State guides · Texas
Texas debt relief and debt laws
Texas shields paychecks from most debt collection, protects a home by acreage rather than dollar value, and lets justice courts hear debt suits up to $20,000. Below: the Texas rules, free help near you, and where debt relief fits.
Every Texas rule is cited to its statute or state source.
Texas at a glance
Texas debt law, in 11 facts.
Where we stand in Texas
Pending counsel review
Our counsel is reviewing Texas registration rules for debt relief companies, and where we stand under them, before we describe how we work with Texas residents.
LicensingLicense or registration details are being confirmed with counsel.
See every state and license on our licensing and disclosures page.
Who regulates collectors and debt relief here
- Office of Consumer Credit CommissionerRegisters debt management and debt settlement providers, and publishes the fee limits they must follow. Texas Office of Consumer Credit Commissioner source, opens in a new tab
- Attorney General, Consumer ProtectionTakes complaints, including about unlawful debt collection. The OCCC sends third-party collector complaints here. Texas Attorney General source, opens in a new tab
- OCCC consumer helplineAnswers questions about lenders the OCCC licenses: 800-538-1579. Texas Office of Consumer Credit Commissioner source, opens in a new tab
Consumer bankruptcies in Texas
Up 20.6%
Consumer (nonbusiness) bankruptcy filings across Texas's four federal districts went from 31,012 to 37,406 in the 12 months to June 30, 2026, against the year before. The Southern District, which takes in Houston, rose 29.6%, the most of the four.
As of June 30, 2026. Source: U.S. Courts (opens in a new tab)
Texas guides
Texas debt law, answered one question at a time.
Each guide takes one Texas question, prints the statute or rule behind the answer, shows when we last checked it, and lists free legal help.
Time limits
How long can a creditor sue you in Texas?
The 4-year rule, open accounts, notes, the debt buyer ban on old debt, and dormant judgments.
Lawsuits
Sued for a debt in Texas
Justice court debt claim cases, county and district court, the 14-day answer, and appeals.
Garnishment
Can your wages be garnished in Texas?
The constitutional wage rule, its exceptions, bank accounts, and how to claim what is exempt.
Collectors
The Texas Debt Collection Act
What Chapter 392 bans, the $10,000 bond, and where Texans can complain.
Bankruptcy
Bankruptcy or settlement in Texas?
Chapter 7, Chapter 13 and settlement compared, with the Texas homestead and the means test.
What does Texas add to the federal debt collection rules?
The Texas Debt Collection Act, Chapter 392 of the Finance Code, defines a debt collector as any person who collects (Texas Legislature, opens in a new tab) a consumer debt, directly or indirectly. The state credit regulator reads it the same way: Texas law reaches anyone (Texas Office of Consumer Credit Commissioner, opens in a new tab) trying to collect a consumer debt, including the lender that made the loan.
- No threat of arrest for an unpaid consumer debt without proper court proceedings (§ 392.301(a)(5)).
- No threat to seize or sell property without proper court proceedings when the law requires one (§ 392.301(a)(7)).
- No repeated calls made with the intent to harass (§ 392.302(4)).
- No misstating what you owe or the status of a case against you (§ 392.304(a)(8)).
A third-party collector must also keep a $10,000 surety bond (Texas Legislature, opens in a new tab) on file with the Secretary of State. A person harmed by a violation can sue for actual damages and attorney's fees under § 392.403.
Where are Texas debt suits heard, and how fast must you answer?
Many card and medical debt suits are filed in justice court, which hears civil claims up to $20,000 (Texas Legislature, opens in a new tab). The rules call a suit brought there by a debt buyer, collector, bank or lender a debt claim case (Supreme Court of Texas, opens in a new tab), and they set out what the petition has to say about the account.
In justice court the written answer is due by the end of the 14th day after you are served. In county or district court it is due by 10:00 a.m. on the Monday after 20 days have passed.
We are not a law firm and cannot give legal advice. If you have been served in Texas, contact TexasLawHelp.org, a legal aid office or the State Bar referral service before your answer date.
What can a creditor collect after a Texas judgment?
Less than many people expect. The Texas Constitution says current wages may not be garnished (Texas Legislature, opens in a new tab) except to enforce court-ordered child support or spousal maintenance, and the garnishment statute repeats the rule for current wages (Texas Legislature, opens in a new tab).
