Debt relief in Texas: collection rules, time limits and your options

Updated November 9, 2026

Texas at a glance (checked November 2026)

Debt collection rules in Texas

The Texas Debt Collection Act (Texas Finance Code, chapter 392) covers both collection agencies and the original creditor collecting its own debt. That's broader than the federal Fair Debt Collection Practices Act, which mostly covers third-party collectors. Under the Texas law, a collector can't:

• threaten violence, arrest or criminal charges for an unpaid debt,
• use profane or abusive language, or call over and over to harass you,
• misrepresent how much you owe or pretend to be a lawyer or a government agency,
• add fees or charges that the original agreement or the law doesn't allow.

Third-party collectors must file a surety bond with the Texas Secretary of State before collecting in Texas. You can sue a collector that breaks the act for your actual damages, and courts can also order it to stop.

The federal rules apply too: collectors can't call before 8 a.m. or after 9 p.m. your time, must stop calling your workplace if you tell them your employer doesn't allow it, and must send you a validation notice you can dispute within 30 days.

How long creditors have to sue

Texas gives creditors 4 years to sue on most consumer debts, including credit cards, personal loans and medical bills. The clock usually starts when you fall behind and don't catch up.

After that, the debt is "time-barred." A collector can still ask you to pay it, but it can't win a lawsuit if you raise the time limit as a defense. Texas also says that a debt buyer can't sue on a time-barred debt, and that a payment you make on one doesn't restart the clock for a debt buyer (Finance Code § 392.307).

If you're sued, answer the lawsuit by the deadline on the papers, even if you think the debt is too old. A judge won't apply the time limit unless you raise it.

What can be garnished in Texas

Texas is one of the few states that doesn't allow wage garnishment for ordinary consumer debts such as credit cards, medical bills and personal loans, even after a creditor wins a judgment. The exceptions are child support, spousal maintenance, federal taxes and defaulted federal student loans.

Texas also protects your homestead (within acreage limits), and a set amount of personal property such as a vehicle per driver, household goods and retirement accounts. Money in a bank account has less protection than wages, so talk with an attorney if a creditor goes after your account.

Ways out of debt in Texas

• Nonprofit credit counseling can set up a debt management plan with lower card interest rates. Look for agencies accredited by the NFCC or FCAA.
• Debt consolidation through a loan or balance transfer card can lower your rate if your credit is still good. Run the numbers with our debt consolidation calculator.
• Debt settlement companies must follow the federal rule that bans fees before a debt is settled. Settled amounts can count as taxable income.
• Bankruptcy: Texas has some of the strongest exemptions in the country, so many people keep their home and car in a Chapter 7 case.

Where to get help or complain

• Texas Attorney General, Consumer Protection takes complaints about debt collectors.
• Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
• TexasLawHelp.org has free legal information and forms, and lists legal aid offices.

General information about Texas law, not legal advice. Checked November 2026.