Texas Debt Collection Laws: Time Limits, Garnishment and Your Rights
Texas debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Texas
- Time limit to sue on a written contract
- 4 years. A suit on a debt must be brought within four years after the claim accrues; the residual period for claims with no other stated period is also four years. Tex. Civ. Prac. & Rem. Code 16.004(a)(3), 16.051
- Wage garnishment limit
- Current wages for personal services are exempt from seizure for ordinary consumer debts; the state exemption excepts only court-ordered child support. Tex. Prop. Code 42.001(b)(1)
- Money protected in a bank account
- No general exemption for cash or bank deposits. Exempt funds (such as Social Security) remain protected, and after a bank garnishment the creditor must send the debtor a Notice of Protected Property Rights and a claim form. Tex. Prop. Code 42.001-42.002; Tex. R. Civ. P. 663a, 679b
- Answering a debt lawsuit
- In justice court (debt claims), file a written answer and serve a copy on the plaintiff by the end of the 14th day after you were served; a general denial is enough. In county or district court, file a written answer by 10:00 a.m. Tex. R. Civ. P. 99(b), 502.5
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 4 years. A suit on a debt must be brought within four years after the claim accrues; the residual period for claims with no other stated period is also four years. |
|---|---|
| Time limit for credit cards and open accounts | 4 years, the same as other debts, whether the agreement is written or oral. |
| Can a payment restart the clock? | An acknowledgment of a debt that appears time-barred counts only if it is in writing and signed by the debtor. For consumer debt owned by a debt buyer, once the 4-year period has run the debt buyer may not sue or arbitrate, and the claim is not revived by a payment, an oral or written reaffirmation, or any other activity on the debt. Acknowledgment rule: https://tcss.legis.texas.gov/resources/CP/htm/CP.16.htm |
| How long a judgment lasts | A judgment becomes dormant if a writ of execution is not issued within 10 years after it is rendered, or if a later writ is not issued within 10 years after the previous one. A dormant judgment can be revived within 2 years after it becomes dormant. Revival: https://tcss.legis.texas.gov/resources/CP/htm/CP.31.htm |
If you are sued
| Answering a debt lawsuit | In justice court (debt claims), file a written answer and serve a copy on the plaintiff by the end of the 14th day after you were served; a general denial is enough. In county or district court, file a written answer by 10:00 a.m. on the Monday after 20 days have passed since you were served. If you do not answer, a default judgment may be entered. Source: Tex. R. Civ. P. 99(b), 502.5 |
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Garnishment and what creditors can't take
| Wage garnishment limit | Current wages for personal services are exempt from seizure for ordinary consumer debts; the state exemption excepts only court-ordered child support. (Federal law separately allows garnishment for some debts, such as federal student loans and taxes.) Source: Tex. Prop. Code 42.001(b)(1) |
|---|---|
| Money protected in a bank account | No general exemption for cash or bank deposits. Exempt funds (such as Social Security) remain protected, and after a bank garnishment the creditor must send the debtor a Notice of Protected Property Rights and a claim form. Rules: https://www.txcourts.gov/media/1463426/texas-rules-of-civil-procedure.pdf |
| Homestead exemption | No dollar limit. The homestead is exempt from creditors' claims (except purchase money, property taxes, certain improvement contracts and other permitted liens). Area limits: up to 10 acres for an urban home; up to 200 acres for a rural family home or 100 acres for a single adult. Source: Tex. Prop. Code 41.001, 41.002 |
| Vehicle exemption | One motor vehicle for each family member (or single adult) who holds a driver's license, or who relies on someone else to drive for them, counted within the overall personal property cap of $100,000 for a family or $50,000 for a single adult. |
| Claiming an exemption | When a post-judgment garnishment, execution or turnover freezes an individual's property, the creditor must serve the Notice of Protected Property Rights and a Protected Property Claim Form within three business days. The property cannot be sold or paid to the creditor for 14 days after service (17 if mailed). Filing the claim form (or a sworn equivalent) with the court requires a hearing, and nothing may be sold or paid out until the court decides; the debtor must prove the exemption. Source: Tex. R. Civ. P. 663a, 679b |
Debt collectors and interest
| State debt collection law | Yes. The Texas Debt Collection Act (Finance Code ch. 392) applies to any 'debt collector,' defined as a person who directly or indirectly collects consumer debts, which includes original creditors collecting their own debts. It also bars debt buyers from suing on time-barred consumer debt and requires a disclosure when they collect such debt. |
|---|---|
| Debt collector licensing | No license, but a third-party debt collector (or credit bureau) must obtain a $10,000 surety bond and file a copy with the Texas Secretary of State before collecting. Source: Tex. Fin. Code 392.101 |
| Medical debt protections | A consumer reporting agency may not report a medical collection account if the consumer had health coverage and the balance (after copays, deductibles and coinsurance) is owed to an emergency care provider or facility-based provider for an out-of-network claim. Medical information may not be included in reports for credit, insurance or marketing purposes without the consumer's consent. |
| Interest rate limits | If the contract does not set a rate, post-judgment interest is the prime rate set monthly by the Consumer Credit Commissioner, but not less than 5% or more than 15% a year. The current month's rate was not read. Source: Tex. Fin. Code 304.003 |
Where to get help in Texas
Debt & Collections FAQ
What is the statute of limitations on debt in Texas?
