Texas is the second-largest US state economy with a distinctly business-friendly legal environment. For creditors with Texas-based debtors, understanding the state's specific framework is essential for effective recovery.
4 years for written contracts (Texas Civil Practice and Remedies Code § 16.004). 4 years for sales of goods under the UCC. 4 years for promissory notes. These are among the shorter limitation periods in the US — act before year 3 to preserve options.
Justice Courts handle claims up to USD 20,000 with simplified procedures and no attorney requirement. County Courts at Law handle claims from USD 20,000 to USD 200,000. District Courts handle claims above USD 200,000 and complex commercial disputes. Federal courts are available for diversity jurisdiction claims above USD 75,000.
Writ of execution (seizure and sale of non-exempt property). Garnishment of bank accounts and receivables. Turnover orders requiring the debtor to transfer assets to a receiver. Abstract of judgment creating a lien on real property in every county where it's recorded.
Texas has among the strongest homestead protections in the US — but this primarily affects individual guarantors, not corporate debtors. No state income tax means no state tax liens competing with creditor claims. Texas is a community property state, complicating personal guarantor enforcement. Pre-judgment garnishment is available in limited circumstances.
Texas courts recognise foreign judgments under the Uniform Foreign-Country Money Judgments Recognition Act (Texas Civil Practice and Remedies Code Chapter 36A). Houston and Dallas serve as major commercial hubs for international trade, particularly with Latin America and energy-sector companies.
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