Checklist for Debt Collection in Texas

1 - Statute of limitations of the credit

Four years from when debt first due and unpaid

2 - How to interrupt the statute of limitations

File and serve initial pleading

Not required but necessary to claim attorneys' fees

4 - Competent Court

Depends on claim value; Justice Court up to USD20,000, County Court at Law up to USD250,000, District Court unlimited

5 - How to appoint a lawyer

Signed engagement with counsel

6 - Documents required for court action

Contract, invoices, statements of account, reminders, any acknowledgement of debt, useful correspondence

7 - Average duration of an ordinary lawsuit

18 to 24 months; Justice Court actions can be quicker

8 - Special proceedings for monetary claims

Potential to seek injunctions against payments, pre-judgment garnishment or attachment of debtor funds based on strict evidence (high standard)

9 - Regime of legal fees

Cost of court and attorneys' fees recoverable in suit on contract; typically added to judgment if proven but rarely paid as part of private settlement

10 - Interests on arrears

Primarily based on contract rate (practically capped at 18%); if no agreement, pre-judgment interest of 6% assessed by law on past damages only; post-judgment interest also available but variable (prime rate ɝ%, then 5%; prime rate ᡇ%, then 15%; current rate 8.5% (July 2025))