4 years. A suit on a debt must be brought within four years after the claim accrues; the residual period for claims with no other stated period is also four years.
How long can a creditor sue on a credit card debt in Texas?
4 years, the same as other debts, whether the agreement is written or oral.
Does making a payment restart the statute of limitations in Texas?
An acknowledgment of a debt that appears time-barred counts only if it is in writing and signed by the debtor. For consumer debt owned by a debt buyer, once the 4-year period has run the debt buyer may not sue or arbitrate, and the claim is not revived by a payment, an oral or written reaffirmation, or any other activity on the debt.
How long does a court judgment last in Texas?
A judgment becomes dormant if a writ of execution is not issued within 10 years after it is rendered, or if a later writ is not issued within 10 years after the previous one. A dormant judgment can be revived within 2 years after it becomes dormant.
How much of my wages can be garnished in Texas?
Current wages for personal services are exempt from seizure for ordinary consumer debts; the state exemption excepts only court-ordered child support. (Federal law separately allows garnishment for some debts, such as federal student loans and taxes.)
How much money in a bank account is protected from creditors in Texas?
No general exemption for cash or bank deposits. Exempt funds (such as Social Security) remain protected, and after a bank garnishment the creditor must send the debtor a Notice of Protected Property Rights and a claim form.
What is the homestead exemption in Texas?
No dollar limit. The homestead is exempt from creditors' claims (except purchase money, property taxes, certain improvement contracts and other permitted liens). Area limits: up to 10 acres for an urban home; up to 200 acres for a rural family home or 100 acres for a single adult.
Can a creditor take my car in Texas?
One motor vehicle for each family member (or single adult) who holds a driver's license, or who relies on someone else to drive for them, counted within the overall personal property cap of $100,000 for a family or $50,000 for a single adult.
What debt collection practices are illegal in Texas?
Yes. The Texas Debt Collection Act (Finance Code ch. 392) applies to any 'debt collector,' defined as a person who directly or indirectly collects consumer debts, which includes original creditors collecting their own debts. It also bars debt buyers from suing on time-barred consumer debt and requires a disclosure when they collect such debt.
Do debt collectors need a license in Texas?
No license, but a third-party debt collector (or credit bureau) must obtain a $10,000 surety bond and file a copy with the Texas Secretary of State before collecting.
What protections apply to medical debt in Texas?
A consumer reporting agency may not report a medical collection account if the consumer had health coverage and the balance (after copays, deductibles and coinsurance) is owed to an emergency care provider or facility-based provider for an out-of-network claim. Medical information may not be included in reports for credit, insurance or marketing purposes without the consumer's consent.
What is the maximum legal interest rate in Texas?
If the contract does not set a rate, post-judgment interest is the prime rate set monthly by the Consumer Credit Commissioner, but not less than 5% or more than 15% a year.
How do I respond to a debt collection lawsuit in Texas?
In justice court (debt claims), file a written answer and serve a copy on the plaintiff by the end of the 14th day after you were served; a general denial is enough. In county or district court, file a written answer by 10:00 a.m. on the Monday after 20 days have passed since you were served. If you do not answer, a default judgment may be entered.
How do I stop a garnishment or claim an exemption in Texas?
When a post-judgment garnishment, execution or turnover freezes an individual's property, the creditor must serve the Notice of Protected Property Rights and a Protected Property Claim Form within three business days. The property cannot be sold or paid to the creditor for 14 days after service (17 if mailed). Filing the claim form (or a sworn equivalent) with the court requires a hearing, and nothing may be sold or paid out until the court decides; the debtor must prove the exemption.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.