The Statute of Limitations for Revolving Debt in Texas

The statute of limitations in Texas for revolving debts is in place to provide creditors a certain amount of time to pursue you for money owed. After the time limit expires, creditors become limited in what actions can be taken to legally force payment. If you communicate with creditors, including answering phone calls or responding to letters, the clock on the statute of limitations resets.

Revolving Debt Definition

A debt is considered revolving when it has an open term of repayment, monthly payments based on the percentage of the balance and usually a fluctuating interest rate. A credit card is the most common example of a revolving debt. The credit in a revolving debt is open-ended, meaning you don't have to reapply for credit to continue to use the account. You may use the account up to a predetermined spending limit and make monthly payments to reduce the balance over time. As long as your account is in good standing, the credit is available for you to use.

Texas Debt Statutes

In Texas, the statute of limitations for the collection of a revolving debt is four years. The clock on the statute begins on the first day after the debtor misses a monthly payment. This clock resets if you bring the account into good standing through proper payment. After the statute expires, a creditor or debt collection agency can no longer legally file a lawsuit against you to obtain a judgment for payment. Other collection practices, including phone calls, emails and letters, may continue past this date. A delinquency notation on your credit report from a past-due revolving account may remain for up to seven years.

Legal Collection Practices

The practices of debt collection in Texas are regulated by the Texas Debt Collection Act. The regulations detailed in this law prohibit the use of fraudulent or abusive behavior for the purpose of collecting debt. It is illegal for a creditor or debt collection agency to threaten you, use abusive language or harass you while attempting to collect on your delinquent account. It is also illegal for a creditor or collection agency to attempt to collect more than was originally agreed upon unless the balance of your debt increased due to attorney fees, investigation fees or collection fees.

Homes and Wages

In Texas, if your home is declared a homestead it can not be legally seized to pay a debt, including a revolving account, unless the debt is directly tied to the home like a mortgage or deed of trust. Your wages are subject to garnishment for paying back child support, taxes and defaulted student loans. A creditor can not obtain a judgment to garnish your wages for a consumer debt like a revolving account.