Texas Debt Relief: The Constitution Guards Your Paycheck, Not Your Bank Account
Texas wrote wage protection into its constitution, abolished reviving old debt by payment, and shields an unlimited value homestead. What it does not protect is money the moment it lands in your bank.
This page is for informational purposes only and does not constitute legal or financial advice. State laws change frequently. Consult a qualified attorney or financial professional for advice specific to your situation.
On paper, Texas is the hardest state in America to collect a consumer judgment: no wage garnishment, an unlimited value homestead, and generous personal property exemptions. In practice, collectors know exactly where the armor stops, at the bank.
The Texas paycheck myth, corrected
Old debt stays dead here
Texas closed the revival loophole in 2019. Under Finance Code 392.307, once the 4 year limitations period runs, the claim is not revived by a payment, an oral or written reaffirmation, or any other activity on the debt. Debt buyers may not sue or arbitrate on time barred debt at all, and their collection letters must carry a conspicuous notice that the debt is too old to sue on.
That makes the arithmetic simple: the last date you could be sued is fixed by the original default, and nothing a collector persuades you to do resets it.
What a judgment creditor can actually reach
Beyond bank accounts, the exemption walls are high: personal property up to an aggregate $100,000 fair market value for a family or $50,000 for a single adult across the itemized categories, home furnishings, tools of trade, vehicles per licensed household member, and the homestead itself is protected without any dollar cap, limited only to 10 urban acres or 100 to 200 rural acres.
One honest caveat: for Texans working for multistate employers, a garnishment order obtained where the employer also operates can sometimes reach wages despite Texas law. It is an edge case, but a real one.
Who regulates collectors here
Third party debt collectors must file a $10,000 surety bond with the Texas Secretary of State before collecting in the state, and debt settlement and debt management providers must register with the Office of Consumer Credit Commissioner, post security, and observe statutory fee caps.
The bond matters practically: it is recoverable by consumers damaged by violations of the Texas debt collection statute, which gives even small claims some teeth.
Texas debt questions
Can wages be garnished in Texas for credit card debt?
No. The Texas Constitution bars garnishment of current wages for personal service except court ordered child support and spousal maintenance. Federal collectors, the IRS and federal student loan programs, operate under federal law. Once wages are deposited in a bank, however, the funds can be frozen and seized under a writ of garnishment.
What is the statute of limitations on debt in Texas?
4 years for consumer debts, whether written, oral, or open account, under Civil Practice and Remedies Code 16.004. Since 2019, an expired debt cannot be revived by payment or reaffirmation, and debt buyers may not sue on time barred debt at all.
Can a creditor take my house in Texas?
An ordinary judgment creditor generally cannot force the sale of a Texas homestead, which is protected without a dollar cap, limited only by acreage: 10 urban acres, or 100 rural acres for a single adult and 200 for a family. Exceptions are the mortgage itself, taxes, and certain liens on the property.
Can a debt collector freeze my bank account in Texas?
Yes, with a judgment. The constitutional wage protection ends once pay is deposited, and Texas has no automatic bank account exemption or wage tracing rule, so a post judgment writ of garnishment can freeze the account. Exempt funds like Social Security keep their federal protections.
Do debt collectors have to be bonded in Texas?
Third party debt collectors must file a $10,000 surety bond with the Secretary of State before collecting in Texas, and the bond is recoverable by people damaged by violations of the state collection statute.
Sources and further reading: Texas Constitution art. 16 sec. 28 (wage protection), Civ. Prac. & Rem. Code 16.004 (4 year limit), Finance Code 392.307 (no revival; debt buyer limits), Property Code ch. 41 and 42 (homestead and personal property), Texas State Law Library: collecting the debt. Rates and rules change; confirm current figures with the official sources above before you rely on them.
Debt Relief in Other States
More states coming soon.