Texas is the second-largest US state economy with a business-friendly legal environment and specific considerations for commercial debt collection.
The Texas Finance Code and Texas Business and Commerce Code govern commercial debt collection. The Texas Debt Collection Act (TDCA) primarily regulates consumer collection but includes provisions applicable to commercial claims.
4 years for written contracts and sales of goods. 4 years for oral contracts. These are among the shorter limitation periods in the US.
Justice Courts handle claims up to USD 20,000. County Courts at Law handle larger claims. District Courts handle claims above USD 200,000 and complex commercial disputes.
Texas has strong debtor protections for individuals (homestead exemption), but corporate debtor protections are more limited. Writ of execution, garnishment, and turnover orders are available for commercial judgments. Texas does not allow pre-judgment garnishment except in limited circumstances.
Texas is a community property state, which can complicate personal guarantor enforcement. The state's strong economy means most commercial debtors have attachable business assets.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
