Sued for Debt in Texas? Here's What to Do Next

By 10:00 AM on the first Monday after 20 days from service. Effectively about 14-20 days. This is one of the shortest deadlines.

4 years for all types of debt. After 4 years, the debt is time-barred.

No. Texas prohibits wage garnishment for consumer debts. This is one of the strongest protections in the country.

The TDCA provides additional protections beyond the federal FDCPA. It covers original creditors and third-party collectors and prohibits threats, deception, and unfair practices.

While they cannot garnish wages, they can place liens on non-homestead property, levy non-exempt bank funds, and attempt to seize non-exempt assets.

Generally no. Texas is one of the few states that prohibits wage garnishment for ordinary consumer debts, including credit card debt, medical bills, personal loans, and auto loan deficiencies, under Tex. Const. art. XVI § 28. The only exceptions are child support, court-ordered spousal maintenance, federal and state taxes, federally guaranteed student loans, and certain federal debts where federal law preempts state law. This is true even after a debt collector wins a judgment against you. The judgment can still be used to levy bank accounts (once wages are deposited and lose their character as wages, although Texas courts have generally protected wages even after deposit if traceable), place liens on non-homestead real property, and seize non-exempt personal property. If a debt collector threatens to garnish your wages in Texas, that threat itself can violate both the federal FDCPA and the Texas Debt Collection Act, which can entitle you to damages, attorney fees, and, under the DTPA, treble damages for knowing violations.

Yes. Tex. Fin. Code Ch. 392 requires third-party debt collectors to register with the Texas Secretary of State and post a $10,000 surety bond before collecting consumer debts in Texas. You can search the Secretary of State's database at sos.state.tx.us to verify whether a specific debt collector is registered. If a collector contacting or suing you is not registered and bonded, that itself is a violation of the TDCA and is actionable. Collecting in Texas without registration can also be a criminal misdemeanor under § 392.502. Note that the registration requirement applies to debt collectors as defined in the statute, which is broader than the federal FDCPA in some ways but also has its own exemptions. Original creditors collecting their own debts are not required to register, although they are still subject to most of the substantive prohibitions of the TDCA. A debt buyer that has purchased the account and is now collecting in its own name must register.

Texas's statute of limitations on most consumer debts, including credit card debt, is four years under Tex. Civ. Prac. & Rem. Code § 16.004. The clock generally starts on the date of the first missed payment that was never cured, often referred to as the date of default. Under Tex. Fin. Code § 392.307, debt buyers are statutorily prohibited from suing or threatening to sue on debts past the limitations period, and any payment, written promise, or new agreement made after the limitations expires does not restart the clock. This is one of the strongest anti-zombie-debt provisions in the country. If you are sued on a debt that is past four years old measured from default, you should raise statute of limitations as an affirmative defense in your answer. The defense is waived if not raised. Texas also requires debt buyers to provide specific disclosures in court filings about the chain of title to the debt under § 392.307.

Almost never. Texas has one of the most powerful homestead exemptions in the country under Tex. Prop. Code § 41.001. Your primary residence is exempt from forced sale by general unsecured creditors, with no dollar cap, up to 10 acres in an urban setting or 100 acres rural for a single adult, and up to 200 acres rural for a family. This means a debt buyer who wins a credit card or medical debt judgment against you generally cannot force a sale of your home. The homestead exemption does not apply to certain debts secured by the home itself, including mortgages, home equity loans authorized by Tex. Const. art. XVI § 50, mechanic's and materialman's liens for work on the home, and property taxes. A judgment can still attach as a lien on non-homestead property like a vacation home or rental, and the judgment creditor can renew the judgment every ten years under Tex. Civ. Prac. & Rem. Code § 34.001.

Justice court, sometimes called JP court, handles civil cases up to $20,000 in Texas under Tex. Gov't Code § 27.031. The summons (citation) will tell you the deadline to answer, which is typically 14 days from service in justice court under the Texas Rules of Civil Procedure for Justice Courts. File a written answer with the clerk by that deadline. The answer can be simple, denying the allegations and listing defenses such as lack of standing, statute of limitations, improper venue, failure to attach the contract, and noncompliance with the Texas Debt Collection Act including failure to register. Send a copy to the plaintiff's attorney. Justice court rules are more relaxed than district court, but you can still serve written discovery requests for documents like the original credit agreement, the bill of sale, and the chain of assignments. Many debt buyer cases collapse in justice court when the plaintiff cannot produce these records. Show up to every setting; default judgments are common against no-shows.