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What is the Statute of Limitations on Debt in Texas?
by
JG Wentworth
•
April 30, 2025
•
5 min
Are you struggling with debt in the Lone Star State? Texas law establishes specific time limits during which creditors must pursue legal action for unpaid debts. These time limits, known as statutes of limitations, vary depending on the type of debt. Once this period expires, creditors lose their right to sue for collection, though the debt itself doesn’t automatically disappear.
Let’s take a closer look at what these timeframes entail in the great state of Texas…
Written contracts: 4 years
Most standard debts backed by written agreements fall under this category, including:
- Personal loans with written documentation.
- Auto loans.
- Medical debts with signed payment agreements.
- Business loans with contracts.
- Student loans from private lenders.
The four-year period begins on the date of default or the last payment made, whichever is more recent.
Credit card debt: 4 years
Credit cards are generally considered written contracts in Texas, with a four-year limitation period. The clock starts when you miss a payment and continues until the limitation period expires or you make another payment (which resets the clock).
Oral agreements: 4 years
Verbal lending arrangements also have a four-year statute of limitations in Texas. However, these can be challenging for creditors to enforce due to lack of documentation.
Promissory notes: 4 years
These are written promises to pay a specific amount by a certain date and include many personal loans and some mortgage agreements.
Open-ended accounts: 4 years
Revolving credit arrangements like credit cards and lines of credit fall into this category.
Medical debt: 4 years
Unless governed by a special agreement, medical debt typically falls under written contracts with a four-year limitation period.
Judgments: 10 years (renewable)
If a creditor successfully sues and obtains a court judgment against you before the statute of limitations expires, they have 10 years to collect on that judgment. Importantly, judgments in Texas can be renewed for additional 10-year periods, potentially extending collection activities for decades.
Federal student loans: No limitation
While private student loans follow the four-year rule, federal student loans are not subject to state statutes of limitations. The federal government can pursue collection indefinitely.
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Key considerations about the statute of limitations
Now that you have a better understanding of the various timeframes, here are some other important details to keep in mind:
The clock’s starting point
The limitation period generally begins:
- On the date of your first missed payment (default).
- On the date your debt was charged off by the original creditor.
- On the date of your most recent payment.
Resetting the clock
The statute of limitations can restart if you:
- Make a payment, even a small one.
- Acknowledge the debt in writing.
- Enter into a payment plan.
- Make a written promise to pay the debt.
This “re-aging” or “reviving” the debt is why debt collectors may encourage small payments on old debts—it can restart the entire limitation period.
Zombie debt and time-barred collections
“Zombie debt” refers to old debts that have passed their statute of limitations but are still pursued by collectors. While creditors cannot legally sue you for time-barred debt in Texas, they can still:
- Contact you about the debt.
- Ask you to pay voluntarily.
- Report the debt to credit bureaus (within credit reporting time limits).
Legal protections
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must be truthful about whether a debt is time-barred. If you believe a collector is pursuing legal action on an expired debt, you can:
- Request debt verification.
- Assert the statute of limitations as a defense in court.
- File complaints with the Texas Attorney General, the Consumer Financial Protection Bureau, or the Federal Trade Commission.
Limitations on credit reporting
While the statute of limitations governs legal action, credit reporting follows different rules. In Texas, as elsewhere under federal law, most negative items can remain on your credit report for seven years, regardless of the legal status of the debt.
State-specific nuances in Texas
Keep these considerations in mind if you’re in the Lone Star State:
- Burden of proof: In Texas courts, if you assert that the statute of limitations has expired, the burden of proof shifts to the creditor to demonstrate that the debt is still within the limitation period.
- Default provisions: Some contracts include provisions specifying that the laws of other states govern the agreement. However, Texas courts generally apply Texas limitations periods regardless of these provisions when the case is heard in Texas.
The bottom line
The statute of limitations provides important protections for consumers against indefinite collection attempts. In Texas, most debts have a four-year window for legal action, with judgments lasting for 10 years with the possibility of renewal. Understanding these time frames can help you make informed decisions when dealing with old debts and collection attempts.
Remember that while a time-barred debt cannot be legally enforced through the courts, it doesn’t erase the debt itself. Ethical considerations about repayment and potential impacts on your credit history may still influence your decisions about handling expired debts.
There’s always JG Wentworth…
If you have $10,000 or more in unsecured debt there’s a good chance you’ll qualify for the JG Wentworth Debt Relief Program.* Some of our program perks include:
- One monthly program payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- We only get paid when we settle your debt
If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
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* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that you consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.