Texas Debt Collection Statute of Limitations, Your Rights, Timelines & Protection Strategies

In Texas, debt doesn’t last forever. The law gives consumers a powerful shield—the four-year statute of limitations (SOL)—to protect against indefinite debt collection efforts. If you’re being chased for old debt, understanding this time limit can be the difference between peace of mind and costly legal mistakes.

This guide combines the legal foundations, common pitfalls, and smart defense strategies every Texan should know about expired debt and time-barred collections.

What Is the Statute of Limitations on Debt in Texas?

Texas law sets a 4-year deadline for most debt collection lawsuits. After this period, the debt becomes “time-barred,” meaning collectors can no longer sue you to recover it.

This rule is part of the Texas Civil Practice & Remedies Code § 16.004(a)(3).

Important: You still owe the debt, but the legal right to sue vanishes after the SOL expires.

Debts Covered Under Texas SOL

The four-year statute applies to most common types of debts:

• Credit cards
  
• Medical bills
  
• Personal loans
  
• Auto loans
  
• Oral/verbal agreements
  
• Business debt
  
• Lines of credit
  
• Promissory notes
  

All of these fall under written or oral contracts. Texas treats many open accounts (like credit cards) as written agreements.

When Does the 4-Year Clock Start?

The SOL countdown begins at the later of:

• The last payment date, or
  
• The date of default
  

For medical bills, it’s often the date services were rendered, not when insurance pays.

What Resets the Statute of Limitations?

Even an expired debt can be revived if you take certain actions. Here’s what restarts the clock:

• Partial payments (even $1 counts)
  
• Written acknowledgments confirming you owe the debt
  
• Entering a new repayment plan or promissory note

Does a verbal acknowledgment count?

No. In Texas, only signed written statements reset the SOL—not phone calls or verbal promises.

Time-Barred Debts: What Happens After Expiration

Once the 4-year period passes:

Collectors CANNOT:

• File a lawsuit
  
• Threaten legal action
  
• Garnish wages or bank accounts (unless judgment already exists)

Collectors CAN:

• Contact you requesting voluntary payment
  
• Report the debt to credit bureaus (only up to 7 years from first delinquency)
  
• Sell the debt to third-party collectors (creating “zombie debt”)
  

Since 2019, Texas requires debt buyers to inform you if they’re collecting on time-barred debts—and they cannot reset the SOL just by asking.

Debt-Specific Timelines in Texas (Quick Table)

Debt Type	SOL Period	Clock Starts From	Notes
Credit Cards	4 years	Last payment or charge	Treated as written contracts
Medical Bills	4 years	Date of service	Insurance delays do not affect SOL
Personal Loans	4 years	Date of default	Includes informal agreements
Auto Loans	4 years	Last payment	Vehicle may still be repossessed
Mortgages	4 years	First missed payment	Foreclosure follows separate deadlines
Oral Contracts	4 years	Agreement breach	Must be provable in court
Court Judgments	10+ years	Judgment entry date	Renewable; may last indefinitely
Federal Student Loans	No limit	N/A	Exempt from state SOL laws

Common Mistakes That Restart Expired Debts

Avoid these at all costs:

• Making any payment (even $5)
  
• Sending a written apology or acknowledgment
  
• Agreeing to a payment plan
  
• Clicking “I agree” on online debt portals
  

Tip: Use written disputes, not acknowledgments, when dealing with old debts.

Secured Debts: Mortgages & Auto Loans

While the monetary claim is limited by the 4-year SOL, repossession or foreclosure can occur under different deadlines set by the Texas Property Code.

• Mortgages may still lead to foreclosure after the SOL.
  
• Auto loans may result in repossession even after a lawsuit becomes invalid.

Exceptions: Judgments, Federal Loans, and Estates

• Court Judgments: Valid for 10 years, and can be renewed.
  
• Federal Student Loans: No statute of limitations; they’re collectible forever.
  
• Deceased Debtors: Creditors may pursue claims against an estate if within probate deadlines.

Bankruptcy, Tolling, and Out-of-State Debt

The SOL may be paused (tolled) in certain cases:

• Bankruptcy filings
  
• Mental incapacitation
  
• Fraud by the creditor
  
• Debtor leaves Texas for extended period
  

Also, beware of “choice of law” clauses in out-of-state contracts. A creditor may try to apply for a longer SOL from another state.

Your Rights Under FDCPA

The Fair Debt Collection Practices Act (FDCPA) shields you from abusive tactics:

You have the right to:

• Request written validation of any debt
  
• Dispute incorrect or re-aged debts
  
• File lawsuits against collectors for violations (up to $1,000 per incident + legal fees)

How to Respond to Debt Collectors

For Active Debts (< 4 years old):

• Dispute within 30 days of first contact
  
• Negotiate settlements (aim for 30–50% reduction)
  
• Track communication records

For Time-Barred Debts (> 4 years old):

• Send a Cease Contact Letter
  
• Never pay or acknowledge
  
• Dispute on your credit report if the debt is re-aged

Sample Cease & Dispute Letters

Sample Cease Letter:

“Per Texas Civil Practice & Remedies Code §16.004, this debt is time-barred. Cease all contact immediately.”

Sample Dispute Request:

“Under FDCPA §809, I am requesting written validation of this alleged debt. Until received, cease all collection efforts.”

Get free templates at TexasLawHelp.org.

Legal Help & Free Resources in Texas

• TexasLawHelp.org: Free cease-letter and dispute templates
  
• Texas Attorney General: Report abusive collectors
  
• FTC: File FDCPA complaints
  
• Legal Aid: Pro bono support available for low-income Texans

Key Takeaways & Action Steps

• The 4-year SOL applies to most debts in Texas.
  
• Know your last payment or default date—that’s when the clock starts.
  
• Don’t make partial payments on old debts—it restarts the SOL.
  
• Time-barred debts can’t be sued for, but can still appear on credit reports.
  
• Use FDCPA rights to protect yourself from abusive tactics.
  

“Texas’ 4-year window is a shield—not an eraser. Use it to stop lawsuits, but stay vigilant against zombie debts.” — Texas Consumer Law Center

Related Links:

• Texas Law Help – Debt Collection
  
• Consumer Financial Protection Bureau (CFPB)
  
• FTC Debt Collection FAQs