A judgment creditor can still ask a court to garnish a bank account or order nonexempt property turned over, so knowing what is exempt matters.
| Property | Protection | Statute |
|---|---|---|
| A home (homestead) | 10 acres in a city; 200 acres rural for a family, 100 for a single adult; no dollar cap | Tex. Prop. Code § 41.002 (Texas Legislature, opens in a new tab) |
| Listed personal property | Up to $100,000 for a family or $50,000 for a single adult, by fair market value | Tex. Prop. Code § 42.001(a) (Texas Legislature, opens in a new tab) |
| A vehicle | One for each licensed driver in the household, within the personal property cap | Tex. Prop. Code § 42.002(a)(9) (Texas Legislature, opens in a new tab) |
| Retirement accounts | Tax-qualified plans, IRAs, Roth IRAs and health savings accounts | Tex. Prop. Code § 42.0021 (Texas Legislature, opens in a new tab) |
Exempt money that has been frozen usually has to be claimed through the court. TexasLawHelp.org publishes the claim form and instructions, and a legal aid office can help.
What rules apply to debt relief companies in Texas?
The FTC's Telemarketing Sales Rule (FTC, opens in a new tab) applies nationwide: a debt relief company may not collect a fee before it settles a debt and you make a payment under that settlement.
Texas adds its own layer. A company that seeks concessions from creditors for Texans must register with the consumer credit commissioner (Texas Legislature, opens in a new tab), wherever the company is based, and Chapter 394 limits the fees it may charge.
The state regulator publishes the adjusted fee limits (Texas Office of Consumer Credit Commissioner, opens in a new tab) each July. Our own status in Texas appears in the state summary and on our licensing and disclosures page. With any company, ask for every fee in writing and look it up with the OCCC before you sign.
Which debt options are open to Texans?
Free
Nonprofit credit counseling
A counselor reviews your budget and may set up a debt management plan that repays the full balance at a lower rate.
What we do
Debt settlement
Creditors are asked to accept less than the full balance. It fits $10,000 or more of unsecured debt, costs a fee, and your credit will drop1.
Court process
Bankruptcy
Chapter 7 or Chapter 13, where Texans may choose the Texas or the federal exemption list. See a bankruptcy attorney first.
Do it yourself
Talk to each creditor
Ask about hardship plans while the account is still with the lender, and keep every new term in writing.
Laid off in Texas? Claim unemployment benefits first.
File a claim with the Texas Workforce Commission (Texas Workforce Commission, opens in a new tab) in the week you lose work. Then write to each creditor about the change and ask what hardship options they offer before a payment is missed.
The total you can draw in a benefit year is capped by Tex. Lab. Code § 207.005 (Texas Legislature, opens in a new tab).
Where to get legal help
Free and low-cost legal help in Texas.
We are not a law firm and cannot give legal advice. These are the people who can, many of them free. None of them pays us, and we do not pay them.
-
A lawyer
State Bar of Texas Lawyer Referral and Information Service
Refers you to a lawyer for your kind of case. The first consultation, up to 30 minutes, costs no more than $20. Phone (800) 252-9690; Spanish spoken.
Open the State Bar of Texas (opens in a new tab) -
Legal aid
TexasLawHelp.org
A program of Texas Legal Services Center: free guides and forms for debt cases, including answering a debt suit in justice court, and a finder for legal aid near you.
Open TexasLawHelp.org (opens in a new tab) -
Court self-help
Texas State Law Library: legal help
The state law library's list of Texas legal hotlines, clinics and legal aid organizations. Librarians can point you to the law but cannot tell you what it means for your case.
Open the State Law Library (opens in a new tab) -
Legal aid
Free legal aid near you
Legal aid offices give free civil legal help, including with debt lawsuits, to people who qualify. The Legal Services Corporation finder lists the office for your area.
Find legal aid (LSC) (opens in a new tab) -
A lawyer
How to find a consumer lawyer
The CFPB explains where to look for a lawyer who handles debt collection cases, and what experience to look for.
Read the CFPB guide (opens in a new tab)
Things you should know
The downsides, stated plainly.
Read these before you enroll anywhere, including with us. They apply to every debt settlement program.
- Your credit score will drop during the program, and late payments stay on your credit report.
- Creditors may keep collecting while you save, and they can sue. The program does not stop legal action.
- Interest and late fees can keep adding to your balances until each account settles.
- Forgiven debt may be taxable income. A creditor may send you IRS Form 1099-C.
- Fees apply. The fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached.
- Not all creditors agree to settle, and not everyone completes the program.
- We do not guarantee any amount, percentage or timeline.
- Debt settlement is not available in all states. We are not a nonprofit or a credit counseling service, and we do not lend money.
- We do not give legal or tax advice. Talk to an attorney or a tax professional about your situation.
Notes on the figures and claims above
- 1Whether an account settles, and for how much, depends on the creditor. Not all debts settle. Your credit score will drop during the program, creditors may sue, and forgiven debt may be taxable. Fees apply.
What is the statute of limitations on debt in Texas?
Generally 4 years from when the claim accrues, under Texas Civil Practice and Remedies Code section 16.004. A note payable on a set date can have 6 years. Once the limit has run, a debt buyer may not sue, and a payment does not revive the claim.
