates checked. An attorney can review whether the debt is time-barred and whether you legally owe it at all, at no upfront cost to you.

Your rights in Texas

Two layers of law protect you. The federal Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. § 1692 et seq.) applies to third-party collectors and debt buyers. Under it, collectors:

Each FDCPA violation can be worth up to $1,000 to you in statutory damages, and the law can require the collector to pay the attorney's fees.

Texas adds the Texas Debt Collection Act — Finance Code Chapter 392 — which mirrors the FDCPA and goes further: it applies to anyone collecting a consumer debt, including your original creditor, not just third-party collectors. It bans threats of violence, criminal accusations, misrepresenting the amount or status of a debt, and abusive collection tactics, and it allows consumers to sue for injunctive relief and actual damages, with attorney's fees available (§ 392.403). Third-party collection agencies operating in Texas must also post a bond with the Secretary of State (§ 392.101).

A collector who threatens to garnish your Texas wages over a credit card, or sues on a 5-year-old debt, may have violated federal or state law — and those violations can become leverage in your favor. Start with our complete guide to your rights to see how the federal protections work.

Laws current as of July 2026 — statutes change; an attorney can confirm what applies to your situation. This page is general information, not legal advice.

$10,000 or more in unsecured debt and the calls won't stop?

Find out whether your debt is time-barred, whether the collector broke the law, and what your options are. The review is free.

Get a Free Case Review →

Not a law firm. Providence Financial Solutions connects consumers with independent consumer-rights attorneys. Results vary. Not available in GA, ID, ND.

Texas Debt Collection — Frequently Asked Questions
How long can I be sued for a debt in Texas?

Generally 4 years. Tex. Civ. Prac. & Rem. Code § 16.004 sets a 4-year limitations period for suits on a debt, covering most consumer debt — credit cards, written contracts, oral agreements, and open accounts. The clock generally starts at default, usually your first missed payment that was never brought current.

What happens after the statute of limitations passes?

Collectors can still ask you to pay, but they cannot win a lawsuit if you raise the statute of limitations as a defense. It's an affirmative defense — you must respond and raise it, or the court can enter a default judgment anyway. For debt buyers, Texas Finance Code § 392.307 goes further: a debt buyer may not sue or start arbitration on a time-barred debt at all.

Can a collector garnish my wages in Texas?

No — not for consumer debt. Article 16, Section 28 of the Texas Constitution prohibits wage garnishment except for child support and spousal maintenance (plus federal exceptions like taxes and student loans). Even with a judgment, a credit card company cannot take your paycheck. But once wages hit your bank account, a judgment creditor can seek to freeze and levy the account.

Does making a payment restart the clock in Texas?

Texas is more protective than most states. Under § 16.065, reviving an expired debt requires a written acknowledgment signed by you — a partial payment alone generally doesn't restart the clock once the period has run. And under Finance Code § 392.307, payments never revive a time-barred debt held by a debt buyer. Still, be careful what you sign, and get old debts reviewed before paying anything.

Does the Texas Debt Collection Act cover my original creditor?

Yes. Unlike the federal FDCPA, which mainly covers third-party collectors, the Texas Debt Collection Act (Finance Code Chapter 392) applies to anyone collecting a consumer debt — including the original credit card company or lender. It bans threats, harassment, and misrepresentations, and lets consumers sue for injunctive relief and actual damages, with attorney's fees available.

Can a collector take my house or car in Texas?

Texas has strong exemptions. Your homestead is protected from most creditor claims (Property Code ch. 41), and personal property up to $100,000 for a family ($50,000 for a single adult) — including one vehicle per licensed driver — is exempt (Property Code ch. 42). That's why many Texans with judgments against them are effectively "judgment proof."