Texas: Credit, Debt & Bankruptcy

Federal laws like the FDCPA and FCRA set a floor in every state. But the details that matter most in Texas come from Texas law and Texas courts. That includes how long you have to answer a lawsuit and how long a creditor can sue. It also covers how much of your income is protected.

A collector might be calling. A citation might have just arrived. Either way, knowing where to find the official state resources matters as much as knowing your federal rights.

Your official Texas resources

These are the state-level starting points most Texans dealing with debt problems need:

• Texas Attorney General — Your Debt Collection Rights — consumer protection information plus the state complaint portal for debt collectors, credit repair companies, and other businesses.
• Texas State Law Library — Debt Collection Guide — the state law library's free, plain-language guide to debt, lawsuits, and exemptions, with links to the forms and statutes involved.
• Texas Law Help — the statewide legal aid portal run by Texas legal-aid organizations: step-by-step guides, court-ready answer forms, and a directory of free and low-cost help.
• U.S. Bankruptcy Courts — Texas has four federal districts: Northern (Dallas–Fort Worth, Amarillo, Lubbock), Southern (Houston, Corpus Christi, the Rio Grande Valley), Eastern (Tyler, Beaumont, Sherman), and Western (Austin, San Antonio, El Paso, Waco).

If you need	Official starting point
To respond to a debt lawsuit	Texas Law Help or the state law library guide
To report a collector or scam	Attorney General consumer page
Free or low-cost legal help	Texas Law Help
Bankruptcy forms and local rules	Your district's bankruptcy court site

Debt lawsuits in Texas

When a collector sues in Texas, the case usually lands in one of two places. Smaller amounts often go to a justice court — also called a JP court — as a debt-claim case. Larger amounts go to a county or district court.

Either way, the person being sued generally must file a written answer with the court. Texas Law Help describes a 14-day window to answer in justice court. In county or district court, the answer is due by the Monday after 20 days from the date of service. The citation received is what actually controls, so it's worth checking first.

Missing the deadline lets the collector ask for a default judgment. That can lead to a frozen bank account.

Filing an answer forces the collector to prove its case with evidence. Court filing fees can sometimes be waived for people with low incomes.

A good starting point is what to do when you're sued for a debt. The debt lawsuit response checklist walks through the process alongside the official guides.

Statute of limitations basics

Texas's deadline for suing on most consumer debts is commonly cited as four years. That includes most credit cards and loans, under the state's Civil Practice and Remedies Code.

The exact math can shift, though. The start date, the type of agreement, and out-of-state choice-of-law clauses can all change it. It's worth verifying how current law applies to your specific debt.

An expired limitations period doesn't apply itself. It's generally a defense a person must raise on their own — courts don't apply it automatically. Read how the statute of limitations on debt works before making any decision about an old account.

Wage garnishment and protected income

Texas offers some of the strongest wage protections in the country. The Texas Constitution generally bars garnishment of current wages for ordinary consumer debts, like credit cards and medical bills.

Garnishment is mainly allowed for court-ordered child support and spousal maintenance. It is also allowed for certain federal debts, such as taxes and defaulted student loans. That reaches well beyond the federal floor, which only caps garnishment rather than blocking it outright.

As of mid-2026, this is the general picture. Exceptions and procedures exist, so it's worth verifying with the court or legal aid.

One important caveat: once wages land in a bank account, they can lose that protection. A judgment creditor may then try to freeze the account.

Social Security and certain other federal benefits are generally protected from commercial garnishment, regardless of state. Our wage garnishment guide covers the federal baseline and how exemption claims generally work.

Bankruptcy in Texas

Bankruptcy is federal, but it runs through local courts. Which of Texas's four districts handles a case depends on the county where the filer lives.

Each district's website posts local rules, forms, filing locations, and self-representation information: Northern, Southern, Eastern, and Western.

State law also shapes which property exemptions filers can use to protect a home, vehicle, and belongings. Texas is known for generous exemptions, including a homestead protection that's among the broadest in the nation.

The specifics and any dollar figures adjust over time. It's worth verifying current exemptions with the court, legal aid, or a bankruptcy attorney rather than relying on any static article.

For the big picture, start with our bankruptcy hub and the guide to filing without a lawyer.

Free and low-cost legal help

Many Texans qualify for free help and never use it. Texas Law Help routes people to legal aid offices and posts court-ready forms and guides. The Texas State Law Library offers free research help and self-help materials too.