Can a creditor garnish my wages in Texas?
Not for credit card, medical or most other consumer debt. The Texas Constitution allows wage garnishment only for court-ordered child support and spousal maintenance. Federal law adds exceptions for some federal debts, such as defaulted federal student loans and taxes.
Can a creditor take my house in Texas?
A Texas homestead is exempt from most creditors, within its acreage limits and with no dollar cap. The exceptions include the mortgage used to buy it, property taxes, and certain home equity, repair and improvement liens.
Does Texas run a debt relief program?
We are not aware of a state-run debt relief program. What Texas does is regulate: companies that negotiate with creditors for Texans must register with the Office of Consumer Credit Commissioner, and state law limits their fees.
Sources
Where the facts on this page come from. Each link opens the original in a new tab.
- 01 Texas Legislature Tex. Civ. Prac. & Rem. Code ch. 16: limitations (16.004 four years on a debt and on open accounts; 16.063 absence from Texas; 16.065 written acknowledgment) (opens in a new tab)
- 02 Texas Legislature Tex. Fin. Code ch. 392: the Texas Debt Collection Act (392.101 bond, 392.301 to 392.304 banned practices, 392.307 time-barred debt, 392.403 remedies) (opens in a new tab)
- 03 Texas Legislature Texas Constitution, Article XVI, Section 28: no garnishment of current wages except court-ordered child support and spousal maintenance (opens in a new tab)
- 04 Texas Legislature Tex. Civ. Prac. & Rem. Code ch. 63: garnishment (63.001 grounds, 63.004 current wages exempt) (opens in a new tab)
- 05 Texas Legislature Tex. Prop. Code ch. 41: the homestead exemption (41.001 exempt from seizure; 41.002 10 acres urban, 200 or 100 acres rural) (opens in a new tab)
- 06 Texas Legislature Tex. Prop. Code ch. 42: personal property exemptions (42.001 $100,000 family or $50,000 single; 42.002 list; 42.0021 retirement accounts) (opens in a new tab)
- 07 Texas Legislature Tex. Gov't Code 27.031: justice court jurisdiction (up to $20,000) (opens in a new tab)
- 08 Supreme Court of Texas Texas Rules of Civil Procedure, as amended July 1, 2026 (Rule 99 citation and answer; Part V justice court rules 500 to 510) (opens in a new tab)
- 09 Texas Legislature Tex. Civ. Prac. & Rem. Code 34.001: a judgment becomes dormant without a writ of execution within 10 years (opens in a new tab)
- 10 Texas Legislature Tex. Fin. Code ch. 394, subch. C: consumer debt management services (394.204 registration, 394.210 fees) (opens in a new tab)
- 11 Texas Office of Consumer Credit Commissioner Debt management and settlement providers: registration and adjusted fee limits (July 1, 2026 to June 30, 2027) (opens in a new tab)
- 12 Texas Office of Consumer Credit Commissioner Debt collection practices: Texas law and where to complain (opens in a new tab)
- 13 Texas Office of Consumer Credit Commissioner Filing a consumer complaint (helpline 800-538-1579) (opens in a new tab)
- 14 Texas Attorney General File a consumer complaint (including unlawful debt collection) (opens in a new tab)
- 15 FTC Debt Relief Services and the Telemarketing Sales Rule: A Guide for Business (opens in a new tab)
- 16 Texas Workforce Commission Unemployment benefits: eligibility and benefit amounts ($75 to $605 a week from October 5, 2025) (opens in a new tab)
- 17 Texas Legislature Tex. Lab. Code 207.005: maximum unemployment benefits (the lesser of 26 times the weekly amount or 27% of base-period wages) (opens in a new tab)
- 18 U.S. Courts Table F-2: bankruptcy filings by district, 12 months ending June 30, 2026 (opens in a new tab)
- 19 U.S. Courts Table F-2: bankruptcy filings by district, 12 months ending June 30, 2025 (opens in a new tab)
- 20 Cornell LII 15 U.S. Code 1673: Restriction on garnishment (25% of disposable earnings or 30 times the federal minimum wage) (opens in a new tab)
- 21 Cornell LII 20 U.S. Code 1095a: administrative wage garnishment for federal student loans (up to 15% of disposable pay) (opens in a new tab)
- 22 CFPB Submit a complaint (opens in a new tab)
Next step
Live in Texas? See the numbers first.
Check an illustrative estimate across your unsecured debt, with our fee shown as its own line. Nothing is signed until you say yes.
Four short steps
Your estimate first. Contact details last.
- 1How much you owea close guess is fine
- 2What kinds of debtpick all that apply
- 3Which state you live inchecked before anything else
- 4Your estimate, then a real person if you want one