Texas debt statute of limitations

Texas limitation periods by type of debt

Texas applies a uniform 4-year period to debt (§ 16.004(a)(3)); a signed written acknowledgment (§ 16.065) is needed to restart the clock.

What the Texas statute says

“(a) A person must bring suit on the following actions not later than four years after the day the cause of action accrues: (1) specific performance of a contract for the conveyance of real property; (2) penalty or damages on the penal clause of a bond to convey real property; (3) debt;”
Tex. Civ. Prac. & Rem. Code § 16.004(a)(3)

“(c) A person must bring suit against his partner for a settlement of partnership accounts, and must bring an action on an open or stated account, or on a mutual and current account concerning the trade of merchandise between merchants or their agents or factors, not later than four years after the day that the cause of action accrues.”
Tex. Civ. Prac. & Rem. Code § 16.004(c)

Does paying restart the clock in Texas?

A debt buyer cannot revive a time-barred consumer debt through a payment, a promise to pay, or any other activity on it (Tex. Fin. Code § 392.307(d)).

“An acknowledgment of the justness of a claim that appears to be barred by limitations is not admissible in evidence to defeat the law of limitations if made after the time that the claim is due unless the acknowledgment is in writing and is signed by the party to be charged.”
Tex. Civ. Prac. & Rem. Code § 16.065

In Texas, when a debt buyer's suit is barred under § 392.307(c), a payment, an oral or written reaffirmation, or other activity on the debt does not revive the claim.

“(d) If an action to collect a consumer debt is barred under Subsection (c), 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.”
Tex. Fin. Code § 392.307(d)

Texas’s own debt collection law

Texas Finance Code chapter 392 (debt collection) regulates debt collection practices for consumer debts, defined as obligations primarily for personal, family, or household purposes.

“(5) "Debt collection" means an action, conduct, or practice in collecting, or in soliciting for collection, consumer debts that are due or alleged to be due a creditor.”
Tex. Fin. Code ch. 392, § 392.001(5)

If a creditor wins a judgment in Texas

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Texas rules take over.

How long a judgment lasts

In Texas, a judgment becomes dormant if no writ of execution is issued within 10 years after it is rendered (or within 10 years after the previous writ); a dormant judgment cannot be executed on unless it is revived.

“If a writ of execution is not issued within 10 years after the rendition of a judgment of a court of record or a justice court, the judgment is dormant and execution may not be issued on the judgment unless it is revived.”
Tex. Civ. Prac. & Rem. Code § 34.001

Wage garnishment

Texas exempts current wages for personal services from seizure, except to enforce court-ordered child support, so ordinary consumer creditors cannot garnish current wages.

“The following personal property is exempt from seizure and is not included in the aggregate limitations prescribed by Subsection (a): (1) current wages for personal services, except for the enforcement of court-ordered child support payments;”
Tex. Prop. Code § 42.001(b)(1)

Small claims court

Texas small claims cases are heard in justice court, which has jurisdiction over civil matters where the amount in controversy is not more than $20,000, excluding interest.

“the justice court has original jurisdiction of: (1) civil matters in which exclusive jurisdiction is not in the district or county court and in which the amount in controversy is not more than $20,000, exclusive of interest;”
Tex. Gov't Code § 27.031(a)(1); see § 27.060

Time-barred debt in Texas

In Texas, a debt buyer may not sue or start arbitration to collect a consumer debt after the applicable limitations period has expired.

“(c) A debt buyer may not, directly or indirectly, commence an action against or initiate arbitration with a consumer to collect a consumer debt after the expiration of the applicable limitations period provided by Section 16.004, Civil Practice and Remedies Code, or Section 3.118, Business & Commerce Code.”
Tex. Fin. Code § 392.307(c)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Texas treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Texas?

4 years for credit-card debt and 4 years on a written contract, under Tex. Civ. Prac. & Rem. Code § 16.004. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Texas?

A debt buyer cannot revive a time-barred consumer debt through a payment, a promise to pay, or any other activity on it (Tex. Fin. Code § 392.307(d)).

Does Texas have its own debt collection law?

Texas Finance Code chapter 392 (debt collection) regulates debt collection practices for consumer debts, defined as obligations primarily for personal, family, or household purposes. (Tex. Fin. Code ch. 392, § 392.001(5)).

How long does a court judgment last in Texas?

In Texas, a judgment becomes dormant if no writ of execution is issued within 10 years after it is rendered (or within 10 years after the previous writ); a dormant judgment cannot be executed on unless it is revived. (Tex. Civ. Prac. & Rem. Code § 34.001).

How much of my pay can be garnished in Texas?

Texas exempts current wages for personal services from seizure, except to enforce court-ordered child support, so ordinary consumer creditors cannot garnish current wages. (Tex. Prop. Code § 42.001(b)(1)).

What if I am sued on an old debt in Texas?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.