Below you will find important information on Texas state debt recovery laws including: Texas Statutes, Judgments, Garnishments, Interest Rates, and Bad Check Laws.
STATE: TEXAS
Interest Rate
- Legal: 6%
- Agreement: can charge up to 18%
- No Agreement: statutory interest of 6% begins to run 30th day after becoming due
- Judgment: 8.25% (effective 2007) Always consult counsel to charge interest – Texas has very onerous usury laws & penalties.
STATUTE OF LIMITATIONS (IN YEARS)
- Open Account: 4
- Written Contract: 4
- Promissory Note: 6
- Domestic Judgment: 10 Renewable
- Foreign Judgment: 10 Renewable
BAD CHECK LAWS (CIVIL PENALTY)
N/A
GENERAL GARNISHMENT EXEMPTIONS
100% of wages.