Texas Debt Collection Laws and Statutes

Texas Debt Collection Laws and Statutes

AccountsReceivable.com handles debt collections throughout the entire state of Texas.

Below you will find important information on Texas state debt recovery laws including: Texas Statutes, Judgments, Garnishments, Interest Rates, and Bad Check Laws.

STATE: TEXAS

Interest Rate

  • Legal: 6%
  • Agreement: can charge up to 18%
  • No Agreement: statuory interest of 6% begins to run 30th day after becoming due
  • Judgment: 8.25% (effective 2007) Always consult cousel to charge interst – Texas has very onerous usury laws & penalties.

STATUTE OF LIMITATIONS (IN YEARS)

  • Open Account: 4
  • Written Contract: 4
  • Promissory Note: 6
  • Domestic Judgment: 10 Renewable
  • Foreign Judgment: 10 Renewable

BAD CHECK LAWS (CIVIL PENALTY)

N/A

GENERAL GARNISHMENT EXEMPTIONS

100% of wages.

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