Your rights with debt collectors in Texas
Federal and Texas law limit what collectors may do, protect most wages, and put a time limit on lawsuits. Here is what each rule means in plain words, with the exact text it rests on.
Ask them to prove it
Within five days of first contacting you, an outside collector must send a written notice. If you dispute in writing within 30 days, it must stop collecting until it sends verification.
15 U.S.C. § 1692g(b)If you dispute a debt in writing within 30 days of the collector's notice, the collector must stop collecting until it sends you verification.
Quoted text“the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt”Verified against the official source
Tell them to stop contacting you
A written stop-contact letter ends calls and letters from an outside collector, except notices that it is stopping or will take a specific legal step. The debt does not go away, and a lawsuit is still possible.
15 U.S.C. § 1692c(c)You can tell a debt collector in writing to stop contacting you. After that it may only write to confirm it is stopping or to say it may take a specific legal step. The debt itself does not go away.
Quoted text“the debt collector shall not communicate further with the consumer with respect to such debt”Verified against the official source
15 U.S.C. § 1692c(c)A mailed stop-contact letter takes effect when the collector receives it — certified mail gives you proof.
Quoted text“If such notice from the consumer is made by mail, notification shall be complete upon receipt”Verified against the official source
Texas law covers original creditors too
The Texas Debt Collection Act forbids threats, false statements and harassment by anyone collecting a consumer debt — including the original lender.
Old debts
In Texas, a lawsuit on most debts must be filed within four years. A debt buyer may not sue after that, and a payment does not restart its clock. Do not pay or promise to pay on an old debt before asking a lawyer.
Tex. Civ. Prac. & Rem. Code § 16.004(a)In Texas, a lawsuit to collect a debt generally must be filed within four years. When the clock starts is a legal question.
Quoted text“not later than four years after the day the cause of action accrues”Verified against the official source
Tex. Fin. Code § 392.307(c)A debt buyer may not sue on a consumer debt after the limitations period has run.
Quoted text“may not, directly or indirectly, commence an action against or initiate arbitration with a consumer to collect a consumer debt after the expiration of the applicable limitations period”Verified against the official source
Tex. Fin. Code § 392.307(d)In Texas, a payment on a time-barred debt owned by a debt buyer does not restart the right to sue.
Quoted text“the cause of action is not revived by a payment of the consumer debt”Verified against the official source
Your wages are protected
Texas protects current wages from garnishment for ordinary debts. The exceptions: court-ordered child support and spousal maintenance, federal student loans (up to 15% without a lawsuit) and federal taxes.
Tex. Prop. Code § 42.001(b)(1)Current wages are protected from ordinary creditors in Texas; court-ordered child support is the main exception.
Quoted text“current wages for personal services, except for the enforcement of court-ordered child support payments”Verified against the official source
20 U.S.C. § 1095a(a)(1)Federal student loans are an exception to Texas wage protection: the government can garnish up to 15% of disposable pay without a lawsuit.
Quoted text“may not exceed 15 percent of disposable pay”Verified against the official source
"Judgment-proof"
If everything you own and earn is protected — wages, a homestead, exempt personal property, retirement — a creditor can win a judgment but may have little it can lawfully take. The debt still exists and still affects credit.
Tex. Prop. Code § 41.001(a)Texas protects a homestead from most creditors — but not from the mortgage, property taxes, or other liens the law allows on a home.
Quoted text“are exempt from seizure for the claims of creditors except for encumbrances properly fixed on homestead property”Verified against the official source
Tex. Prop. Code § 42.001(a)Texas protects listed personal property up to $100,000 for a family ($50,000 for a single adult), not counting what is owed on it.
Quoted text“has an aggregate fair market value of not more than $100,000”Verified against the official source
Tex. Prop. Code § 42.0021(b)Qualified retirement accounts (401(k), IRA, pensions) are generally protected from creditors in Texas.
Quoted text“whether vested or not, is exempt from attachment, execution, and seizure for the satisfaction of debts”Verified against the official source
Wrong information on your credit report
You can dispute errors with the credit bureau for free; it must reinvestigate, generally within 30 days. Get free reports at AnnualCreditReport.com.
15 U.S.C. § 1681i(a)(1)(A)You can dispute wrong information on your credit report for free; the credit bureau must reinvestigate, generally within 30 days.
Quoted text“conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate”Verified against the official source
Medical debt on credit reports
A 2025 federal rule to remove medical bills from credit reports was struck down by a court. The three bureaus still do not report medical collections under $500, paid medical collections, or medical debt less than a year old.
After a foreclosure sale
If a Texas sale brings less than the loan balance, the lender may sue for the rest within two years, and you can ask the court to use the home's fair market value instead of the sale price. After a court-ordered sale, that request must be made within 90 days.
Tex. Prop. Code § 51.004(b)After a court-ordered foreclosure sale, a person owing the balance can ask a court to use the home's fair market value — within 90 days.
Quoted text“not later than the 90th day after the date of the foreclosure sale”Verified against the official source
Taxes on forgiven debt
Forgiven debt can count as income. Debt discharged in bankruptcy is excluded, and so is debt forgiven while you are insolvent, up to the amount you are insolvent. This is claimed on IRS Form 982 — ask a tax preparer.
26 U.S.C. § 108(a)(1)(B)Forgiven debt can count as income for taxes, but not debt discharged in bankruptcy, and not while you are insolvent (up to the amount you are insolvent). This is claimed on IRS Form 982 — ask a tax preparer.
Quoted text“the discharge occurs when the taxpayer is insolvent”Verified against the official source
Student loans
Federal student loans have income-driven repayment options and follow special rules in bankruptcy. Check your options at StudentAid.gov.
If a collector breaks these rules, you can complain to the Consumer Financial Protection Bureau and the Texas Attorney General, and talk to legal aid about your rights.
- Consumer Financial Protection Bureau — Debt collection helpVisit siteLink checked Sep 22, 2026
- Federal Trade Commission — ReportFraud.ftc.govVisit siteLink checked Sep 22, 2026
- AnnualCreditReport.com — free credit reportsVisit siteLink checked Sep 22, 2026
- Federal Student Aid — income-driven repaymentVisit siteLink checked Sep 22, 2026
- IRS — About Form 982 (reduction of tax attributes due to discharge of indebtedness)Visit siteLink checked Sep 22, 2026
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