Where can I found out about Texas law re: unsecured loans?

Question

I was just served papers and am being sued regarding an unsecured loan that I had to let lapse about 4 years ago. With interest it's accumulated to around 6K and I am STILL in no place to pay it; I am full-time student working a part time job.

I remember being told by a friend when I moved to Texas that they can't garnish your wages let alone sue you for an unsecured loan. Can someone guide me where can I find out my options in this situation?

Answer 1

Texas is a 4 year state for statute of limitations (SOL) on open account collections. But, Texas is also a last action state. That means that your SOL starts to run from the last time you made a charge or a payment.

If you know that you are out of SOL or if you think you may be, include an affirmative defense of SOL in your answer. Make "them" prove that you were still within SOL when they filed.

If you "know" you are out of SOL for collections, be sure to also add a counter claim for them filing suit on a time barred debt.
You should also look over your credit reports, the letters they have sent you etc. and see if the collection agency had made any violations (there usually is) File counters on all of the violations.

Wage garnishment is not legal in Texas, except if your wages come from another state. If so, they may be able to garnish.
They can seize your bank account. Close your account and deal in cash.

Be sure to answer the summons in the time allowed or they will automatically get a default judgment.

Click on the first link I've provided and do some reading. Also click on the link at the very bottom, it will take you to the home page where there are links to your states statutes, rules of civil procedure etc.

You might also do some reading in the second link I've provide. You can learn what constitutes a violation, how to answer a summons etc in the forums on there.

If you have them on violations or the debt is time barred, you might check the naca site for an attorney in your area that deals with FDCPA. Ask if they will take the case on contingency.

Answer 2

Try this web site http://fair-debt-collection.com/statue-limitations-explained.html

I am not sure ,but I remember when I was in debt 1987, the statute was 2 years. Maybe this site can help you find your answer.