Local court clerks can explain where and how to file, though they can't give legal advice. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

• ✕Letting the answer deadline pass because settlement talks are underway. Negotiating doesn't pause the court clock — a default judgment can still be entered.
• ✕Making a small payment on an old debt before checking the dates. In Texas, a payment or a written promise to pay can restart the statute of limitations.
• ✕Assuming wages can be garnished for a credit card. Texas generally bars that, but money already sitting in a bank account can still be frozen after a judgment.
• ✕Filing in the wrong court. Texas debt cases run through justice, county, and district courts. Bankruptcy runs through four federal districts based on where the filer lives.
• ✕Paying a company for help before checking Texas Law Help and the state law library, which are free.
• ✕Treating a default judgment as final without asking about options. Courts can sometimes set defaults aside, but the window and grounds are limited.

Credit repair companies in Texas: registration, bond, and how to check

Texas regulates credit repair companies as "credit services organizations" under Texas Finance Code chapter 393. Before doing business, a CSO must register with the Texas Secretary of State (§393.101), and it may collect a fee before finishing the work only if it holds a $10,000 surety bond or surety account (§§393.302, 393.403). The contract must be in writing with a three-day cancellation notice (§393.202).

How to check a company: search the Secretary of State's CSO registration page. The SOS is a filing office only and does not investigate disputes. Then look the company up in the CFPB complaint database.

How to complain: the Texas Attorney General's consumer complaint portal and the CFPB.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees, requires a written contract, and gives a three-business-day right to cancel. Accurate, timely items cannot be removed by anyone. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in Texas

Texas has four federal bankruptcy districts — Northern, Southern, Eastern, and Western — and a case is filed in the one serving the county where the filer lives. The district site posts local rules, local forms, and any pro se help or volunteer-lawyer program.

The State Bar of Texas Lawyer Referral and Information Service (800-252-9690, Monday through Friday) serves more than 240 counties with a reduced-fee first consultation; Bexar, Dallas, Harris, Jefferson, Tarrant, and Travis counties have their own certified local referral services, listed on the same page.

If income is limited, the LSC legal aid locator finds the federally funded program for any Texas address, and the NACBA member directory lists consumer bankruptcy attorneys by ZIP code. The ordered path, what a consultation costs, and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

Can my wages be garnished in Texas for credit card debt?

Generally, no — the Texas Constitution generally bars garnishment of current wages for ordinary consumer debts like credit cards and medical bills, which reaches well beyond the federal floor that only caps garnishment rather than blocking it outright. Garnishment is mainly allowed for court-ordered child support and spousal maintenance, and for certain federal debts such as taxes and defaulted student loans.

What is Texas's statute of limitations on credit card debt?

Texas's deadline for suing on most consumer debts, including most credit cards and loans, is commonly cited as four years under the state's Civil Practice and Remedies Code. The start date, the type of agreement, and out-of-state choice-of-law clauses can all change the math, so it's worth verifying how current law applies to a specific debt.

If Texas bars wage garnishment, is a judgment harmless there?

No — once wages land in a bank account they can lose that protection, and a judgment creditor may then try to freeze the account. Texas is also known for generous bankruptcy exemptions, including a homestead protection that's among the broadest in the nation, though the specifics adjust over time.

How long do I have to respond to a debt lawsuit in Texas?

Texas Law Help describes a 14-day window to answer in justice court for smaller debt-claim cases, while in county or district court the answer is due by the Monday after 20 days from the date of service. The citation actually received is what controls, so it's worth checking that first.

Can a payment restart the statute of limitations on an old debt in Texas?

Yes — in Texas, a new payment, even a small one, can restart the clock, and so can a written promise to pay. That's why many people check the dates before paying anything on a debt they haven't touched in years.

Where do I find legal aid in Texas?

Texas Law Help is the statewide legal aid portal run by Texas legal-aid organizations, offering step-by-step guides, court-ready answer forms, and a directory of free and low-cost help. The Texas State Law Library also offers free research help and self-help materials.

What happens if I don't respond to a debt lawsuit in Texas?

Missing the answer deadline lets the collector ask for a default judgment, which can lead to a frozen bank account. Filing an answer instead forces the collector to prove its case with evidence, and court filing fees can sometimes be waived for people with low incomes.

How long does a judgment last in Texas?

This guide doesn't state a specific judgment-duration or renewal figure for Texas — see the sections above on lawsuits and judgments, and confirm current renewal rules with the Texas State Law Library or a Texas attorney.

Do credit repair companies have to be registered in Texas?

Yes. Under Texas Finance Code chapter 393, a credit services organization must register with the Secretary of State before doing business, and it needs a $10,000 surety bond or account to collect any fee before the work is done. Registration is a filing, not an endorsement, so the federal CROA rules still apply and complaints go to the Texas Attorney General or the CFPB.

When to talk to a professional