Navigating Credit Card Debt in Texas: State Laws and Protections to Be Aware of in Texas

 Posted on June 16, 2023 in Bankruptcy

Managing credit card debt can be a challenging endeavor for many individuals. It is crucial to be aware of the specific laws and protections in your state to effectively navigate this financial burden. This blog post will cover the significant Texas statutes and defenses that you should keep in mind when dealing with credit card debt.. The laws on credit card debt can change with time, though, so be sure to connect with a lawyer.

Statute of Limitations on Credit Card Debt in Texas

In Texas, there is a statute of limitations for credit card debt which means creditors have four years from the date of the last payment or acknowledgment of the debt to file a lawsuit and collect the debt. After this time, they cannot sue to collect the debt. It’s important to be aware that making a payment or acknowledgment could restart the statute of limitations, so it’s best to seek legal advice before taking any action.

Exemptions for Credit Card Debt in Texas

There are certain exemptions under Texas law that prevent creditors from taking certain kinds of property to pay off credit card debt. Examples of such exempt property include:

Homestead Exemption

Under the Texas Constitution, your primary residence, known as the homestead, is generally protected from creditors, including credit card companies. However, there are limitations to the value of the property that can be exempted, and certain types of debt may still have a claim against your homestead.

Personal Property Exemptions

Texas law provides exemptions for personal property, such as household furnishings, clothing, tools of trade, and certain types of vehicles, up to certain value limits. These exemptions can safeguard these assets from being seized to satisfy credit card debt.

Garnishment Laws in Texas

Creditors may attempt to garnish your wages or bank accounts to collect outstanding debt. However, Texas law imposes restrictions on garnishment:

Wage Garnishment

In Texas, wage garnishment is generally not allowed for consumer debt, including credit card debt. However, certain exceptions exist, such as child support, spousal maintenance, and federal student loans.

Bank Account Garnishment

While credit card debt cannot typically lead to bank account garnishment, it is crucial to keep your credit card and bank accounts separate. Commingling funds may inadvertently subject your accounts to seizure if other debts are pursued.

Debt Collection Practices

Texas has its own set of laws under the Texas Debt Collection Act prohibiting deceptive or abusive debt collection practices. Creditors and debt collectors must adhere to certain guidelines when collecting a debt, including limitations on communication methods, disclosure requirements, and restrictions on harassment or threats.

Contact a Texas Credit Card Debt Lawyer

Navigating credit card debt can be a complex process, but understanding the relevant Texas laws and protections can help you manage and protect yourself from unfair practices. Stay up-to-date with the credit card laws with a Fort Worth bankruptcy lawyer. Call Acker Warren P.C. at 817-752-9033 to see how we can help you with a fast turnaround.

Source: https://statutes.capitol.texas.gov/Docs/FI/htm/FI.392.htm

https://www.texasattorneygeneral.gov/consumer-protection/financial-and-insurance-scams/debt-collection-and-relief/your-debt-collection-rights