Texas Debt Relief
Texas Credit Card Debt law provides for a Statute of Limitations (SOL) of 4 years for creditors filing suit. This time limit also applies to suits for unpaid Credit Card Debt. The SOL starts from the date of the first missed payment and remains static. Subsequent payments will not change the expiration date of the SOL. Answers to a debt summons should be sent by certified mail within 20 days or the time indicated in the summons. Otherwise, the court will enter a judgment for the creditor automatically.
Texas judgments remain enforceable for 10 years. If not executed within that time, the judgment becomes dormant. The creditor has an additional 2 years to revive the judgment or it becomes unenforceable. Interest on a judgments is charged at the lesser of 18% or the amount specified in the contract. Recording an abstract of judgment in the appropriate county places a lien against the debtor’s real property. The debtor may claim homestead to avoid seizure of his home. Some personal property exemptions are also allowed.
In Texas, the debtor may not attach wages for consumer debts. However, the creditor can garnish bank accounts, rents and royalties. If the debtor’s wages come from an out-of-state entity, there is a legal work around by which they may be garnished.
Consumers are wise to consider Debt Settlement rather than relying on the court to issue a judgment that is fair. Debt Settlement allows for interest free payment plans, helps to avoid bankruptcy and protects the consumer’s assets as long as agreed payments are made.