Texas Statute of Limitations on Debt: What You Need to Know
Texas gives you a four-year statute of limitations to protect you from old debt lawsuits. Collectors can still sue after the statute expires, but you must raise this defense in your Answer. Missing Texas court deadlines or filing incorrectly can cost you the case and thousands of dollars.
Answer Your LawsuitTexas has one of the fastest-growing economies in the country. Yet debt continues to burden many families across the state. If you’ve been sued over old debt, you need to understand your rights. The statute of limitations might be your strongest defense.
What Is the Statute of Limitations on Debt in Texas?
The statute of limitations on debt is four years in Texas. After four years pass, creditors lose their legal right to sue you. The table below shows the statute for different debt types.
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Start Your Answer| Debt Type | Statute of Limitations |
|---|---|
| Credit Card | 4 years |
| Medical | 4 years |
| Auto Loan | 4 years |
| Student Loan | 4 years |
| Mortgage | 4 years |
| Personal Loan | 4 years |
| Judgment | 10 years |
The statute of limitations sets a deadline for debt collectors to sue you. Once the deadline passes, collectors can’t legally take you to court. But they can still ask you to pay.
Many collectors will sue you even after the statute expires. You must raise the expired statute as a defense in court. If you don’t mention it, you could lose your case.
When Does the Clock Start?
The clock typically starts when you miss your first payment. In Texas, filing a lawsuit stops the clock from running. Suppose you owe a four-year debt and get sued three years and 11 months later. You won’t be able to use the statute as your defense.
Can Actions Restart the Statute of Limitations?
In many states, certain actions can restart the statute of limitations clock:
- Making any payment on the debt account
- Acknowledging you owe the debt
- Accepting a repayment plan
- Agreeing to a settlement amount
- Making charges on a dormant account
Debt collectors often try to persuade you to take these actions. Their goal is to restart the clock and regain their right to sue you.
Texas Law Protects You From Zombie Debts
Good news: Texas introduced new protections for debtors in recent years. Payments on time-barred debts no longer restart the statute of limitations clock. Collectors must also provide written notice before taking action on time-barred debts.
These protections save Texans from resurrecting “zombie debts.” You have stronger defenses against aggressive collection tactics.
How to Handle a Debt Collection Summons in Texas
Debt collection lawsuits are the most common civil cases filed in Texas courts. Small claims courts see the highest volume. If you have delinquent debt, your chances of being sued are high.
Texas has stricter rules than most states for answering debt lawsuits. Follow these guidelines carefully.
Know Your Deadlines
Texas uses a unique deadline format that varies by court type:
- Justice Court or Small Claims Court: File your Answer on a Monday after 14 days from service
- County Court or District Court: File your Answer on a Monday after 20 days from service
- If that Monday is a legal holiday, file on the next business day
- All Answers must be filed by 10:00 AM on the deadline
Missing these deadlines can cost you the case. Mark your calendar immediately after receiving a summons.
Prepare Your Answer
Your Answer responds to the claims the plaintiff made against you. You can deny, accept, or partially deny each claim. Include reasons why you believe the plaintiff has no case.
If your debt is past the four-year statute, mention this as an affirmative defense. The expired statute is a powerful legal shield.
You must send a copy of your Answer to the plaintiff or their lawyer. Follow all Texas service processes exactly. Use return receipt mail to prove delivery.
Need help responding to a debt lawsuit? Our partner Solo walks you through the process step by step.
File in the Right Court
Make sure you file your Answer in the correct court. Double-check the court name and address on your summons. Filing in the wrong court wastes time and money.
What Happens If You Ignore a Debt Lawsuit?
Ignoring a lawsuit is the worst thing you can do. The court will enter a default judgment against you. The creditor wins automatically.
A judgment gives collectors powerful tools to get their money:
- Wage garnishment up to 25% of your paycheck
- Bank account levies
- Property liens
- Damage to your credit report for up to seven years
You have strong defenses available. Don’t give them up by staying silent.
Common Defenses Against Debt Collection Lawsuits
You have several defenses you can raise in your Answer:
Expired Statute of Limitations
If more than four years have passed since your last payment, the debt is time-barred. The collector has no legal right to sue you.
Wrong Amount
Creditors often inflate the amount you owe with fees and interest. Challenge any amount that seems incorrect. Make them prove every dollar.
Not Your Debt
Identity theft happens. Creditors sometimes sue the wrong person. If you don’t recognize the debt, say so clearly.
Lack of Proof
The creditor must prove you owe the debt. They need documents showing you signed a contract. Many debt buyers can’t produce this evidence.
Paid or Settled
If you already paid or settled the debt, you have a complete defense. Gather your payment records and receipts.
Should You Settle or Fight the Lawsuit?
You have two main options when facing a debt lawsuit: settle or fight. Each has advantages depending on your situation.
When Settlement Makes Sense
Settlement can be smart if the debt is legitimate and recent. You might negotiate a lower amount or better payment terms. Settling avoids a judgment on your record.
Never settle before researching the statute of limitations. Don’t give up a winning defense too quickly.
When You Should Fight
Fight the lawsuit if any of these apply:
- The debt is past the statute of limitations
- You don’t recognize the debt
- The amount seems wrong
- You already paid the debt
- The creditor can’t prove you owe the money
Fighting takes effort but can save you thousands of dollars. Many creditors drop cases when debtors file proper Answers.
Our partner Solo helps you respond to debt lawsuits and negotiate settlements from a position of strength.
What to Expect at Your Court Hearing
If you file an Answer, the court will schedule a hearing. The plaintiff must prove their case with evidence. You’ll have a chance to present your defenses.
Arrive early and dress professionally. Bring copies of all documents supporting your case. Stay calm and respectful to the judge.
The plaintiff’s lawyer will present their evidence first. They need to show you signed a contract and owe the money. You can question their evidence and witnesses.
Then you present your defenses. Explain why you don’t owe the debt or why the statute has expired. Judges appreciate clear, organized arguments.
Can Debt Collectors Garnish Your Wages in Texas?
Texas offers strong wage garnishment protections. Most creditors cannot garnish your wages for consumer debts. Only certain debts allow wage garnishment in Texas:
- Child support
- Spousal support
- Student loans
- Unpaid taxes
Credit card companies and medical providers cannot garnish wages in Texas. They can levy bank accounts and place liens on property instead.
How Long Does a Judgment Last in Texas?
A judgment lasts 10 years in Texas. The creditor can renew it for another 10 years. Judgments appear on your credit report for seven years from the filing date.
Judgments give creditors powerful collection tools. They can seize bank accounts and place liens on your home. Fighting the lawsuit before judgment is always easier.
Your Rights Under the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act protects you from abusive collection tactics. Debt collectors cannot:
- Call you before 8 AM or after 9 PM
- Contact you at work if you tell them not to
- Harass or threaten you
- Lie about the amount you owe
- Sue you after the statute of limitations expires
- Pretend to be lawyers or government officials
If collectors violate these rules, you can sue them. You might recover up to $1,000 in damages plus attorney fees.
Take Action Now
Don’t let debt collectors intimidate you. You have strong legal rights in Texas. The four-year statute of limitations is your shield against old debts.
Answer every lawsuit even if you think you owe the money. Many creditors can’t prove their case. Filing an Answer protects your rights and opens settlement negotiations.
Texas debt collection rules are complex. Missing a deadline or filing incorrectly can cost you thousands. Getting help gives you the best chance of success.