In Texas, there is a statute of limitations on how long a debt collector can pursue a debt. The statute of limitations is the time limit that a creditor or debt collector has to file a lawsuit to collect a debt. Once the statute of limitations has expired, the creditor or debt collector can no longer sue you to collect the debt. The statute of limitations for debt collection in Texas varies depending on the type of debt. Here is a breakdown of the time limits for different types of debt:
Written Contracts
For debts based on a written contract, such as a personal loan or credit card debt, a Fort Worth, TX debt relief lawyer from Leinart Law Firm knows the statute of limitations in Texas is four years from the date the debt became delinquent. This means that if you stop making payments on a debt, the creditor or debt collector has four years from that date to file a lawsuit to collect the debt.
Oral Contracts, Promissory Notes, and Open Accounts
For debts based on an oral contract, promissory notes, and open accounts, the statute of limitations in Texas is also four years.
It is important to note that the statute of limitations can be extended or “tolled” in certain circumstances, such as if you leave the state or if you make a partial payment on the debt. If the statute of limitations is tolled, the clock is paused and the creditor or debt collector has additional time to file a lawsuit.
If you are being pursued by a debt collector for a debt that you believe is beyond the statute of limitations, it is important to take action to protect yourself. Here are some steps you can take:
Verify the Debt
Before taking any action, verify that the debt is legitimate and that the statute of limitations has expired.
Do Not Make Any Payments
If the statute of limitations has expired, do not make any payments on the debt. Making a payment on an old debt can restart the clock on the statute of limitations, giving the debt collector additional time to sue you.
Respond to Lawsuit Notices
If you receive a notice of a lawsuit from a debt collector, it is important to respond in a timely manner. Failure to respond can result in a default judgment being entered against you, allowing the debt collector to garnish your wages or bank account.
Seek Legal Help
If you are being pursued by a debt collector for a debt that you believe is beyond the statute of limitations, it is important to seek legal help. A debt collection attorney can help you understand your rights and options and can represent you in court if necessary.
The statute of limitations for debt collection in Texas varies depending on the type of debt. If you are being pursued by a debt collector for a debt that you believe is beyond the statute of limitations, it is important to take action to protect yourself by getting the help of a local lawyer as soon as possible.
