Texas law gives someone 4 years to bring a lawsuit for unpaid debt. This time period is commonly referred to as the statute of limitations.

Once the time period is up, a person is prohibited from filing suit to recover the debt. This means the debt is time-barred.

You still owe time-barred debts, but creditors and debt buyers lose their most powerful way of collecting — a lawsuit.

Does the 4-year clock ever start over?

In the past, certain actions like making a payment or acknowledging that you owe the debt could restart the clock on the limitations period. This created a problem where the statute of limitations could be constantly restarted. The issue is often referred to as "zombie debt."

In 2019, changes in the law aimed to protect people from zombie debt. Section 392.207 of the Texas Finance Code no longer allows the statute of limitations to be revived by a payment on the debt, a reaffirmation of the debt, or any other activity. 

The law also added new restrictions for debt buyers (defined as a person who purchases a consumer’s debt from a creditor): 

• Debt buyers are prohibited from suing to try to collect the debt after the statute of limitations has expired. This is true even if a payment is made on the debt.
• Debt buyers must provide written notice if they are taking actions past the limitations period..

Texas & Federal Laws

Understanding the Law