The Statute of Limitations on Texas Civil Debt

Texas, like other states, places a limit on the length of time that a person can sue for the collection of a debt. After the statute of limitations on a debt has expired, it means that the creditor can no longer file a breach of contract lawsuit or another type of lawsuit against the debtor for damages stemming from the debt. The length of the statute in Texas depends on the type of debt.

Statute of Limitations

Statutes of limitations on debts are designed to prevent an individual from facing a lawsuit over a debt many years after it was occurred. While a creditor can technically file a suit against a debtor after the statute of limitations has expired, the suit will have no legal validity. In Texas, a judge would simply through the lawsuit out unless the creditor could present a reason why the statute should be extended.

Texas Law

Under Texas, the length of the statute of limitations depends largely on the type of debt that the debtor has incurred. For most types of debts---oral contracts, written contracts, promissory notes and open-ended accounts---the statute of limitations for a lawsuit is four years. However, if the debt was incurred out of state or stems from a civil judgment, the length of the statute may be longer. A person will have to consult with an attorney for an exact determination.

Resets

In some cases, the statute of limitations on a debt can be reset. In most cases, the date of the statute starts on the date that the account went delinquent and was never brought right again. However, if the person makes a payment on the account, then the statute of limitations may be reset, in which case the four-year period will begin again. A judge may also order a statute extended.

Considerations

Even when a statute of limitations on a debt has expired, it does not mean that the debtor does not owe the money to the creditor anymore. Rather, the debtor still owes the money as before---the creditor simply can no longer sue him for its collection. This means that while a creditor can take relatively benign debt collection actions, such as notifying the debtor of the debt, it cannot garnish his wages or seize his assets.