The Statute of Limitations for a Debtor's Suit in Texas

Facing a lawsuit is never a pleasant prospect, all the more so because the laws surrounding lawsuits can be complicated and confusing. In Texas, debtors facing a lawsuit should know that there are laws, known as statutes of limitation, that limit how long your creditors can sue you. The limitations that apply to you and your case can differ significantly based on the kind of lawsuit filed against you and your individual circumstances.

Statute of Limitations

A statute of limitations limits the amount of time a party has to take a specified action. In creditor/debtor situations, this legal ticking-clock typically starts once a debtor defaults on a loan obligation. For example, if you have a credit card and fail to make the monthly payment, the statute of limitations clock begins once you fail to meet the payment deadline. After that, the creditor has a limited amount of time to sue you.

Limitations on Actions

Debtor lawsuits typically fall into one of three categories: open accounts, written contracts and promissory notes. An open account is an ongoing loan where the debtor can continuously use more debt, such as a credit card. A written contract is a contractual debt obligation where both parties make concessions, while a promissory note is a written promise a debtor makes to repay the creditor. In Texas, open accounts and written contracts have a four-year statute of limitations, while promissory notes have a six-year statute.

Judgment Limitations

A judgment is what a court renders once it determines the outcome of a case. If a court holds in favor of a plaintiff, the judgment states which damages the plaintiff is entitled to receive from the defendant. The plaintiff then has a limited amount of time to collect that money through various means, such as wage garnishments or property seizure. In Texas, the statute of limitations on both Texas judgments and out-of-state judgments is 10 years, though it is renewable.

Procedural Limitations

In any lawsuit in Texas, there are also procedural time limits that both parties must meet. For example, if you file a lawsuit and want to change the details, you have to file an amended motion, known as a pleading. However, if you want to amend your pleading within seven days of the trial, you have to first ask the court's permission by filing a motion to amend the pleading.